- Demonstrating interesting out-of-the-box AI capabilities in the flagship S24 launch will attract early adopters and showcase innovation leadership.
- Samsung must seek a new way to compete with Apple and extend its market leadership in the Android ecosystem through product innovation and business models beyond just hardware
- Gen AI is integral to Samsung’s long-term strategy, especially in premium and flagship segments.
With Samsung’s Galaxy S24 series launch expected on January 17th, last-minute leaks are still rolling in on the Internet.
The spotlight of the event is expected to shine on three variants – Galaxy S24, Galaxy S24 Plus and Galaxy S24 Ultra.
Meanwhile, German publication WinFuture.de has leaked the full specifications for the devices which run on an Exynos 2400 chipset in European regions and a Snapdragon 8 Gen 3 SoC in other markets.
The Galaxy S24, to be available in 128GB and 256GB storage options, is said to feature a 6.2-inch full-HD+ (1,080×2,340 pixels) dynamic AMOLED display with up to 120Hz refresh rate.
In the camera department, the Galaxy S24 is expected to sport a triple rear camera unit, comprising a 50-megapixel primary sensor, a 12-megapixel ultra wide-angle lens, and a 10-megapixel telephoto sensor with 3x optical zoom.
The S24 Ultra, which could come in 256GB, 512GB and 1TB storage options with 12GB of RAM, gets a 6.8-inch QHD+ dynamic AMOLED display and sport a quad rear camera setup, comprising a 200-megapixel primary camera, a 12-megapixel ultra-wide sensor, a 50-megapixel telephoto shooter with 5x optical zoom, and an additional 10-megapixel telephoto lens with support for 3x optical zoom.
The Galaxy S24 Ultra is likely to get a Titanium frame, popularised by the iPhone 15 pro models, and could pack a 5,000mAh battery.
Seeks differentiation
However, research firm Canalys said that Gen AI is integral to Samsung’s long-term strategy, especially in the premium and flagship segments.
“Samsung must seek a new way to compete with Apple and extend its market leadership in the Android ecosystem through product innovation and business models beyond just hardware,” Canalys said.
Samsung announced its entry into the on-device AI in November by introducing the Galaxy AI. They offered a glimpse of what to expect with a Live Transcribe feature integrated directly into the phone call function without the need for using third-party apps.
The importance of succeeding in on-device AI cannot be understated. It is an opportunity to reshape not just the smartphone but the entire consumer electronics lineup.
Sheng Win, an analyst at Canalys, said that Samsung has several strategic advantages to take the lead in on-device AI.
“The ability to leverage its unique position to successfully navigate the future AI landscape will have huge implications for its long-term position as the leader in the smartphone and consumer electronics category.”
Samsung’s mass-market smartphone portfolio is especially at risk. In 2023 its market share of devices priced below $150 dropped to an all-time low of 9 per cent, below Xiaomi and TRANSSION at 23 per cent and 30 per cent respectively.
In the premium segment, it is not any easier for Samsung. Its market share of devices priced above $600 dropped to 19 per cent in 2023 from 25 per cent in 2019 with Apple gaining 8 per cent in the same period.
Intelligent software experience
Foldables offer growth potential in this segment and Samsung was a first mover in this category in 2020. However, the space has become crowded and Samsung’s market share of global foldable shipments has dropped to 65% as of Q3 2023 from a high of 86% in 2021.
He said that on-device AI is the opening Samsung needs to galvanise its smartphone category.
“Intelligent software experiences powered by on-device AI offer an opportunity to create truly personalized and unique value propositions for customers. Stand-out features can unlock new revenue streams through subscriptions and enterprise licensing, reinforcing Samsung’s market dominance.”
However, Canalys does not expect the Galaxy S24 to have a full suite of groundbreaking Gen AI features and solutions ready to use at this launch.
Samsung will instead focus on demonstrating the Galaxy AI’s potential to provide a robust AI ecosystem to support the development of AI solutions at a foundational level.
Showcasing its innovation capability
Canalys expects there will be some on-device AI features like Live-Transcribe, but most new AI features and solutions will be rolled out in the future using software updates.
The research firm expects that five per cent of the smartphones shipped in 2024 will be AI-capable to reach 635 million units and 45 per cent of the total smartphone market in 2027
In 2024, the smartphone market seeks fresh avenues for growth, with vendors leveraging GenAI integration as a strategic imperative for personalization and innovating through experiences.
In addition to Samsung and Google, Chinese vendors are accelerating their AI strategy with major product and OS launches in the first half of 2024.
Samsung must showcase its innovation capability and market leadership through the Galaxy S24 series launch, boasting the essential on-device AI hardware at scale and the appetite to develop AI solutions for global smartphone users.
Smart home integration
Win said that Samsung’s position as the market leader in many home appliances product categories is another strategic advantage.
“Samsung SmartThings already provides the capability to connect various Samsung devices under one app and gives a strong foundation to build personalised AI solutions in the smart home category.
“Samsung has unique assets that it must swiftly take advantage of. Apple has a limited product range in the home appliance category. Xiaomi has been growing its home IOT offerings in recent years but does not have the financial muscle to compete with Samsung in R&D investment.”
In the cybersecurity and enterprise space, Win said that Samsung Knox will also likely play a vital role in the company’s future AI plans.
Almost all Samsung smartphones are pre-installed with Samsung Knox, giving it a strong foundation to build on. Samsung’s Knox currently struggles to leverage its position as the device manufacturer to create clear competitive advantages over other software solution providers.
“The integration of on-device AI solutions with Samsung devices could potentially change the dynamics and give Samsung Knox a clear edge in this space,” Win said.
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