Top 3 Key Points:
- Samsung’s AI Strategy: Galaxy AI boosts flagship sales and may soon expand to mid-range models.
- Gemini AI Panel: New glowing interface and contextual features enhance AI interaction on Samsung devices.
- Market Impact: AI integration could solidify Samsung’s lead in the competitive mid-range phone market.
Samsung has recognized the immense potential of artificial intelligence to drive smartphone sales, particularly with its Galaxy AI. This became evident during the Galaxy S24 Unpacked event, where the company focused heavily on the AI features, leaving hardware upgrades as an afterthought. The impact of Galaxy AI on sales has been significant, with Samsung noting an uptick in Galaxy S24 purchases. Following this success, Samsung also incorporated new AI features in its latest foldable phones, further solidifying its position in the market.
Within weeks of its release, Galaxy AI was running on more than 100 million devices globally, thanks to Samsung’s swift rollout to older flagship models. With the recent launch of the Galaxy Z Fold 6 and Galaxy Z Flip 6, the company aims to expand Galaxy AI to 200 million devices by year-end—a remarkable feat considering the timeline.
Currently, Galaxy AI is exclusive to Samsung’s flagship models, both current and some previous generations. However, Samsung sees a massive opportunity in the mid-range market, which is crowded with competitors, especially in crucial markets like India. While Samsung has maintained its market share through strong brand recognition and robust customer service, it faces fierce competition from other brands that offer aggressively priced mid-range and budget devices.
To navigate this challenging landscape, Samsung has traditionally marketed its Galaxy A series with the tagline “Awesome screen, awesome camera, long-lasting battery life,” highlighting the core features that matter most to mid-range buyers. But as the market reaches a saturation point in terms of specs, the next big differentiator is AI.
AI has captured global attention, with many users eager to see how it can enhance their smartphone experience. Major brands like Samsung, Apple, and Google are integrating AI into their devices, but in the mid-range segment, Samsung’s competitors may struggle to keep up, particularly in developing their own AI solutions.
Samsung’s extensive investment in AI, combined with its strong partnership with Google, places it in a unique position to lead the mid-range market with AI-powered features. However, the company is taking a cautious approach, gradually introducing AI beyond its flagship models. Recently, Samsung announced the launch of “Circle to Search” for select Galaxy A series models and the Galaxy Tab S9 FE, but the core Galaxy AI features are still reserved for flagships.
Samsung’s strategy appears to be keeping Galaxy AI exclusive to flagships for now, leveraging it to drive premium sales. But as AI continues to evolve, it’s likely that Samsung will eventually bring these features to its mid-range devices, starting with premium models like the Galaxy A5x series. When that happens, Samsung’s mid-range offerings could set a new standard in the industry, further integrating with the company’s growing AI-focused ecosystem.
Additionally, Samsung phones are set to receive a new feature that mirrors the glowing panel seen in Apple’s Siri. Google is rolling out the Gemini AI assistant, which introduces a glowing animation around the AI panel on Android phones, including Samsung devices. This feature adds a visually engaging layer to AI interactions, enhancing the user experience.
During the recent Pixel 9 event, Google unveiled several upcoming changes to Gemini, including a new contextual overlay that interacts with users without overtaking the entire screen. This overlay, teased at Google I/O 2024, enables on-screen responses rather than switching entirely to the Gemini interface.
Another notable addition is the “Ask about this video” feature, which replaces the previous “Ask about this screen” option. This update allows users to request summaries or ask follow-up questions about YouTube videos directly through the AI.
These updates are rolling out gradually, so not all users will see them immediately. Since it’s a server-side update, no app update is needed, but keeping your Google and Gemini apps up to date will ensure you receive the new features as soon as possible.
Samsung’s strategic use of AI, combined with innovative features like the Gemini AI panel, positions the company to not only maintain but potentially expand its dominance in both the flagship and mid-range smartphone markets.
