Samsung is currently focusing on developing its suite of artificial intelligence features, known as Galaxy AI, specifically for the Chinese market. The company’s mobile chief expressed this strategy in an interview with CNBC, highlighting the importance of regaining market share that has been lost to local players in recent years. The introduction of Galaxy AI this year with the S24 smartphone series demonstrates Samsung’s efforts to attract customers to premium handsets through advanced features.
Despite Samsung’s global popularity, the company has faced challenges in China, where its market share for smartphones is currently under 1%. Local players like Huawei have dominated the market, making it difficult for Samsung to compete effectively. The company has been attempting to revamp its strategy in China without significant success. However, with the introduction of AI features, Samsung hopes to provide Chinese consumers with the technology they desire in their smartphones.
Samsung’s approach to developing Galaxy AI for China involves collaborating with local tech and internet companies. By integrating features like Baidu’s Ernie chatbot into its smartphones, Samsung aims to cater to the preferences of Chinese users and enhance the overall user experience. The complex regulatory environment and internet landscape in China require foreign firms to partner with local entities to launch AI features successfully.
Despite Samsung’s efforts to introduce AI features, experts suggest that it may not have a significant impact on the company’s fortunes in China. Francisco Jeronimo from IDC questions the uniqueness of Samsung’s offerings compared to established local brands like Huawei and Xiaomi. Competition in the Chinese smartphone market is fierce, with brand awareness playing a crucial role in consumers’ purchasing decisions.
Samsung’s mobile business head, TM Roh, acknowledges the intense competition in China’s smartphone market and emphasizes the importance of introducing premium devices that meet consumer expectations. The company is gradually expanding its distribution and retail sales channels to reach a wider audience in China. By focusing on creating products and features that resonate with Chinese consumers, Samsung aims to improve its market position in the country.
Samsung’s development of Galaxy AI for the Chinese market represents an essential step towards regaining lost market share and competing effectively with local players. The company’s strategic partnerships and focus on innovation will play a crucial role in shaping its success in China’s dynamic smartphone market. By understanding and catering to the unique preferences of Chinese consumers, Samsung can strengthen its position and drive growth in this key market segment.
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