Seoul/San Francisco, Jan 22 – In a bid to reinvigorate its position in the global smartphone market, Samsung Electronics unveiled its latest Galaxy S25 series, powered by Qualcomm’s Snapdragon 8 Elite Mobile Platform and Google’s AI model Gemini. With advanced AI capabilities and a teaser for the slimmer Galaxy S25 Edge, Samsung aims to outpace competitors like Apple and Chinese manufacturers in both premium and budget segments.
AI-Driven Innovation
The Galaxy S25 represents Samsung’s ambitious step into AI-driven smartphones, featuring both Google’s Gemini AI engine and an upgraded version of its in-house assistant, Bixby. According to Park Ji-sun, executive vice president of Samsung’s Language AI team, the two AI tools complement each other, offering users a more personalized experience.
- “Now Brief” Service: This AI-powered feature analyzes user data stored on the phone to provide personalized recommendations for calendars, news, and even home conditions like air temperature and carbon dioxide levels.
- Multitasking AI: Users can issue single commands for multiple tasks, such as finding sports events and adding them to their calendars.
- Privacy-Centric Design: All personal data is processed and stored on the device, addressing privacy concerns.
However, Forrester analyst Thomas Husson noted that differentiating Bixby remains a challenge. While AI features may not yet serve as a definitive selling point, they can create a “halo effect” that boosts the Samsung brand.
Pricing and Competitive Positioning
Samsung retained its pricing structure for the Galaxy S25 series, ranging from $799 to $1,299, signaling confidence in its offerings despite market pressures. Acknowledging competition:
- Samsung’s early entry into AI smartphones hasn’t yet translated into dominance, with Apple leading the premium segment and Chinese brands commanding the lower-end market.
Strategic Shift: Qualcomm Over Exynos
In a significant move, Samsung has chosen Qualcomm chips exclusively for the Galaxy S25 lineup, shelving its own Exynos chips. This decision marks a departure from Samsung’s usual strategy of balancing suppliers to maintain bargaining power.
- A source hinted that Samsung plans to use Exynos chips in its upcoming foldable phones, set to launch later this year.
While this shift may benefit Qualcomm, it poses challenges for Samsung’s chip division, which counts its mobile arm as a major customer.
A Market Under Pressure
Samsung’s decision to focus on the Galaxy S25 comes amid a slowdown in foldable phone sales, particularly as Chinese competitors gain ground in the segment. According to Lim Su-jeong, associate director at Counterpoint Research, Galaxy S25 sales will be critical to offset stagnation in foldable phone performance.
Samsung’s preliminary Q4 profit figures underscored the challenges ahead. The company missed estimates due to high chip development costs and intensifying smartphone competition.
Looking Ahead
With its AI-focused Galaxy S25 and the upcoming launch of the slimmer Galaxy S25 Edge, Samsung is doubling down on innovation to stay ahead in a crowded market. Whether these moves will help it reclaim its crown remains to be seen, but for now, the message is clear: Samsung is betting big on AI to shape the future of smartphones.
