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Canalys: Samsung gains advantage with device-side Galaxy AI and is expected to escape the "homogeneous trap"

2024-04-23 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >

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Shulou(Shulou.com)12/24 Report--

CTOnews.com, December 8, Canalys today published an analysis of Samsung Galaxy AI, believing that Samsung's device-side AI has certain advantages, which can "escape the trap of smartphone homogenization" and diversify Samsung's software and services.

Canalys says Samsung's line of mass-market smartphones is now in jeopardy. In 2023, Samsung's market share of mobile phones sold for less than $150 fell to an all-time low of 9%, losing 23% to Xiaomi and 30% to audio.

At the high end of the market, Samsung's difficulties have not been alleviated. Samsung's share of the market priced above $600 (CTOnews.com Note: currently about 4296 yuan) fell from 25 per cent in 2019 to 19 per cent in 2023, while Apple's sales grew by 8 per cent over the same period.

Although Samsung is a pioneer in foldable products, competition in this area is also intensifying, with Samsung's global market share of collapsible devices falling to 65% from a high of 86% in 2021 by the third quarter of 2023.

CTOnews.com learned that Canalys believes that device-side AI is a breakthrough for Samsung smartphones to return to glory, and the device-side AI-driven software experience does not require a large amount of network data access, and can provide customers with more personalized options, which have advantages in terms of cost, revenue and functionality.

Canalys said Samsung's current revenue depends mainly on sales of devices and hardware components, while services contribute little, with Samsung reporting poor "services and other revenue" in 2022, accounting for less than 4 per cent of total revenue.

Samsung's high reliance on sales of equipment and hardware components makes Samsung extremely vulnerable to the decline in device shipments. This was particularly evident in the first half of 2023, when the division's memory business revenue fell 49 per cent, resulting in an operating loss of $7 billion (currently about 50.12 billion yuan).

Samsung, on the other hand, has created relatively unique software solutions with device-side AI, temporarily ahead of its competitors, but if Samsung is to maintain its position in the future, it needs to create an ecosystem for other competitors to be compatible or join.

Related reading: "Samsung Guanxuan Galaxy S24 series mobile phones are equipped with end-side AI function, and calls can be translated in real time."

Referenc

End-to-side AI helps Samsung to build an intelligent ecological road in the future

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