Samsung Electronics introduced its latest Galaxy S25 smartphones on Wednesday, featuring Qualcomm's processors and Google's artificial intelligence model. The company aims to boost sales and compete against Apple and Chinese competitors with enhanced AI capabilities.
During an event in California, Samsung also showcased a slimmer version of its flagship models, planning to release the Galaxy S25 Edge in the first half of this year, ahead of Apple's expected launch of a more streamlined iPhone.
Despite being the first to market with an AI-driven smartphone, Samsung struggled to reclaim its position as the leader in the global smartphone industry last year, facing stiff competition from Apple in the premium segment and from Chinese manufacturers in the budget category.
"We are one step ahead of the industry in terms of offering AI features. I believe we are going in the right direction," stated Park Ji-sun, executive vice president and head of Samsung's Language AI team, in an interview with Reuters.
The pricing for the Galaxy S25 series remains consistent, ranging from $799 to $1,299.
The new Galaxy S25 utilizes Gemini, developed by Alphabet's Google, as its primary AI engine, and incorporates an enhanced version of Samsung's voice assistant, Bixby, according to Park.
These two technologies work in tandem, with Bixby being integral to Samsung's diverse product lineup, which includes mobile devices, televisions, and home appliances.
Forrester analyst Thomas Husson noted that distinguishing Bixby from competitors will be a significant challenge for Samsung.
"I don't think there is really a killer application today that you know would convince them (consumers), 'OK, I'm going to buy this one because it's an AI smartphone," he remarked.
However, Husson acknowledged that the AI features could enhance the overall perception of the Samsung brand.
The Galaxy S25 is set to provide a more tailored AI experience for users. Its "Now Brief" feature will offer personalized recommendations based on data stored and processed locally on the device, ensuring user privacy. This service will showcase a range of customized information, including calendars, news updates, and environmental metrics like bedroom air temperature and carbon dioxide levels, according to Park.
Additionally, the device will be capable of executing multiple tasks with a single command, such as locating upcoming sporting events and automatically adding them to the user's calendar.
Samsung's stock experienced a decline of 1.1%, underperforming compared to the broader market's 0.4% drop.
For the entire Galaxy S25 series, Samsung has opted to utilize Qualcomm's Snapdragon 8 Elite Mobile Platform, moving away from its own Exynos chips. This marks a significant strategic shift for the company, which previously employed both chipsets to enhance its negotiating power with suppliers.
The decision to rely on Qualcomm chips represents a challenge for Samsung's semiconductor division, which relies heavily on its mobile segment as a key customer.
Samsung has not disclosed the reasons behind its choice to exclude its own chips from the new model.
According to an insider, Samsung plans to incorporate the Exynos chip in its upcoming foldable phones set to launch later this year.
"The Galaxy S25 series' sale is important at a time when Samsung's foldable phone sales have been stagnating in the face of challenges from Chinese companies," noted Lim Su-jeong, an associate director at research firm Counterpoint.
Earlier this month, Samsung reported preliminary fourth-quarter profits that fell significantly short of expectations, primarily due to expenses related to chip development and heightened competition in the smartphone sector.