Samsung is developing AI features specifically for China as it looks to claw back into market

But China, the world’s biggest smartphone market, has been a struggle for Samsung over the last few years. Its market share for smartphones sits under 1%, with local players like Huawei dominating.

Samsung has been trying for several years to revamp its strategy in China with little success. Now, the tech giant is hoping AI will be able to give it the features its smartphones need to attract Chinese users.

“We are especially developing and we are going to especially develop our Galaxy AI capabilities for that market,” TM Roh, head of Samsung’s mobile business, told CNBC in Korean via a translator during an interview.

“I believe by making efforts to create mobile AI for China, mobile AI that can satisfy that will be wanted by the Chinese consumers, by advancing this technology that will contribute to the recovery we’re going to have in the Chinese market,” he said.

Roh didn’t give too much detail on what that Galaxy AI in China might look like, but said it will rely on working with local tech and internet companies.

For example, this year, Baidu integrated its Ernie chatbot into Samsung’s Galaxy S24 smartphones, in a partnership between the two firms.

AI in China is complicated due to the strict regulations around the technology and Beijing’s control over the internet landscape.

Foreign firms looking to launch AI features in China likely need to partner with local companies.

Apple, which announced its Apple Intelligence AI suite of features this year, has still not given any date for when those might launch in China as it likely faces similar challenges to Samsung. 

Francisco Jeronimo, vice president for devices research for Europe, the Middle East and Africa at IDC, told CNBC that the introduction of AI features to China “won’t make a massive difference” to its fortunes as brand awareness of Samsung is too low and Chinese players are also introducing rival applications.

“We all know that China is a leading market and country in AI. What can Samsung bring to the market is so unique for Chinese consumers to chuck away their Huawei, Xiaomi and Honor smartphone and buy a Samsung?” Jeronimo questioned.

Roh admitted that competition in China’s smartphone market is “more heated than anywhere else.” 

He said Samsung’s strategy in China revolves around introducing premium devices to the market and expanding distribution and retail sales channels.

“Currently, although piecemeal, but we are making progress step by step, we are putting together our efforts to create the products and features that will be wanted by the consumers and that can satisfy the consumers out there,” Roh said.