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1. Challenges and opportunities coexist in Samsung's smartphone market.
In recent years, Samsung's performance in the global smartphone market has faced many challenges. In the mass market, especially in the sub-$150 segment, Samsung's market share has fallen to an all-time low of 9 percent, behind Xiaomi's 23 percent and Transsion's 30 percent. In the high-end segment, although Samsung was once the market leader, its market share has slipped from 25% in 2019 to 19% in 2023, according to Canalys data, while Apple's sales have increased by 8%.
In addition, as a pioneer in foldable phones, Samsung's leading position in this field has also been challenged. According to the Canalys report, as of the third quarter of 2023, Samsung's global market share of foldable devices has fallen to 65% from a high of 86% in 2021.
2. Device-side AI: a breakthrough in Samsung's smartphone business.
In the face of these challenges, Canalys believes that Samsung has a significant advantage in the application of on-device AI technology, which will be an important breakthrough for its smartphone business. On-device AI technology can process large amounts of data locally without frequent network data access, providing a more personalized and efficient user experience. This technology offers significant advantages in terms of cost, revenue, and versatility.
3. Samsung's software and service diversification strategy.
For a long time, Samsung's revenue relied mainly on the sale of equipment and hardware components. However, according to Samsung's 2022 financial report, its performance in the "services and other revenue" segment is not ideal, with related revenue accounting for less than 4% of total revenue. According to Canalys, Samsung needs to further expand its software and services business to reduce its reliance on hardware sales and strengthen the company's resilience.
Fourth, device-side AI helps Samsung build a unique ecosystem.
With on-device AI technology, Samsung has developed a range of unique software solutions that temporarily outpace its competitors. To maintain this advantage, Samsung needs to build an open ecosystem of collaborations that encourage other vendors to be compatible with or join its AI ecosystem. This will help Samsung consolidate its leadership position in the market while driving growth and innovation across the industry.
5. Samsung's strategic adjustment in response to market changes.
Against the backdrop of a changing market environment, Samsung is actively adjusting its strategy. On the one hand, Samsung has increased its R&D investment in AI technology on the device side, striving to enhance the competitiveness of its products through technological innovationOn the other hand, Samsung is also working hard to expand its software and services business in order to diversify its revenue**.
6. Practical application cases of Samsung's AI technology.
The report also lists a number of practical application cases of Samsung's AI technology, including intelligent voice assistant Bixby, camera optimization algorithms, battery management technology, and more. These cases fully demonstrate Samsung's deep strength in the field of on-device AI, while also bringing consumers a more convenient and intelligent experience.
7. The future development prospects of Samsung's AI technology.
Looking to the future, with the continuous development of technologies such as 5G, Internet of Things, and big data, AI technology will play an increasingly important role in the field of smartphones. Canalys**, Samsung will continue to deepen the R&D and application of AI technology on the device side, and promote its AI ecosystem globally. This will help Samsung regain its leading position in the global smartphone market and bring more innovative products and services to consumers. Overall, Samsung is facing fierce competition in the smartphone market and changes in consumer demand. However, through the continuous innovation and application of AI technology on the device side, Samsung is expected to break the homogeneous market pattern and achieve a revival of the smartphone business. At the same time, Samsung also needs to further expand its software and services business to reduce its dependence on hardware sales and improve the company's overall competitiveness. In the future, Samsung will continue to deepen the R&D and application of AI technology on the device side to bring a smarter and more convenient product experience to consumers around the world.