Samsung’s Galaxy AI Sets New Standards: What to Expect from the S24 Series

The escalating global competition for artificial intelligence (AI) phones, led by the Galaxy S24, is expected to innovate AI-related industries that have grown around semiconductors significantly. As Samsung Electronics declared the creation of a new AI ecosystem by installing generative AI in 100 million mobile devices, Chinese manufacturers eyeing the premium market have joined the competition. Apple, which leads the world’s information technology (IT) trend, is also expected to enter the competition soon. Samsung Electronics’ Galaxy S24 series, which claims to be the world’s first on-device AI phone, is the main attraction of this year’s Mobile World Congress (MWC). The Galaxy S24 series features Galaxy AI, a lightweight feature that combines several large language models (LLM), such as Samsung’s Gauss and Google’s Gemini. It can be used for real-time call translation, “Circle to Search,” which searches by drawing a circle on the image, and “Note Assist,” which simplifies complex texts. The AI installed on the device enables most AI features to be used without a network connection.

Samsung Electronics’ strategy is to quickly increase its market share through Galaxy AI as a first mover and create a strong market dominance. The Galaxy S24, the Galaxy S23 series, the Galaxy Z Fold, and other existing products will be updated with the operating system (OS) for the integration of Galaxy AI. To lead the global spread, it plans to build its own AI mobile ecosystem by installing AI on 100 million mobile devices, such as smartphones, tablets, smartwatches, and other wearable devices. The market response is also strong, with a record-breaking 1.21 million units in pre-sales for the Galaxy S24 series. Market research firm Counterpoint Research predicts that this year’s Galaxy S24 series will sell 36 million units, significantly surpassing its predecessor (about 30 million units).

As indications of the AI phone market opening emerge, Chinese manufacturers are also entering the arena and actively pursuing opportunities. Huawei is implementing AI phones by connecting its LLM, Pangu, and AI assistant service, Celia, to smartphones. In particular, Huawei has expedited the launch of on-device AI phones by announcing plans to install Pangu on its self-developed smartphone OS, Harmony.

Xiaomi also jumped into the AI phone market with its latest smartphone, the Xiaomi 14. Last year, Xiaomi’s CEO Lei Jun said that installing LLM in all mobile and Internet of Things (IoT) products is a medium- and long-term strategy. Xiaomi established a dedicated LLM research team for AI model weight lightening in April last year and reportedly invested 20 billion yuan (approximately $3.14 billion) in the research last year. Xiaomi unveiled its own LLM, MiLM, in August last year and is conducting tests by incorporating it into the mobile assistant Xiao AI. Vivo, Oppo, Honor, and others. Although it has been focusing on the mid-to-low-priced smartphone market, it plans to launch an AI phone offensive by turning its eyes to the premium phone market.

Apple is also gearing up to join the competition. According to the IT industry, Apple is expected to debut in the AI phone market with the launch of the iPhone 16, scheduled for the second half of this year. In a conference call, Apple CEO Tim Cook said that developers are “continuing to put a lot of time and effort” into developing AI features.

Apple is expected to massively update AI features on its next-generation OS, iOS18, and install them on the newly launched iPhone. The industry expects Apple’s AI strategy to be revealed at the WWDC developer conference in June. Given Apple’s influence in the global IT market, the decision for Apple to enter the AI phone market will likely serve as a pivotal moment for future market expansion. An industry insider said, “The expansion of the related market can speed up if Apple jumps into the AI phone market.”

The spread of the AI phone market is expected to bring about a massive innovation in information and communication technology (ICT) as more consumers experience the direct benefits of AI technology. If semiconductor companies such as Nvidia, Samsung Electronics, and SK Hynix led the AI boom until last year, this year, smartphone manufacturers and companies developing related services to be installed on these devices are expected to be at the center of industry expansion. An industry insider said, “The focus has been on the sophistication of AI technology and the competition for chips for it so far. However, from now on, the focus will shift to actual AI experiences and the discovery of profitability.”