Categories: Stock Market News

Samsung unveils AI smartphones with Qualcomm chips, teases slimmer Galaxy telephones


By Hyunjoo Jin

SEOUL/SAN FRANCISCO (Reuters) -Samsung Electronics on Wednesday unveiled its latest Galaxy S25 smartphones, powered by Qualcomm (NASDAQ:QCOM)’s chips and Google’s artificial-intelligence mannequin, hoping its upgraded AI options can reinvigorate gross sales and fend off Apple (NASDAQ:AAPL) and Chinese language rivals.

Samsung (KS:005930) additionally previewed a thinner model of the flagship fashions on the finish of an occasion in California, aiming to launch the Galaxy S25 Edge within the first half of this 12 months forward of Apple’s anticipated rollout of its slimmer iPhone.

Samsung was quicker than Apple in launching an AI-powered smartphone however didn’t regain its crown within the world smartphone market final 12 months, squeezed by competitors with the U.S. rival within the premium market and with Chinese language corporations within the lower-end section.

“We’re one step forward of the business when it comes to providing AI options. I consider we’re getting into the proper course,” Park Ji-sun, the chief vp who leads Samsung’s Language AI group, advised Reuters.

Samsung stored the costs of its Galaxy S25 collection unchanged at between $799 and $1,299.

The brand new Galaxy S25 makes use of Gemini provided by Alphabet (NASDAQ:GOOGL)’s Google as its default AI engine, and options Samsung’s upgraded in-house voice assistant, Bixby, Park stated.

The 2 instruments complement one another, and Bixby performs a key position at Samsung, whose merchandise span cell phones to TVs and residential home equipment, he stated. 

Thomas Husson, an analyst at Forrester, stated that differentiating Bixby could be a problem for Samsung. 

“I do not suppose there’s actually a killer utility immediately that you realize would persuade them (shoppers), ‘OK, I will purchase this one as a result of it is an AI smartphone,'” he stated.

Husson added, nevertheless, that AI options may create a halo impact across the Samsung model.

The Galaxy S25 will provide a extra customized AI expertise. For instance, its “Now Transient” service – which makes suggestions to customers based mostly on personalised information that’s saved and processed on the telephone for privateness causes – will show a collection of customised gadgets corresponding to calendars, information and bed room air temperature and carbon dioxide ranges, Park stated. 

The telephone will have the ability to perform a number of duties with a single command, corresponding to discovering upcoming sporting occasions after which including them to customers’ calendars.

Samsung shares had been down 1.1%, lagging the broader market’s 0.4% loss.

Samsung used Qualcomm’s Snapdragon 8 Elite Cell Platform for your entire Galaxy S25 lineup, ditching its personal cell chip Exynos, a serious change of technique for an organization that beforehand used each to have extra bargaining energy with suppliers.

Utilizing a Qualcomm chip is a setback to the South Korean agency’s chip enterprise, which counts its cell division as one in all its main clients.

Samsung didn’t say why it determined to not use its personal chips within the new mannequin.

An individual accustomed to the matter stated Samsung is wanting to make use of the Exynos chip in its foldable telephones to be launched later this 12 months.

“The Galaxy S25 collection’ sale is vital at a time when Samsung’s foldable telephone gross sales have been stagnating within the face of challenges from Chinese language corporations,” Lim Su-jeong, affiliate director at analysis agency Counterpoint, stated.

Samsung’s preliminary fourth-quarter revenue, launched earlier this month, missed estimates by a big margin attributable to chip improvement prices and rising competitors within the smartphone market.

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