If you are sick of companies just blabbering about AI throughout their new product launches, get ready to get annoyed even more. Samsung plans to increase the sales of its high-end smartphones this year “by providing more personalized, differentiated AI experiences.”
Samsung plans to depend on Galaxy AI features to sell phones this year
Yesterday, Samsung published its earnings for the fourth quarter of 2024. The company's smartphone and mobile network division achieved KRW 25.8 trillion ($17.77 billion) in revenue and KRW 2.1 trillion ($1.44 billion) in operating profit. The company is already facing increasing difficulties in staying ahead of Apple and Chinese smartphone brands.
And the company's struggles with its AI memory chips aren't making things any easier. Its 12-layer HBM3E memory chips still haven't been certified by Nvidia, while its foundry business is struggling with trust and yield issues. The company has already made it clear in its press release that it expects semiconductor chip revenue to remain weak this year.
So, the South Korean firm will likely rely on its smartphone division for profits this year. And it is expected to follow the same cost-cutting strategy it did this year (with the Galaxy S25 series) and depend on software optimizations and Galaxy AI features to sell its high-end Galaxy S and Galaxy Z series devices.
While the company is “strengthening the foldable lineup to generate new customer demand,” it also warned that “major components (likely processors) are expected to increase this year due to advancements in hardware specifications.”
So, don't expect it to bring major hardware upgrades to its upcoming foldable phones. In fact, it appears that Samsung will use the Exynos 2500 chip in the Galaxy Z Flip 7. And that will not amuse Galaxy fans.
The company is working even more closely with Google to bring more Galaxy AI features powered by Gemini. It has made its stock apps work well with Gemini through deeper integration.
You can watch some of those new Galaxy AI features in our video below.
After looking at the current smartphone market, rising component prices, and the difficulties Samsung is facing with its semiconductor chips, it appears that you will see more of Galaxy AI and less hardware advancement for the rest of the year.
If you don't like AI, you will likely not be impressed with Samsung's upcoming phones this year.
