Samsung is betting that its plans for on-device artificial intelligence next year could lead to exceptionally strong Galaxy S24 sales and ultimately propel the company to the top of the smartphone market.
The Korean tech giant said on Monday that it’s forecasting 35 million Galaxy S24 unit sales next year, thanks to its plans to directly integrate AI into the phone — a move it’s calling “on-device AI.”
Instead of relying on third-party services to drive the Galaxy S24 lineup’s AI features, Samsung instead wants to integrate AI directly into its software, ensuring it works out of the box on all key apps, including phone and messages, according to a report from The Korea Daily. Samsung is also planning to integrate Google Bard or OpenAI’s ChatGPT directly into the device, the report says.
Like every other major tech company, Samsung is sprinting into the AI craze across its entire product line. But so far, AI integration in the best Android phones has been cumbersome and largely requires users to access third-party services to utilize the technology.
Samsung’s apparent plan, however, centers on baking AI into the Galaxy S24 lineup and allowing users to employ it without the hassle. More importantly, according to one source from The Korea Daily, Samsung firmly believes such an integration could catapult it ahead of Apple and other smartphone makers.
“Should the AI smartphone take off, it is an opportunity after 10 years to take the lead in the smartphone [sector],” one source told The Korea Daily about Samsung’s strategy.
Even if the AI integration takes off, selling 35 million Galaxy S24 units next year will be no small feat. The last three Galaxy generations — Galaxy S21, S22, and S23 — have all hovered at around 30 million global unit sales. Samsung’s 35-million-unit projection suggests a more than 15% year-over-year jump compared to previous generations.
Meanwhile, Samsung has lost some of its luster in the flagship market where Apple remains the perennial favorite. Apple’s flagship iPhone forecast hasn’t been made public. However, the company expects to ship approximately 250 million iPhones next year. Samsung, across its entire smartphone product line, is forecasting 253 million shipments.
Apple's bringing AI to the iPhone too
Samsung may also find that it’s expected AI lead may be short-lived — if it ever exists at all. Just last week, Apple CEO Tim Cook said that his company plans to integrate generative AI into its product line starting next year.
“We’re investing quite a bit [in AI],” Cook said during an earnings call last week. But there’s one caveat in Apple’s plan: the company only plans to deploy it “responsibly.” Exactly what that means for Apple’s AI integration and how it may compete with Samsung’s own plans is unclear.
Samsung is slated to announce its flagship Galaxy S24 lineup in January or February next year. Samsung is expected to unveil a handful of versions, headlined by the Galaxy S24 Ultra. The company is also planning a lower-powered Galaxy S24 Plus and Galaxy S24, according to reports. Pricing is still unknown, but could range from $799 to $1,199, depending on the model.
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