Samsung’s mobile chief recently revealed to CNBC that the company is working on developing its suite of artificial intelligence features, Galaxy AI, specifically for the Chinese market. This move comes as Samsung aims to regain market share that has been significantly impacted by local players in China. Despite launching Galaxy AI this year with its S24 smartphone series, Samsung’s market share in China remains below 1%, with local giants like Huawei leading the market. Samsung has been struggling to make a mark in the Chinese smartphone market for several years, and its focus on AI is seen as a way to attract Chinese users and improve its position in the market.

AI technology in China is a complex landscape, with strict regulations and Beijing’s control over the internet space presenting challenges for foreign firms. Samsung’s approach to building Galaxy AI for China involves working closely with local tech and internet companies to develop features that resonate with Chinese consumers. By partnering with companies like Baidu, Samsung aims to integrate local expertise into its AI capabilities, making its smartphones more appealing to the Chinese market. While Apple has also announced its Apple Intelligence AI suite of features, launching AI in China remains a challenge for foreign companies due to regulatory and competitive reasons.

Challenges and Competition in the Chinese Smartphone Market

The Chinese smartphone market is fiercely competitive, with local players dominating the landscape. Samsung faces an uphill battle in China, as brand awareness remains low compared to competitors like Huawei, Xiaomi, and Honor. Despite introducing AI features specifically designed for Chinese users, Samsung’s ability to sway consumers away from local brands remains uncertain. Francisco Jeronimo from IDC noted that simply introducing AI features may not be enough to significantly impact Samsung’s fortunes in China, considering the strong presence of local players and their own AI applications in the market.

Samsung’s strategy in China centers around introducing premium devices to the market and expanding its distribution and retail sales channels. While competition is fierce, Samsung is focused on creating products and features that cater to the needs and preferences of Chinese consumers. TM Roh, head of Samsung’s mobile business, emphasized the importance of making gradual progress and meeting consumer demands in order to establish a stronger presence in the Chinese market. By listening to consumer feedback and adapting its offerings, Samsung hopes to gain traction and compete effectively against local rivals.

Samsung’s focus on developing Galaxy AI specifically for the Chinese market is a strategic move to address its declining market share in the region. By leveraging AI technology and working closely with local partners, Samsung aims to create innovative features that resonate with Chinese consumers. However, the challenges posed by local competition and regulatory hurdles in China make it essential for Samsung to carefully navigate the market and differentiate its offerings effectively. As it continues to push forward with its AI capabilities, Samsung’s success in China will depend on its ability to understand and meet the diverse needs of Chinese smartphone users.

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