Samsung's AI-Powered Galaxy S24 Series Set to Revolutionize Smartphone Market

Samsung's new foldables boosted by AI, annual sales growth to exceed 20%

On July 10, Samsung Electronics unveiled its new generation of foldable smartphones. Samsung announced the Galaxy Z Fold 6 and Flip 6 series, along with new products such as the Galaxy Watch Ultra, Galaxy Watch7, and the true wireless Bluetooth earphones Galaxy Buds3 Pro and Galaxy Buds3. Following the announcement, Samsung partnered with telecom and distribution partners to outline pre-sale and sales plans for these products on July 11. Jacob Chen, President of Samsung Taiwan's Mobile Communications Division, stated that with hardware upgrades and the support of Generative AI (GenAI), the overall sales of the new foldable smartphones in 2024 are expected to grow by more than 20% compared to the Galaxy Z Fold 5 and Flip 5 series in 2023. The prices of the new foldable smartphones are nearly NT$3,000 (US$92.26) higher than last year's models. Chen explained this increase is mainly due to hardware upgrades and exchange rates. However, Samsung plans to launch promotional programs and enhance consumer experiences with GenAI to stimulate sales. Market Performance and Consumer Insights Chen noted that foldable smartphones currently account for nearly 20% of Samsung's smartphone sales priced above US$600 in Taiwan, slightly lower than the global average of 25%. This discrepancy is due to previous concerns about camera specifications, battery capacity, and the durability of foldable smartphones. However, these issues have been resolved over the six years that foldable smartphones have been on the market. Foldable designs are more suitable for GenAI applications, and their continuous weight reduction contributes to Samsung's confidence in increasing sales this year. Chen believes foldable smartphones are the best mobile carriers for showcasing GenAI applications. In addition to being better suited for AI-based features such as interpretation compared to conventional smartphones, the large screens of foldable smartphones enhance the AI "Circle to Search" feature by allowing users to view more comprehensive information. Regarding the differences between Samsung's AI smartphones and competitors, Chen highlighted that Samsung currently excels in AI computing power, the comprehensiveness and globalization of its big data database, and cybersecurity, which will be Samsung's biggest advantage in promoting AI smartphones. With the launch of new products such as the Galaxy Fold 6 and Flip 6, Chen mentioned that although smartphone shipments in the first half of 2024 are expected to be on par with the same period last year, sales revenue is expected to grow by 4%. With the new products and the traditional peak consumption season of the second half of the year, smartphone shipments in 2024 are expected to increase by 5%. Samsung hopes to outperform the market average by leveraging the S series and foldable smartphones.

New Samsung smartphones showcase foldables, GenAI

Samsung's Galaxy Z Fold6 and Galaxy Z Flip6 models, which were unveiled at the Galaxy Unpacked Event 2024 in Paris on July 10, are the result of the integration of two significant industry trends: foldables and GenAI. According to Counterpoint Research, while these models offer incremental hardware advances, they stand out for Samsung's integration of Galaxy AI throughout its foldables and wearables. The models strengthen the Galaxy ecosystem and enhance the user experience on smartphones, wearables, PCs, and tablets. Samsung's hybrid approach to AI use cases broadens the Galaxy AI experience to other categories, Counterpoint indicated. Users will rely on end experiences rather than backend functionality. Samsung's distinction in terms of use cases based on the hybrid approach is clear. It showcases a variety of functions, including on-device Live Translate and cloud-based image production. Optimizing these experiences for foldables makes them more relevant. "Samsung's hybrid AI approach brings innovation to everyday experiences, showcasing seamless functionality from device to use case. It is a leap forward where user interaction is the key, whether it is live translation or foldable optimization. It is all about making tech work smarter for you," said Counterpoint Research director Tarun Pathak. With the release of the Z Fold6 and Z Flip6, Samsung is likely to gain greater market share in the foldables market, according to Counterpoint. The refreshed design of the new devices is more symmetrical and sleek, in addition to the significant enhancements. The hinge is further optimized with a dual-rail structure to improve Armor Aluminium and increase durability. Samsung has for the first time implemented a vapor chamber in the Z Flip series and has also increased the vapor chamber on the Fold6 to improve the gaming experience. From a productivity standpoint, the combination of Galaxy AI and the S Pen experience may make these devices the first to open content creation use cases previously seen in the AI PC category, Counterpoint indicated. However, the outer display upgrade is still inadequate for pleasant usage. Samsung emphasized important productivity and communication use cases for Note Assist, PDF Overlay, Sketch to Image, and Composer, making these features more relevant for productivity-centric devices like foldables. "Samsung's mission is to dismantle the foldable barriers. By boosting camera performance to 50 MP, extending battery life, and fortifying the display and hinge, Samsung tackles the hurdles head-on, making foldables more irresistible," said Counterpoint senior analyst Gerrit Schneemann. New Galaxy Watch, debut of Galaxy Ring Advanced health monitoring is a recent addition to the Watch Ultra features of the Galaxy Watch series. The latest chipset integration, WearOS 5, and durable capabilities further enhance its appeal. AI algorithms for sleep analysis and sleep apnea features enhance sleep monitoring. The bioactive sensor is more precise than comparable products on the market. Additionally, the 3nm processor is expected to deliver a 30% increase in power efficiency and a threefold increase in CPU performance. Samsung's debut with Galaxy Ring is expected to complement Galaxy Watch rather than compete with it. Galaxy Ring could act as a first point of entry to the Galaxy wearable segment for many users, potentially upgrading them to a watch later. However, the category faces challenges in managing multiple SKUs (nine size options) and privacy permissions in different regions, possibly contributing to the delayed launch, Counterpoint said. In terms of design, durability, and looks, the ring is promising. It weighs only 2.5-3 gm with seven days of battery life. The specially designed charging case is a highlight. The new energy score leverages four significant factors - sleep, activity, heart rate, and heart rate variability - to provide a more powerful wellness metric to users. Preventive and prioritized alert notifications will be key going forward. AI-enabled Galaxy Buds The Interpreter feature is an exciting addition, with AI coming to TWS faster than anticipated, according to Counterpoint. Samsung's early move in this area will help create meaningful use cases for the category. The refreshed design looks clean and comfortable for the ears. "The Interpreter feature is a game-changer, showcasing AI integration in TWS devices ahead of expectations," noted Pathak. "Samsung's proactive approach is set to redefine how we use earbuds by combining advanced functionality with a sleek, comfortable design that is perfect for long-term wear." The Galaxy Z Fold6, Z Flip6, and Galaxy Buds3 series will be available for pre-order starting July 10, with general availability starting July 24, according to Samsung.