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After Apple Halts 'Hardware' Subscription Plans, Samsung Unveils Similar Strategy For AI-Powered Galaxy Smartphones - Samsung Electronics Co (OTC:SSNLF)
Samsung Electronics Co. Ltd. SSNLF is set to introduce a subscription model for its Galaxy smartphones. This move comes after Apple Inc. AAPL paused its own subscription service plans last month. What Happened:The subscription service, known as the AI Subscription Club, was initially launched in December for select Samsung home appliances in South Korea. Samsung's vice chair, Han Jong-hee, confirmed the expansion to Galaxy phones and the Ballie AI robot. The service will be available in Korea and the U.S., with Ballie being introduced first in these regions, The Verge and ETNews reported on Wednesday. Samsung's subscription model allows consumers to pay a monthly fee for AI-powered devices, offering optional repair and maintenance services. This approach aims to reduce upfront costs for users. The company plans to unveil more details during the Galaxy Unpacked event in San Jose, California, on Jan. 22. Meanwhile, Apple was developing a similar subscription service for iPhones, intending to offer new phones annually for a monthly fee. However, Bloomberg reported that the project was halted last month due to regulatory concerns and internal challenges. Why It Matters: The concept of hardware subscriptions has been gaining traction as a potential revenue booster for tech companies. According to a 2022 report, Apple was exploring this model to increase its revenue streams, as only the most dedicated Apple fans tend to upgrade their iPhones annually. Most users typically upgrade every three years, a frequency that has decreased over the past decade. Samsung's upcoming Galaxy Unpacked event, scheduled for Jan. 22, 2025, in San Jose, will likely provide further insights into their subscription plans. The event will showcase the new Galaxy S25 series and advancements in Galaxy AI, potentially setting the stage for Samsung's expanded subscription service. Read Also: Samsung CES 2025 Press Conference: From Cutting-Edge AI To Transparent Screens, Here's What To Expect Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Image via Shutterstock SSNLFSamsung Electronics Co Ltd$42.48-13.8%WatchlistOverviewAAPLApple Inc$242.400.08%Market News and Data brought to you by Benzinga APIs
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Samsung to Launch AI Subscription Club for Galaxy Phones, Ballie Robot
Subscriptions are all the rage these days, and here comes another one. According to ETNews, Samsung plans to offer a subscription service for Galaxy smartphones and its Ballie home robot in Korea. This AI Subscription Club is not related to Samsung's Galaxy AI service. Membership covers the cost of a device plus related maintenance services. Galaxy phones will be available with the AI Subscription Club beginning next month, according to Samsung Electronics Vice Chairman Han Jong-hee. Samsung's personal assistant robot will also be available through a subscription. Ballie is Samsung's round AI home companion robot. A promotional video shows that it can entertain pets, activate home routines, and project videos. The same teaser shows a person picking up the robot to make a video call, and Ballie projects the conversation on the wall. It can also be your workout buddy, counting your sit-ups and squats. Ballie was first revealed in 2020, but Samsung says it will be available in Korea and the US in the first half of 2025. The company demoed a working version of Ballie at CES 2025, though its real-life performance remains to be seen. Pricing information is unknown, but Amazon's own home robot, Astro costs $1,599.99. ETNews didn't say if the AI Subscription Club will hit the US and pricing wasn't disclosed. Apple offers a similar service for its iPhones called the iPhone Upgrade Program, which offers a new iPhone every year and includes AppleCare+. It could be to Samsung's benefit to offer its own service in the US. Samsung has already announced that it will introduce the next generation of Galaxy S devices at Unpacked on Jan. 22, which could be the perfect time to unveil its new AI Subscription Club.
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Samsung is rolling out a smartphone subscription next month
It looks like Samsung is finally ready to roll out a paid subscription for its AI-powered smartphones, but it might not look like what we were expecting. According to ETNews, Samsung Electronics vice chairman Han Jong-hee has confirmed that the company's AI Subscription Club, which launched last December for some of Samsung's home appliances in South Korea, will soon roll out to both Galaxy phones and the upcoming Ballie AI robot. "We will apply the subscription service to Galaxy smartphones starting next month," he says. "Ballie will be introduced first in Korea and the US, and we plan to supply it as a subscription in Korea." The AI Subscription Club isn't a requirement to access the Galaxy AI features on Samsung's phones and other devices, which the company has previously said will remain free to users at least until the end of 2025, with plans beyond that point unconfirmed. The model currently gives Korean consumers the ability to sign up to a monthly subscription for their AI-powered TVs, refrigerators, washing machines, and more, including optional repair and maintenance services, for the sake of a lower upfront cost. It's not clear if the subscription model will expand beyond South Korea, but there's a chance we'll find out more soon. Samsung has a Galaxy Unpacked event in San Jose scheduled for January 22nd, when it is expected to unveil the Galaxy S25 series.
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Samsung's AI Subscription Club Reportedly Lets Users 'Rent' Galaxy Phones
Ballie, Samsung's AI rolling robot, will be offered with the subscription Samsung will soon introduce a subscription service for Galaxy devices, the company reportedly announced at the Consumer Electronics Show (CES) 2025 in Las Vegas on Tuesday. Following its introduction, customers can "rent" Galaxy smartphones that leverage artificial intelligence (AI). The service, dubbed AI Subscription Club, is reported to also include Ballie, Samsung's AI rolling robot companion, which debuted in 2025 but is yet to be made available to consumers. According to the South Korean publication ETNews, Han Jong-hee, CEO of Samsung Electronics at CES 2025 announced the AI Subscription Club. It will reportedly enable customers in South Korea to effectively rent a Galaxy smartphone or other eligible AI devices by paying a recurring monthly fee. However, it did not reveal which devices will be part of the service and whether its upcoming flagship Galaxy S series handsets would also be available under the programme. It also remains unclear if the AI Subscription Club will be made available outside of South Korea. The service was launched in the company's home turf last month but is currently limited to home appliances only. It allows consumers to rent products such as AI-powered TVs, refrigerators, and washing machines without any upfront cost. They can also opt for repair and maintenance services along with the device. As per the report, Samsung's AI Subscription Club accounted for 30 percent of all the consumer electronic goods sold by the Samsung Store in the subsequent three-week period, with customers providing positive feedback. In addition to smartphones, the South Korean technology conglomerate will also make Ballie eligible for subscription in the first half of 2025. This move is reported to lower the initial upfront cost of the product and make it affordable for consumers. Samsung also reportedly confirms the launch of the AI companion robot, and it will be initially available for purchase in the US and South Korea, bolstering its "one-family one-robot" ambitions.
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Samsung announces its AI Subscription program - Phandroid
Samsung has recently announced plans to launch an AI Subscription program. The name is kind of misleading and it's definitely not what you think it is. Instead, this is more like a hardware subscription program where you can get the company's latest AI-powered devices on a subscription/rental model. Like we said, the name is kind of misleading. Samsung launched its Galaxy AI suite of AI tools last year alongside the Galaxy S24 series. The company later noted that they will eventually start charging users for more advanced features. However, this AI Subscription Club is not the same. Instead, it kind of sounds like the hardware subscription program that Google launched with its Pixel Pass. it also sounds a bit like Apple's rumored iPhone subscription plan which the company later killed off. According to Samsung Electronics Vice Chairman Han Jong-hee, this program will allow users to sort of "rent" a smartphone or tablet by paying a monthly subscription. This would essentially allow users to continuously upgrade their devices to the latest model. It also ensures Samsung a steady stream of revenue from the subscription. Samsung plans to kick off this subscription with its AI-powered Ballie robot in South Korea. It's interesting Samsung is trying this business model out when others have either failed or given up, but only time will tell if this will work out.
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Samsung's new AI Club will let you rent a robot
There are optional maintenance services as part of the subscription Samsung has a new plan to put AI tech in your hands, though not via drone delivery. Instead, it's launching the AI Subscription Club, a program that lets you rent the company's latest AI-powered gadgets for a monthly fee. It's like leasing a car, but instead of a luxury sedan, you get a Galaxy phone or even the AI companion robot, Ballie, which debuted at CES this year. On paper, it sounds great. You get shiny new tech, Samsung gets a predictable cash flow, and everyone walks away happy. But will it catch on? That depends on a few things. First, there's the question of pricing. If the subscription costs rival traditional financing plans or carrier upgrades, it might not feel like much of a deal. Second, there's the whole "ownership vs. rental" mindset. Some people like knowing their gadgets are truly theirs, even if they're a few years behind the latest trend. Despite what "AI Subscription Club" might suggest, this isn't about subscribing to software features, at least for now, as Galaxy AI tools remain free through the rest of the year. The hardware subscription model lets you rent devices like phones, tablets, and robots. Samsung promises this will make staying on the cutting edge more affordable and accessible while also guaranteeing them a steady revenue stream. Subscribers who pay a monthly fee get access to some of Samsung's hardware catalog. It's like leasing a car in some ways. For instance, you can upgrade to new models without selling old devices. If you have an itch for new tech but don't want to pay for it every year or so, it's a good deal. Plus, it comes with optional maintenance services, so if Ballie accidentally rolls off a table or your phone gets an unplanned bath, Samsung has you covered. It's notable that Samsung is pursuing this business model after similar attempts, such as the failure of the Google Pixel Pass. Still, Samsung may see this as the best way to get people to try its more expensive tech, but who don't want to pay the high price for the new toys. Then, if they like it, they may be more willing to fork over the cash. Samsung isn't starting from scratch here. The AI Subscription Club actually began last year as a rental program for home appliances in South Korea. Consumers could subscribe to AI-powered washing machines, refrigerators, and TVs, complete with maintenance services. Expanding this concept to mobile devices and AI gadgets is a natural next step, though it remains to be seen if the same appeal translates to smartphones and tablets. The subscription model also raises an interesting question: are we moving toward a world where we stop owning our tech altogether? Between this and services like Google's Chromebook rentals, it's easy to imagine a future where everything -- from our phones to our fridges -- is "as-a-service." For some, that's exciting. For others, it's a bit dystopian. Either way, it's clear Samsung sees subscriptions as part of its future. For now, the AI Subscription Club is sticking close to home, rolling out in South Korea first. Samsung hasn't confirmed plans for a global launch, but it's not hard to imagine this program popping up elsewhere if it gains traction. And with the Galaxy S25 series expected to debut at the Galaxy Unpacked event later this month, this could be Samsung's way of keeping the buzz alive.
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Samsung to offer 'subscription' service for Galaxy phones, but it's not what you think
The next generation of Galaxy is coming! Reserve your new Galaxy device today ahead of the January 22 launch and receive $50 Samsung Credit when you preorder and purchase the reserved device. Samsung is also offering up to $1,250 additional savings with trade-ins, and a chance to win $5,000 Samsung Credit, too! A report from ETNews states that Samsung's vice chair Han Jong-hee confirmed in a press conference during CES 2025 that AI Subscription Club is coming to Galaxy devices. If you've never heard of this payment model, AI Subscription Club launched in South Korea last month for some of Samsung's home appliances. The company is now readying to apply the model not only to Galaxy phones, but also to Ballie AI, the AI companion robot it plans to launch in the first half of this year.
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Samsung to launch 'AI subscription' on Galaxy phones as soon as next month
Samsung has reminded us time and time again that its Galaxy AI features probably won't be free forever, and right on schedule, the company is reportedly planning to introduce a new "AI subscription" ahead of its Galaxy S25 event. When Samsung introduced Galaxy AI on the Galaxy S24 series, there was an asterisk that suggested Galaxy AI features wouldn't be free permanently. The footnote read: Galaxy AI features will be provided for free until the end of 2025 on supported Samsung Galaxy devices. Different terms may apply for AI features provided by third parties. Samsung reiterated that line several times, but never confirmed any plans to actually implement a subscription. But, apparently, the time has come. As reported by ETNews (via @Jukanlosreve), Samsung's Han Jong-hee mentioned in a press conference at CES 2025 that an "AI subscription" is coming for Galaxy devices "starting next month," referring to February 2025, when the Galaxy S25 series is expected to go on sale. We will apply the subscription service to Galaxy smartphones starting next month. Bollie will be introduced first in Korea and the US, and we plan to supply it as a subscription in Korea. The subscription was mentioned alongside Samsung's"Bollie," presumably a typo for the Ballie robot, which Samsung claims will actually hit the market this year with more AI features. Per Samsung's previous disclaimer, Galaxy S24 and other devices with existing Galaxy AI features will still offer those features for free at least through the end of 2025, but it's very possible Samsung plans to introduce more features that will require a subscription. What do you think of paying for Galaxy AI features? Samsung recently confirmed that the Galaxy S25 series will officially launch on January 22 at an event being held in San Jose, California. Following the event, pre-orders will be opened, but customers can place a free reservation today which will unlock a $50 credit and up to $1,200 in additional savings.
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Samsung Set to End Galaxy AI Freebies with Upcoming Subscription Plans
Supported devices can continue to enjoy AI benefits for free until the end of 2025. With the launch of the Galaxy S24 series, Samsung introduced its own set of Galaxy AI features. However, the company soon confirmed that these AI enchantments won't stay free for long, but we didn't know when the doomsday clock was going to hit 12. Well, now we know when, as the Korean tech giant plans to announce a subscription to its Galaxy AI features sooner than expected. According to ETNews, Samsung's Vice President, Han Jong-hee discussed during a press conference at CES 2025 about the introduction of an "AI subscription club" starting next month. This is when the upcoming Galaxy S25 series will go on sale in global markets after the January 22nd Samsung Unpacked event. It seems that Samsung could also come out with a subscription plan that will bundle Samsung's Care+ protection as well. However, the shoddy translation of the Korean article to English makes it difficult to suggest whether it will be a part of the AI subscription or its own separate thing. But if you are worried about your Galaxy AI features being taken away, then you need not to. According to Samsung's own website, supported devices can continue to enjoy these AI benefits till the end of 2025 for free. So you have almost a year to find another free alternative before the clock runs out. The current set of AI features do feel limited in their ability, which makes me believe that the company could introduce some more powerful AI integration with the S25 series that will make the subscription well worth the asking price. But what are your thoughts on the subject? Will you be willing to pay a monthly fee for Galaxy AI and whether you use it frequently? Let us know in the comments below.
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Samsung announces plans to launch an AI Subscription Club, allowing users to "rent" AI-powered Galaxy smartphones and the Ballie robot through a monthly subscription model, starting in South Korea with potential expansion to other markets.
Samsung Electronics Co. Ltd. has announced plans to launch an AI Subscription Club, a new service model that will allow consumers to "rent" AI-powered Galaxy smartphones and other devices through a monthly subscription 1. This move comes shortly after Apple Inc. paused its own subscription service plans last month 1.
The AI Subscription Club was initially launched in December for select Samsung home appliances in South Korea 2. Samsung's vice chair, Han Jong-hee, confirmed the expansion of this service to Galaxy phones and the Ballie AI robot 3. The subscription model aims to reduce upfront costs for users while offering optional repair and maintenance services 1.
According to Han Jong-hee, the subscription service for Galaxy smartphones will be available starting next month 4. The Ballie AI robot, which was first revealed in 2020, is set to be introduced in Korea and the US in the first half of 2025 2. The company plans to unveil more details during the Galaxy Unpacked event in San Jose, California, on January 22, 2025 1.
The subscription model allows consumers to pay a monthly fee for AI-powered devices, potentially enabling users to continuously upgrade their devices to the latest models 5. While specific pricing details have not been disclosed, the service is expected to cover the cost of the device plus related maintenance services 2.
Ballie, Samsung's round AI home companion robot, is also included in the subscription plan. The robot is designed to entertain pets, activate home routines, project videos, and even assist with workouts 2. A working version of Ballie was demonstrated at CES 2025, though its real-life performance remains to be seen 2.
The concept of hardware subscriptions has been gaining traction as a potential revenue booster for tech companies 1. In South Korea, where the AI Subscription Club was initially launched for home appliances, it reportedly accounted for 30 percent of all consumer electronic goods sold by the Samsung Store in the subsequent three-week period, with customers providing positive feedback 4.
Samsung's move into hardware subscriptions comes after Apple's similar project was halted due to regulatory concerns and internal challenges 1. Google has already launched a hardware subscription program with its Pixel Pass 5. Samsung's approach to include AI-powered devices and robots in its subscription model could potentially set it apart from competitors.
As the tech industry continues to explore new business models, Samsung's AI Subscription Club represents a significant shift in how consumers may access and use AI-powered devices in the future. The success of this program could influence other companies' strategies and shape the future of consumer electronics consumption.
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