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TM Roh, the top of Samsung’s cell enterprise, talked in regards to the firm’s new merchandise on the Galaxy Unpacked occasion in Paris, France on July 10, 2024. Samsung unveiled a slew of latest merchandise together with foldable smartphones, new smartwatches and the Galaxy Ring.
Arjun Kharpal | CNBC
In a swanky downtown Paris lodge, Samsung Electronics’ cell boss sat behind a set of the tech big’s newest merchandise, starting from foldable smartphones to the model new sensible ring — underscoring how the South Korean agency is trying to lock clients into its world of merchandise to drive gross sales.
TM Roh is the person tasked with bringing Samsung, the world’s largest smartphone maker, into the substitute intelligence period.
In a wide-ranging interview with CNBC at that Paris lodge earlier this month, Roh laid out Samsung’s imaginative and prescient for Galaxy AI, its suite of synthetic intelligence options, how the corporate is considering making a living off software program and about future merchandise, akin to combined actuality headsets.
Galaxy AI push
These embrace options like interpreter, which might translate spoken language between two individuals, and the Notes app that may document audio, transcribe and summarize what has been mentioned or famous down.
AI has grow to be the important thing focus for Samsung this yr, because the agency seems to drive gross sales to its premium handsets at a time when customers are holding onto their telephones for longer and stay cautious on spending.
“We’re reinforcing and bringing extra AI capabilities to our merchandise. As customers use extra AI capabilities, they’ll really really feel the comfort and advantages they convey,” Roh advised CNBC in Korean translated by an organization translator.
“I consider strongly that these Galaxy AI, cell AI are robust motivation and driver for buy of latest merchandise,” he added.
“Galaxy AI is right here” was the slogan plastered throughout posters on the location of the Galaxy Unpacked launch — the Carrousel du Louvre, a shopping mall and occasions house close to the well-known Louvre museum in Paris.
It highlights Samsung’s advertising blitz to inform customers that its telephones now have AI capabilities, because it seems to fend off Apple’s AI push. The U.S. know-how big introduced Apple Intelligence in June, however this set of AI options will not begin rolling out till fall, and there are numerous areas the place it won’t be avaialable, such as in China.
Nonetheless, many analysts do not count on these early AI apps alone to drive new telephones gross sales.
Roh anticipates the know-how will develop over the long run.
“When you consider when first smartphones and the web got here to being solely a handful of individuals … used smartphones and web. However as they progress, as they grow to be extra superior, they turned extra pervasive in day-to-day lives. And I feel [the] identical applies to cell AI as effectively,” Roh mentioned.
Monetizing AI
Income in Samsung’s cell enterprise has traditionally come from gross sales of varied smartphones and different units. This stands in distinction to Apple, which, on high of cashing in iPhone income, makes billions of dollars from its software and services.
That is as a result of Samsung’s telephones run Google’s Android working system, which implies Samsung has much less management of its software program and of the power to push its personal apps. Apple in the meantime owns its proprietary iOS working system.
Apple’s App Retailer and the Google Play Retailer are the 2 dominant app shops of the iOS and Android methods, respectively.
Because it now embarks to infuse its personal apps with AI, Samsung seems to be making an even bigger push into software program, together with an upgraded model of AI assistant Bixby, which is because of launch later this year and is based on the South Korean company’s own large language model.
Roh mentioned that customers usually entry completely different software program on cell by means of app shops. That may not at all times be the case with AI on units, because the smartphone turns into extra intuitive. That will give a chance for Samsung’s apps to grow to be extra outstanding, and Roh mentioned the corporate is bolstering its personal apps.
“We will advance our software program and native apps. So we will present and improve Samsung software program and apps for customers,” Roh mentioned.
That also does not reply the query of how Samsung will monetize these apps.
When requested about whether or not Samsung would introduce a subscription to its AI companies, Roh mentioned the corporate is “listening to the market and the customers” and recommendation from completely different specialists.
“Subscription could be an possibility, and it could actually imply the AI options can stay as a core know-how to entice extra customers to purchase the {hardware}. However regardless of the route will likely be, we will make a smart determination for the sake of customers and, on the identical time, for the sake of Samsung Cell’s companies,” Roh mentioned.
Future merchandise in foldables and combined actuality
Samsung was one of many pioneers in foldable telephones, introducing its first such machine in 2019. Different firms have adopted swimsuit with their rival merchandise since then.
Roh hinted there may very well be different items of {hardware} hitting the market sooner or later, as Samsung seems to broaden its ecosystem of merchandise. He mentioned that the {hardware} parts required for foldable smartphones are enhancing, as is the related software program.
Requested by CNBC whether or not Samsung would convey the foldable screens to different units, akin to tablets, Roh mentioned, “On the time when the {hardware} completeness and software program and content material integrity, the ecosystem involves full maturity, we’ll be compelled to introduce very satisfying and really nearly excellent foldable new kind elements in new product classes.”
He didn’t specify what these new product classes for foldable screens may very well be.
Samsung also has a so-called mixed reality headset in the works. Blended actuality typically refers to know-how like augmented actuality that’s employed in headsets and permits digital photographs to be superimposed over the true world. Samsung, Google and chip agency Qualcomm struck a partnership to develop a combined actuality headset final yr, however no updates in regards to the machine have adopted since.
Blended actuality has been thrust into the highlight with the launch of the Apple Imaginative and prescient Professional, the Cupertino big’s first foray into the product class. Roh acknowledged that combined actuality units are “one of many vital units that can usher in new cell expertise and new ecosystem.”
He remained tight-lipped about units, however advised CNBC that Samsung will announce a brand new “combined actuality platform” throughout the yr. That is prone to be a software program providing, based on Roh, although he declined to elaborate.
