Apple and Samsung's approaches to selling generative AI differ widely.

Samsung and Apple Dive Into Generative AI: A Tale of Two Approaches

As the world’s two biggest smartphone manufacturers, Samsung and Apple have fully embraced the potential of generative AI. Samsung showcased its commitment during a recent launch event where the company unveiled new foldable smartphones, emphasizing the advantages of its Galaxy AI platform. Meanwhile, Apple dedicated much of its WWDC event in June to highlighting how generative AI will enhance its iPhones.

Different Strategies for AI Integration

Despite accounting for 36.6% of the global smartphone market in the second quarter of 2024, Samsung and Apple have chosen distinct paths to integrate generative AI into their ecosystems. Samsung’s strategy involves swiftly increasing the user base for its Galaxy AI services, thereby encouraging developers to create applications for the platform. The available features on Samsung’s Galaxy S24, S23, and S22 models, along with three generations of foldable phones, are expected to be on some 200 million devices by the year’s end.

Conversely, Apple restricts its generative AI features to its top-tier models, specifically the iPhone 15 Pro and iPhone 15 Pro Max and future iterations. Apple aims to boost near-term iPhone sales by enticing users interested in AI applications to upgrade sooner than they might have planned.

Challenges in Proving AI's Worth

Both companies face the challenge of convincing consumers about the value of generative AI apps, a process that could take time. According to industry expert Ryan Reith, most smartphone purchases through 2025 are anticipated to occur irrespective of AI features, as consumers may not immediately feel the need for these advancements.

Samsung vs. Apple: The AI Race

Samsung was quicker off the mark in the AI arena, launching its Galaxy AI platform with several of Google’s AI apps alongside the Galaxy S24 in January. Reports indicate that 77% of S24 users engage with its AI capabilities at least once weekly. Popular among these features is Google’s Circle to Search, allowing users to identify or translate objects and text through photos.

Samsung also offers AI-powered translation, transcription, text composition, and photo editing apps. While transcription has proven to be particularly useful, photo editing functions, though impressive, seem more novelty than necessity at this stage.

Samsung’s broader strategy involves getting AI features into as many hands as possible to attract developers. According to Bob O’Donnell of TECHnalysis Research, this leap in user base aims to stimulate developer interest in creating new apps for the platform, thus motivating users to choose Samsung devices.

Apple’s Aggressive Timeline

In contrast, Apple’s approach is more immediate. The company aims to drive sales of its next-generation iPhones upon release, likely this September. Given the iPhone’s crucial role in Apple’s lineup, this strategy is designed to reverse sales declines seen in 2023 and early 2024. While this could jumpstart a new sales cycle, it also means a smaller initial user base for its AI offerings, potentially affecting developer enthusiasm in the short term.

Consumer Understanding of Generative AI

For all the excitement around generative AI, consumer understanding remains a hurdle. Despite Samsung’s promising early usage statistics, the figures are less impressive when considering the frequency with which people typically use their phones. Feedback from personal circles suggests a general confusion around the practical benefits of generative AI in smartphones.

The coming months will be crucial as Apple showcases its AI vision during its anticipated iPhone launch event, and as Samsung and Google refine their messaging and feature sets. The tech world watches closely to see how these AI integrations will shape consumer experiences and preferences in the future.