The Samsung logo is displayed in Paris. Photo by Reuters.
Samsung Electronics has just introduced its new Galaxy S25 smartphones, featuring Qualcomm’s advanced chips and Google’s AI technology. This move aims to boost sales by integrating cutting-edge AI features, helping Samsung stay competitive against Apple and Chinese rivals.
At an event in California, the tech giant also gave a sneak peek at a slimmer version of the Galaxy S25. The Galaxy S25 Edge is expected to hit stores in the first half of this year, just ahead of Apple’s own slimmer iPhone release.
Despite being the first to launch an AI-powered smartphone, Samsung failed to reclaim its top position in the global smartphone market last year. The company faced stiff competition from Apple in the high-end market and Chinese brands in the budget segment.
Park Ji-sun, the executive vice president of Samsung’s Language AI team, confidently stated, “We are one step ahead of the industry in terms of offering AI features. I believe we are going in the right direction.” Samsung is sticking with its pricing for the Galaxy S25 series, ranging from $799 to $1,299.
The Galaxy S25 features Google’s Gemini AI engine as its default, alongside Samsung's own upgraded voice assistant, Bixby. The two tools work together, with Bixby playing a central role in Samsung’s broader ecosystem, which includes mobile phones, TVs, and home appliances.
However, analysts like Thomas Husson from Forrester believe that standing out with Bixby could be a challenge for Samsung. “There’s no killer app that will make people say, ‘This is the AI smartphone I need.’” Nevertheless, he believes AI could still positively impact Samsung’s brand, creating a “halo effect” around its products.
Samsung’s new Galaxy S25 offers a more tailored AI experience. Its “Now Brief” service provides users with personalized recommendations based on stored data, which is kept private. This feature displays things like calendars, news, and even home details like air temperature and carbon dioxide levels. Additionally, the phone can perform multiple tasks in a single command, such as finding sports events and adding them to a calendar.
Despite the excitement surrounding the launch, Samsung’s stock fell by 1.1%, underperforming the market’s 0.4% drop. A key change this time is that Samsung’s Galaxy S25 lineup will use Qualcomm’s Snapdragon 8 Elite Mobile Platform, instead of the company’s own Exynos chip. This marks a significant shift in strategy for Samsung, which previously used both to negotiate better deals with suppliers. The move is seen as a setback for Samsung’s chip business, which relies heavily on mobile devices as a major customer.
Samsung hasn’t disclosed why it made this change, but sources suggest the Exynos chip might be used in foldable phones launching later this year. Samsung is looking to boost sales in its foldable phone market, which has faced increasing competition from Chinese brands.
The upcoming Galaxy S25 release is crucial for Samsung, especially since its foldable phone sales have slowed. Recent figures revealed that Samsung’s fourth-quarter profit was lower than expected, mainly due to high chip development costs and fierce competition in the smartphone industry.
