Samsung bets on generative AI to drive smartphone growth as it unveils Galaxy S24 series


Alvin R Cabral
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Samsung Electronics has unveiled the next generation of its Galaxy S flagships loaded with generative artificial intelligence features, betting on the technology's uptake during a period of uncertainty for the global smartphone sector.

The South Korean tech giant introduced the Galaxy S24 series, powered by the new Galaxy AI platform, at its first Unpacked event for 2024 on Wednesday.

For the fifth straight year, three devices were revealed – the entry-level Galaxy S24, the Galaxy S24+ and the premium Galaxy S24 Ultra.

The S24 and S24+ have been redesigned, and now sport flat edges, which is a departure from their signature curved shape.

The high-end Galaxy S24 Ultra, which basically inherits its predecessor's form, now has a frame made of titanium – a stronger yet lighter material that was also used by Apple in its iPhone 15 Pro models released last September.

Galaxy AI, meanwhile, is underpinned by Samsung's Gauss machine learning platform, which it launched in November – signalling its official entry into the generative AI race and intent to challenge ChatGPT.

One of its features, Circle to Search, was announced by Google this week, allowing users to search for information on their Android smartphones without switching apps.

This can be done by using intuitive gestures such as circling, highlighting, scribbling or just tapping, the company said. It will also be available on Google's own Pixel 8 and Pixel 8 Pro smartphones.

Samsung will showcase more details about Galaxy AI through experience zones at select cities across the world – Dubai included – which will be opened after the Unpacked event.

Galaxy AI is aimed at helping users with certain tasks, such as live translations, transcriptions in chats and calls, and editing images and searching with them.

Samsung is keen to "open a new era and transformative force ... to create and elevate the things we do and allow for greater aspirations", T.M. Roh, the president of Samsung's mobile division, said in his keynote.

"AI will bring a out great change ... we believe the Galaxy devices will democratise this change [as] mobile devices become the primary access point for AI."

Mr Roh also announced that starting with the Galaxy S24, users will be able to avail of seven years of security updates.

The global smartphone market, after years of steady growth, is in a tepid phase as consumers hold back on purchases, mainly because of inflationary concerns.

However, the industry is showing initial indications of a marginal rebound in 2024 following two consecutive years of decline.

Global smartphone shipments, which declined 12 per cent yearly in 2022, are expected to have dropped 5 per cent in 2023 before returning to a 4 per cent year-on-year growth in 2024, according to new forecasts from researcher Canalys.

Industry players are hoping that generative AI will lead to a revival of interest from consumers.

Smartphones powered by generative AI are expected to have taken a 4 per cent share of the total market in 2023, or about 47 million shipments, and this is likely to double this year, according to Counterpoint Research.

Samsung would capture half of this market this year followed by Chinese manufacturers Xiaomi, Vivo, Honor and Oppo, it added.

That would support Seoul-based Samsung's position in the overall smartphone industry, which it had led since 2010 – until it was knocked off by Apple in 2023, the International Data Corporation reported this week.

Samsung 'very serious' with generative AI

Generative AI shot into the limelight in 2023 with the introduction of GPT, developed by Microsoft-backed OpenAI. Initially a method for conversation and creating content such as images and videos, the technology is now being incorporated into more devices.

As a result, major technology names joined the fray, including Oracle, Amazon and X owner Elon Musk, who created his own generative AI company xAI.

Apple chief executive Tim Cook, meanwhile, acknowledged that the company was already working on generative AI.

There are no solid indications, however, that the next iPhones, expected to be unveiled in September, will feature this capability – although in April last year it was reported that Apple was working on improvements to its long-time digital assistant Siri to catch up with ChatGPT.

“We have AI not only for mobile devices, but across our ecosystem … how we collaborate as an open ecosystem with the rest of the big players in technology [and] make sure that the consumer has the best experience [is] something that we can offer,” Omar Saheb, chief marketing officer of Samsung Middle East and North Africa, told The National in San Jose.

“Samsung is very adamant about AI. Galaxy AI is going to enable all the communication between devices and smart things. We are very serious about AI.”

Mr Saheb also made Samsung's position clear on the debate on regulating generative AI. Authorities have been scrambling to gain hold of the technology that has sparked concerns ranging from misinformation to copyright infringement.

For instance, images edited using Galaxy AI are given watermarks to indicate the originals have been manipulated.

Samsung supports the responsible development of AI and will actively participate in ongoing global conversations about regulatory needs as the technology evolves,” Mr Saheb said.

“We are committed to collaborating with other industry leaders and organisations to ensure AI technology in ways that deliver the best outcomes for our users and for society at large.”

Live translation and other similar actions are solely done on Samsung's phones, so “nothing goes to the cloud and all privacy is contained on the device”, he said.

“The open collaboration with all the other big players about how to make sure that infringement and copyright are being taken care of through this.”

Prices of the Galaxy S24, Galaxy S24+ and Galaxy S24 Ultra will start at $799, $999 and $1,299.

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In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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THE BIO

Ms Al Ameri likes the variety of her job, and the daily environmental challenges she is presented with.

Regular contact with wildlife is the most appealing part of her role at the Environment Agency Abu Dhabi.

She loves to explore new destinations and lives by her motto of being a voice in the world, and not an echo.

She is the youngest of three children, and has a brother and sister.

Her favourite book, Moby Dick by Herman Melville helped inspire her towards a career exploring  the natural world.

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Updated: January 18, 2024, 7:46 AM