TM Roh, head of Samsung’s mobile business, talks about the company’s new products at the Galaxy Unpacked event in Paris, France on July 10, 2024. Samsung unveiled a series of new products including foldable smartphones, new smartwatches and the Galaxy Ring.
Arjun Kharpal | CNBC
In a luxury hotel in central Paris, Samsung Electronics’ mobile boss sat behind a suite of the tech giant’s latest products, from foldable smartphones to a brand new smart ring – underscoring how the South Korean company wants to lock in customers to the world of its products to drive sales.
TM Roh is the man tasked with bringing Samsung, the world’s largest smartphone maker, into the age of artificial intelligence.
In a wide-ranging interview with CNBC at this Paris hotel earlier this month, Roh laid out Samsung’s vision for Galaxy AI, its suite of artificial intelligence features, how the company thinks about monetizing software and future products, such as mixed. reality headset.
Galaxy AI push
These include features like Interpreter, which can translate spoken language between two people, and the Notes app, which can record audio, transcribe and summarize what’s been said or noted.
Artificial intelligence has become a key focus for Samsung this year as the company tries to boost sales of its premium devices at a time when consumers are holding onto their phones longer and remain cautious about spending.
“We are strengthening and bringing more AI capabilities to our products. As consumers use more AI capabilities, they can really feel the convenience and benefits they bring,” Roh told CNBC in Korean translated by a company translator.
“I strongly believe that these Galaxy AIs, mobile AIs are a strong motivator and driver for the purchase of new products,” he added.
“Galaxy AI is here” was the slogan plastered on posters at the location of the Galaxy Unpacked launch – the Carrousel du Louvre, a shopping mall and event space near the famous Louvre museum in Paris.
It highlights Samsung’s marketing to tell users that its phones now have AI capabilities, as it appears to fend off Apple’s AI push. The American technology giant announced Apple Intelligence in June, but that set of AI features won’t start rolling out until the fall, and there are many regions where it won’t be available, like China.
But many analysts don’t expect these early AI applications alone to boost new phone sales.
Roh expects the technology to develop over the long term.
“When you think about when the first smartphones and the internet started out it was just a few people… they used smartphones and the internet. But as they go on, as they become more advanced, they become more pervasive in everyday life. And I believe [the] the same goes for mobile AI,” Roh said.
AI monetization
Revenue in Samsung’s mobile business has historically come from sales of various smartphones and other devices. This is contrary to applewhich, in addition to monetizing the iPhone, earns billions of dollars from its software and services.
That’s because Samsung’s phones run Google’s Android operating system, which means Samsung has less control over its software and the ability to promote its own apps. Apple meanwhile owns its proprietary iOS operating system.
Apple’s App Store and Google Play Store are the two dominant app stores of iOS and Android systems, respectively.
As it now begins infusing its own apps with AI, Samsung appears to be making a bigger push into software, including an upgraded version of its Bixby AI assistant due out later this year based on the South Korean company’s big software. language model.
Roh said users typically access different software on mobile through app stores. This may not always be the case with AI in devices as the smartphone becomes more intuitive. That may give Samsung’s apps a chance to become more prominent, and Roh said the company is beefing up its own apps.
“We will promote our native software and applications. So we will provide and improve Samsung’s software and applications for consumers,” said Roh.
That still doesn’t answer the question of how Samsung will monetize these apps.
When asked about whether Samsung will introduce subscription to its AI services, Roh said the company is “listening to the market and consumers” and advice from different experts.
“Subscription can be an option and it can mean that AI features can remain as core technology to attract more consumers to buy the hardware. But whichever way it goes, we will make a wise decision for the sake of consumers and, at the same time, for the sake of Samsung Mobile’s business,” Roh said.
Future products in foldable and mixed reality
Samsung was one of the pioneers in foldable phones, introducing its first such device in 2019. Other companies have since followed suit with their rival products.
Roh hinted that other pieces of hardware could come to market in the future as Samsung looks to expand its product ecosystem. He said the hardware components required for foldable smartphones are improving, as is the associated software.
Asked by CNBC if Samsung will bring foldable screens to other devices, such as tablets, Roh said: “Once the completeness of the hardware and the integrity of the software and content, the ecosystem reaches full maturity, we will be forced to introduce very satisfying and near-perfect foldable new form factors in new product categories.”
He did not specify what those new product categories for foldable displays might be.
Mixed reality came to the fore with the launch of the Apple Vision Pro, the Cupertino giant’s first foray into the product category. Roh recognized that mixed reality devices are “one of the important devices that will introduce a new mobile experience and a new ecosystem.”
He remained tight-lipped about the devices, but told CNBC that Samsung will announce a new “mixed reality platform” later this year. That’s likely to be a software offering, according to Roh, though he declined to elaborate.
