THE KOREA ECONOMIC DAILY, GLOBAL EDITION

Samsung Electronics Co. has been battling Apple Inc. in the high-end smartphone segment with its premium Galaxy S series packed with advanced features, including artificial intelligence-enabled functions.

The South Korean tech giant is now taking on its competitors on the other end of the spectrum: budget smartphone makers such as China’s Xiaomi and Oppo, which are increasingly encroaching on Samsung’s turf in the low-cost phone segment in emerging markets.

Samsung plans to apply its Circle to Search function, now available on its premium Galaxy S series smartphones, to the more affordable Galaxy A series smartphones, industry sources said on Friday.

They said that the Korean company will gradually pack its low-end models with AI functions through software upgrades.

The AI-enabled Circle to Search function, jointly developed with Google Inc., was first installed on Samsung’s high-end Galaxy S24 launched earlier this year.

Sources said that the function would initially be available on the Galaxy A35 and A55 smartphones – relatively high-end models among Samsung’s budget smartphone line.

CIRCLE TO SEARCH

Circle to Search is one of the most notable features of the Galaxy S24 series.

It enables users to find real-time information about a product or a person appearing on the Galaxy S24 screen by drawing a circle around an image.

This means users don't need to type in a long question or do a web search to get the information they need – a function that is expected to significantly save time on internet searches and make them more convenient.

For example, if a user comes across a beautiful building while browsing Instagram on a Galaxy S24 and wants to know its location, he can long-press the home button, draw a circle around the building with his finger, and quickly get search results.

CHINA’S XIAOMI, OPPO, VIVO THREATEN SAMSUNG

Samsung’s move to equip its budget smartphones with advanced AI functions comes as the company faces growing competition with low-end smartphone makers such as Xiaomi, Oppo and Vivo, particularly in emerging markets such as Latin America and Southeast Asia.

Samsung’s A series models are targeting price-conscious customers looking for affordable smartphones packed with advanced features.

The Galaxy A53 and A33, for example, are 5G-enabled, fitted with artificial intelligence and boast Super AMOLED displays.

Samsung’s A series phones have been popular in markets such as Latin America, India and other Southeast Asian countries. But Samsung’s market share is declining amid fierce competition from Apple Inc. and Chinese rivals.

According to tech market analysis firm Canalys, Samsung retained its market leadership in Southeast Asia in the second quarter, but its market share dropped by two percentage points to 18%.

Its two closest rivals – Xiaomi and Oppo – each saw their market shares rise to 17%, just one percentage point shy of Samsung’s.

In Vietnam, where Samsung operates a smartphone phone manufacturing plant, Samsung ranks second following market leader Oppo.

Samsung also ranks second in other Southeast Asian markets, including Thailand, Malaysia and the Philippines.

In India, the world’s second-largest smartphone market, Samsung ranks third with its 18.1% market share after Xiaomi’s 18.9% and Oppo’s 18.8% in the second quarter, according to Counterpoint Research.

Analysts said Xiaomi smartphones, including its flagship Redmi Note 13 series, are increasingly popular thanks to their price competitiveness and high tech such as OLED screens.

SAMSUNG TO DOUBLE AI PHONE SALES TO 200 MILLION

Samsung aims to expand its “Galaxy AI ecosystem” by linking its smartphones, smartwatches and smart rings from the low-end to premium levels.

While unveiling the Galaxy S24, which Samsung calls “the world’s first AI phone," earlier this year, the company’s mobile chief TM Roh said mobile devices will become the primary access point for AI and Samsung’s Galaxy smartphone series will play a leading role in broadening the horizons for new consumer experience possibilities.

During a media briefing with Korean reporters at Galaxy Unpacked 2024 in San Jose in January, he said Samsung aims to have at least 100 million of its flagship Galaxy smartphones equipped with a variety of AI features by the end of this year.

Roh said Samsung is now upping the ante by doubling its AI smartphone target to 200 million units by this year’s end.

As part of such an effort, Samsung in July unveiled two new foldable smartphones – the Galaxy Z Flip6 and the Galaxy Z Fold6 – replete with AI functions.

Write to Chae-Yeon Kim at why29@hankyung.com

In-Soo Nam edited this article.