In 2024, despite sluggish global sales of Apple's iPhone 16 series, bank analysts are optimistic about a potential reversal through updates to the company's AI service, "Apple Intelligence." The impact of this shift on Samsung Electronics' flagship device, the Galaxy S25, scheduled for launch in spring 2025, is drawing attention.
Apple plans to officially launch Apple Intelligence by the end of 2024, with an upgrade expected in early 2025. Analysts anticipate that this timeline will prompt consumers to start purchasing the new devices. Citing a Citigroup forecast, TheElec reported that iPhone shipments in the first quarter and second quarter of 2025 will exceed previous expectations by 4 million and 7 million units, respectively.
Citigroup also provided a positive assessment of the lead time reduction for iPhones, interpreting it as a sign of improvement within Apple's supply chain. Typically, shorter lead times indicate lower demand and a reduced likelihood of strong sales; however, Citigroup offers a new interpretation of this phenomenon.
Among the already revealed features of Apple Intelligence are writing tools capable of automatically writing, summarizing, and proofreading articles, along with generative AI-created emojis called "Genmoji," and an enhanced version of "Siri."
While the iPhone 16 emphasizes Apple Intelligence capabilities, it currently lacks support for many languages, leading to criticisms of it being an "unfinished AI smartphone." However, Apple intends to address this issue by updating Apple Intelligence in 2025 to include support for languages such as Chinese, French, Japanese, Spanish, and German, thereby formally expanding the range of its AI service offerings.
Notably, the budget-friendly iPhone SE4, rumored to be launched in the first quarter of 2025, is also expected to feature Apple Intelligence. The iPhone SE series offers lower specifications in exchange for more affordable pricing, making it an attractive alternative for consumers hesitant about purchasing the pricier iPhone 16 series.
The potential impact of Apple's advancements on Samsung's AI smartphones remains a point of interest. Samsung's first AI smartphone, the Galaxy S24, was released in early 2024 and broke sales records in South Korea, becoming the fastest to surpass 1 million units sold. Reports indicate that total sales of Samsung's AI smartphones, including the foldable Galaxy Z Fold6/Flip6 series launched in July 2024, have reached 20 million units.
Samsung's AI service, "Galaxy AI," currently supports 16 languages and is set to expand to 20 languages by the end of 2024. It is rumored that the upcoming flagship Galaxy S25 will incorporate more AI functionalities, such as features designed to extend battery life.
Industry sources suggest that the entire Galaxy S25 series will be equipped with Qualcomm's new flagship mobile platform, the "Snapdragon 8 Gen4," which may allow it to surpass Apple in AI service capabilities. However, some speculate that the higher unit cost of Qualcomm Snapdragon chips, approximately double that of Samsung's own Exynos AP, could affect revenue performance.
Industry sources have pointed out that consumers aged between 20 and 39 show a preference for Apple's iPhone, presenting a challenge for the Samsung Galaxy camp.
Samsung has released the preliminary financial results for the third quarter of 2024, reporting a revenue of KRW79 trillion (approx. US$7.42 billion), reflecting a quarter-over-quarter increase of 6.66% and a year-over-year increase of 17.21%. However, operating profits stood at KRW9.1 trillion, marking a quarter-over-quarter decrease of 12.84% but a 274.49% year-over-year increase. Notably, the underperformance of Samsung's semiconductor business and disappointing sales figures for the Galaxy Z Fold6/Flip6 were highlighted.
Article translated by Jack Wu
