Samsung-Baidu Partnership – Will it Resuscitate Galaxy S24 Sales in China?

In a bid to reignite its presence in the fiercely competitive Chinese smartphone market, Samsung Electronics joined forces with Baidu AI Cloud to integrate advanced AI functionalities into its latest Galaxy S24 series. However, initial reactions from consumers and industry experts suggest that this partnership may not be the silver bullet Samsung hoped for in its quest to reclaim lost market share in China.

Samsung-Baidu partnership unveiled

Under the banner of innovation, Samsung’s China division and Baidu AI Cloud unveiled a strategic partnership aimed at bolstering the AI capabilities of the Galaxy S24 series. Rolled out alongside the handset’s launch in mainland China on January 25, the collaboration promised tailored AI functionalities catering to the unique preferences of Chinese users. Among these features were real-time call translation and a novel “Circle to Search” feature, leveraging Baidu’s extensive search engine infrastructure and its large language model (LLM) Ernie.

Despite the promising advancements touted by Samsung and Baidu, the Galaxy S24 series failed to capture the enthusiasm of mainland consumers. Within the initial week of its release, social media platforms buzzed with critiques highlighting the shortcomings of the AI functionalities tailored for the Chinese market. One Weibo user, Sun Weilun, bemoaned the stark disparity between the mainland and overseas versions of the device, particularly noting the inferior performance of the “Circle to Search” feature powered by Baidu compared to its Google-powered counterpart. Such sentiments were echoed by Richard Zhang, a Beijing resident, who expressed intentions to procure an overseas variant of the Galaxy S24 to access superior AI services.

The rise of domestic competition and market realities

While Baidu stands as a formidable ally for Samsung in its AI endeavors, the road to market resurgence in China remains fraught with challenges. Domestic smartphone vendors, including Huawei, Oppo, and Vivo, have aggressively pursued the development of their own AI capabilities, intensifying competition in the sector. The battleground has now expanded beyond hardware prowess to encompass the realm of AI ecosystems, where Samsung finds itself embroiled in a fierce struggle for relevance.

Industry analysts offer sobering perspectives on Samsung’s prospects in China. Ivan Lam, a senior analyst at Counterpoint Research, suggests that AI advancements alone are unlikely to yield immediate dividends for Samsung in the Chinese market. While acknowledging the company’s commitment to sustained operations in China, Lam remains cautious about the potential for a significant shift in Samsung’s market standing. Similarly, Peng Peng, an analyst at TechInsights, points to Samsung’s pricing strategy as a potential obstacle to competitiveness in China. With the Galaxy S24 priced notably higher than its predecessor within the Chinese market, Samsung risks alienating cost-conscious consumers and ceding further ground to domestic rivals.

As Samsung navigates the complexities of the Chinese smartphone landscape, questions linger regarding the efficacy of its partnership with Baidu and the viability of its AI-centric strategy. Will the Galaxy S24 series manage to carve out a niche amidst fierce domestic competition, or will Samsung find itself relegated to the periphery of China’s lucrative smartphone market? Only time will unveil the answers to these pressing inquiries, as Samsung contends with formidable adversaries and shifting consumer preferences in its quest for redemption.