Samsung Electronics (OTC:SSNLF) is actively negotiating with OpenAI and Perplexity AI to bring a broader range of AI services to its next-generation Galaxy devices. The company aims to move beyond exclusive reliance on Alphabet (NASDAQ:GOOGL) Google’s Gemini model.
According to Choi Won-Joon, president and COO of Samsung’s mobile division, the company plans to offer more AI-powered choices in its upcoming Galaxy S26 smartphone lineup, Bloomberg reported on Friday.
While Samsung’s current models, like many Android phones, rely heavily on Alphabet’s AI, the company now seeks to diversify its offerings.
Also Read: iPhone Sales Bounce Back In China, But Huawei And Xiaomi Intensify Pressure
In a related development, Bloomberg News reported in June that Samsung is nearing the finalization of an investment deal with Perplexity AI. This agreement would see the startup’s AI assistant and application seamlessly integrated into future Samsung devices.
Competition Heats Up: Foldables and Chipsets in Focus
Choi also expressed support for increased competition in the foldable phone market, as Samsung anticipates Apple’s (NASDAQ:AAPL) long-awaited entry into the category.
Apple is widely expected to unveil its inaugural foldable iPhone next year, reportedly drawing inspiration from Samsung’s established Galaxy Z Fold design.
Concurrently, Samsung is evaluating its application processor strategy for the Galaxy S26, weighing the adoption of Qualcomm (NASDAQ:QCOM) chips against its proprietary Exynos 2600.
This assessment follows Samsung’s recent decision to equip the newly launched Galaxy Z Flip 7 with its Exynos chipset, marking a notable first for its foldable line.
Chinese OEMs Embrace Google AI
Meanwhile, Chinese smartphone manufacturers are increasingly turning to Google’s AI to stay competitive against global leaders like Apple and Samsung.
At MWC 2025 in Barcelona, prominent Chinese brands including Xiaomi (OTC:XIACY), Honor, and Oppo showcased new AI-powered handsets featuring Google’s Gemini. The phones showcased tools like AI photo erasers and virtual assistants for tasks like bookings.
Nicole Peng, VP at Canalys, observed that Chinese brands’ adoption of Google’s AI stems from its extensive capabilities and global reach, a strategy that aligns more closely with Samsung’s diversified approach rather than developing independent solutions. Peng emphasized that Google is poised to be a primary beneficiary of this growing trend.
Market Dynamics: Apple Leads, Samsung Holds Strong
In the first quarter, Apple commanded the global smartphone sales landscape with a 19% market share, propelled by strong demand for the iPhone 16e and robust growth in key emerging markets like India and Japan. Samsung followed closely with an 18% share, bolstered by the performance of its S25 and A-series models.
Counterpoint Research reported a 3% overall market growth for the quarter, attributing the expansion to strong performance in China and other emerging regions, which offset declines in more developed markets. IDC recorded a 1.5% rise in global shipments, noting Apple’s strategic stockpiling of iPhones in the U.S. in anticipation of potential tariffs from the Trump administration.
Looking ahead, Counterpoint projects a market decline in 2025, largely due to demand suppression stemming from tariff-related uncertainty, particularly in the U.S. Following Apple and Samsung, Xiaomi, Vivo, and Oppo secured the subsequent top positions in market share.
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