For over a decade, Samsung, the leading chaebol in South Korea, held the title of the world's top smartphone seller, surpassing Apple. However, in a significant shift, Apple overtook Samsung in 2023, claiming a 20.1% share of the global smartphone market for the first time in 12 years.
The decline in Samsung's smartphone shipments by 3.2% in 2023, totaling 1.17 billion units, was attributed to consumer reluctance to upgrade amid rising inflation. Additionally, Samsung faced internal challenges, notably involving its executive chairman, Lee Jae-yong, who was embroiled in bribery and financial crime scandals.
With Lee's legal issues resolved, Samsung is now focusing on artificial intelligence (AI) to compete with Apple in the upcoming smartphone wars. Apple recently introduced Apple Intelligence, a generative AI concept aimed at enticing consumers to upgrade their devices for enhanced AI features.
In response, Samsung unveiled Galaxy AI, its own generative AI features, at the launch of the Galaxy S24 range. Unlike Apple, Samsung is making Galaxy AI available on older devices, such as the S23 and Z Fold5, to reach a wider user base early on.
Despite Apple's recent dominance, Samsung reported a significant increase in operating profit for the second quarter, indicating a potential comeback. Samsung regained its position as the top smartphone seller in the first quarter of the year, driven by a flagship phone launch.
As Samsung gears up for its 'Galaxy Unpacked' event to showcase its AI advancements, the company aims to establish itself as a leader in the mobile AI era, challenging Apple's position in the market.
