Despite some glitches, a Worldpanel ComTech study shows 25% of Galaxy S24 buyers say AI is key reason to buy
Smartphone brands like Samsung and Google that successfully market “halo” artificial intelligence (AI) features in their devices can influence consumer behaviour, according to the latest Worldpanel ComTech study, which began tracking AI as a driver for smartphone purchasing across its global markets in February 2024.
When Samsung announced in late February that its new Galaxy S24 series would be “Powered by Galaxy AI”, it promoted a range of AI features ahead of the device’s latest hardware, think camera and screen capabilities, during the launch event.
According to Worldpanel ComTech’s preliminary data across European 5 (France, Germany, Great Britain, Italy and Spain), US and in Australia (to February 2024) this marketing strategy is already influencing consumer behaviour and will have the marketing departments of most mobile operators taking notice.
One in four Galaxy S24 buyers said that AI was a key reason they chose their phone (27% among Australian buyers) compared to 6% of all smartphone buyers. Among this group, 28% wanted real-time translation, 24% wanted camera enhancements and 17% wanted “circle to search” (where an image is circled to trigger a web search) – all features that have been heavily marketed by Samsung ahead of and during the launch.
Nervous times
The impact of “AI on device” comes despite Samsung’s flagship model having several glitches requiring firmware updates. In one of the latest, and reported by Mashable, the AI-heavy One UI 6.1 update for devices came to the newer Samsung Galaxy S24 models earlier this year seemingly without a hitch. But once this AI-filled update was rolled out to the older devices on 28 March, users began experiencing issues where the touchscreen display was being unresponsive.
Samsung took to a community forum in Korea to point the finger at Google: “Due to compatibility issues with some Google app features (Discover), the app developer is improving related servers and apps.”
That leaves operators needing to decide how hard to push AI but Deutsche Telekom for one is certainly not phased. At MWC, the operator demonstrated the concept on its own-branded T Phone. An AI-based assistant replaces all the apps on smartphones so that people can access what they need through a “generative interface” via voice or text.
DT is working with Brain.ai and Qualcomm to develop the technology in Europe and the US. CEO Tim Höttges declared in 5-10 years smartphones won’t use apps anymore.
Not just Samsung
Google also announced a range of AI features in its latest Pixel 8 range, with its 2024 Superbowl advertisement promoting “Guided Frame”, an AI-generated audio cue to help those who have poor visibility when taking photos. Worldpanel ComTech’s data shows that this has had an impact on consumer motivation, with Pixel buyers over-indexing citing AI as a preferred feature over a normal smartphone.
“As more smartphone manufacturers develop, embed and successfully convince customers of the benefits of generative AI, we will start to see a shift in consumer awareness and behaviour,” said Worldpanel global consumer insights director Jack Hamlin.
“Whether AI will drive greater sales volumes is not yet clear, but consumers motivated by AI functionality will behave differently when buying a new device. What we could start to see is manufacturers packaging exclusive AI features into subscription offers, charging consumers to access them and building a new revenue stream,” he said.
Hamlin said educating consumers about AI features and the benefits they could bring can influence decision making. But the question is whether consumers would purchase their handset anyway, and AI features only offering a residual benefit? And this question is one that is vexing Apple which is behind on AI.
“With iPhone sales at a record high in most markets, Apple’s decision not to rush into AI doesn’t appear to be affecting sales yet. It will be interesting to see how this plays out,” he said.