Samsung Electronics, currently engaged in a fierce battle with Apple, finds itself in a situation where it needs to pay attention to South Korea's leading telecom provider, SK Telecom (SKT). The AI assistant 'A-Dot' from SK Telecom is stepping in to address the features that were considered weaknesses in iPhones, diluting the unique appeal of Samsung's Galaxy.
Following the launch of Apple Pay in March, A-Dot introduced the 'A-Dot Interpretation Call' service, supporting real-time translation during phone calls. iPhone users enthusiastically welcomed this feature, and it overlaps with the anticipated 'Real-time Interpretation Call' feature, touted as a weapon for the upcoming Samsung flagship 'Galaxy S24' (Gal S24) series. Although both companies do not expect an immediate shift in market share, they cannot hide the challenges they face.
A-Dot's New Feature: Real-time Interpretation Call
According to industry sources on the 19th, SK Telecom recently released the 'A-Dot Interpretation Call,' about a month before the expected launch of Samsung's Galaxy S24.
The A-Dot Interpretation Call supports four languages: Korean, English, Japanese, and Chinese. It provides real-time interpretation during phone calls, marking the first implementation of this feature in South Korea. This service enables foreigners with limited proficiency in Korean to make calls to government offices or hospitals for document issuance or appointment scheduling. Conversely, Koreans traveling abroad can efficiently use the service to book hotels or restaurants.
A-Dot users can select their preferred language for interpretation by pressing the interpretation call icon at the bottom of the dialer when making a call. Once connected, an audio prompt informs both parties that the conversation will be translated by the interpreter, and the interpretation service begins.
Notably, this feature is expected to be a strong selling point for the Galaxy S24, marking a significant differentiator from the iPhone.
In November, Samsung unveiled its self-developed generative AI, 'Samsung Gauss,' introducing the concept of 'On-Device AI.' This on-device AI processes information internally, allowing for quick handling of tasks such as email composition, document summarization, and translation without the need for an internet connection. Samsung hinted at the inclusion of real-time interpretation call functionality, with the Galaxy S24 series expected to be the first model to showcase this feature in early 2023.
While the on-device AI on the Galaxy S24 is hardware-dependent, A-Dot from SK Telecom operates as an app-based service for calls. This structural difference is expected to influence the speed of interpretation, becoming a crucial factor for consumers.
This is not the first instance of an uneasy coexistence between Galaxy and A-Dot. One of the reasons Galaxy users resisted transitioning to iPhones was the convenience of payment and call recording.
A-Dot's Impact on Smartphone Market Dynamics
SK Telecom's A-Dot, with its new features, is perceived to have a considerable impact on smartphone market share, particularly among iPhone enthusiasts.
According to market research firm Counterpoint Research, Samsung dominated the smartphone market with an overwhelming 84% market share in the third quarter of this year, driven by the release of new foldable phone models. In contrast, Apple secured a 15% market share. However, with the release of the 'iPhone 15' series in the fourth quarter, Apple's market share is expected to soar into the 30% range.
The Galaxy S24 series shoulders a heavy responsibility to suppress the iPhone's popularity in the first quarter of next year, and A-Dot emerges as a variable in this equation.
Samsung has not exhibited any specific response to these developments. As SK Telecom's future flagship AI service, A-Dot plays a crucial role in enhancing competitiveness in the AI field, aiming to achieve 9 trillion won in AI-related revenue by 2028. Observing the reactions of major smartphone manufacturers is inevitable for SK Telecom to stay ahead in this rapidly advancing sector.
Amid this intricate situation, signs of an unusual relationship between Samsung and SK Telecom have been detected.
Samsung introduced the 'Galaxy Perfect Program' as a strategy to appeal to younger customers through the Galaxy brand. This program offers the 'Galaxy S23 FE (Fan Edition),' a high-spec mid-range smartphone priced in the 800,000 won range, with the promise of a 50% refund of the purchase price when returned after two years of use.
This promotion heavily relies on support from all three telecommunications companies. The initial subscription involves filling half of the smartphone's cost with the carrier's official subsidy. KT is currently the only carrier operating the Galaxy Perfect Program, and LG Uplus is expected to join soon. However, SK Telecom is reportedly showing reluctance in the negotiation process, and its maximum subsidy for the specific model is only 170,000 won.
An industry insider commented, "They seem hesitant due to the perceived cost burden," highlighting SK Telecom's cautious stance as the only major carrier not fully embracing this model.
In the midst of this complexity, A-Dot's new features, heralded as good news for iPhone enthusiasts, are anticipated to have a considerable impact on South Korea's smartphone market share. The success of the Galaxy S24 series and the influence of A-Dot as a variable in this competitive landscape will become clearer as time progresses.