This story belongs to the Fortune India Magazine March 2025 issue.
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THE CONSUMER TEC landscape is undergoing a seismic shift, moving beyond flashy pieces of glass and into the realm of artificial intelligence. Two tech titans, Apple and Samsung, are locked in a high-stakes battle to dominate this new era, each placing multibillion-dollar bets on their respective AI strategies: Apple Intelligence and Galaxy AI. Apple Intelligence is a relatively new development, having just started rolling out to users around the world a few weeks ago (an official India launch is expected sometime this year). This contrasts with Galaxy AI, which has been available since its global launch in January 2024, giving Samsung a head start.
Samsung, with its newly launched Galaxy S25 series, is aggressively propagating its “AI companion” vision. T.M. Roh, head of Samsung’s mobile division, emphasised a “privacy-first approach” when Fortune India spoke to him in January on the sidelines of its flagship event, Galaxy Unpacked, in San Jose. Roh stressed that user data processed in the cloud wouldn’t be used for training or advertising, and transparency about on-device vs cloud processing” would empower users to make informed choices.
Apple, meanwhile, is taking a controlled, integrated approach with Apple Intelligence. While leveraging OpenAI’s ChatGPT for complex tasks, it emphasises on-device processing and robust privacy protections. Features like Private Cloud Compute and IP address obfuscation aim to reassure users that their data is safe. Apple’s approach is characterised by its focus on seamless integration within its ecosystem.
However, as Neil Shah, co-founder & vice president-research at Counterpoint Research, says this integration is still a work in progress. “With Samsung, it’s not a challenge as Google which owns the world’s largest data and advanced AI models is ready with deeper integration,” he says, adding that this is where Apple has fallen behind offerings from Samsung or Google.
Agrees Navkendar Singh, Associate Vice President, IDC India. “Samsung has been at the forefront of trying to communicate the everyday life use-cases of AI to the consumer since the launch of the S24 last year… Galaxy AI/Gemini AI has some lead over Apple, certainly, as of now,” he says.
Apple, however, possesses a couple of tricks up its sleeve: a robust ecosystem that keeps users locked in and a vast base of dedicated customers who patiently anticipate new features, often introduced after competitors. Shah adds that when Apple does eventually crack the AI code, the execution is expected to be flawless and intuitive.
User interest in on-device AI is growing as usage increases, becoming a defining factor, especially for GenZ users. In an extensive survey conducted by Counterpoint Research across seven countries, 59% expressed plans to purchase a GenAI smartphone by September 2025.
However, Singh of IDC India says that AI is not the deciding factor for the Indian consumer right now. “AI actions have to become a habit instead of invoking Maps, Google search, etc. When that happens, AI will become an everyday companion,” he says, adding that that day is not too far in the future.
Ultimately, both Apple and Samsung are betting billions on their respective AI visions. Samsung’s early lead, driven by its open collaboration and hybrid approach, positions them well. Apple, while ostensibly playing catch-up, has the blockbuster advantages of a loyal user base, strong privacy controls, cogent marketing and a reputation for seamless integration across its ecosystem. The race is far from over.
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