Unless you’re an investor, company earnings calls can be dry, but in the tech world they can offer interesting glimpses into a brand’s future gadget plans.
That’s true of Samsung, as it often gives us tidbits like the confirmation of upcoming tablet releases. But even in the tech world, not all news is good news.
Samsung recently had its latest earnings call, and so we can supplement the Galaxy S27 rumors we’ve been hearing with hints from the company. However, the news has me worried about the upcoming phones.
What did Samsung actually say about the Galaxy S27 series?
It’s not all bad news, but there’s some
Samsung said things about the Galaxy S27 series and future releases that I think are good news. For example, it pledged to expand its foldable lineup further ( Galaxy Z Slide, anyone?) and named-dropped the TriFold.
The brand also said it’ll “enhance the distinct character of each model” in the S series, which I take to mean the Galaxy S27 and S27 Plus will have more differences than before. It also points to the S27 Pro being real.
So what am I complaining about? It’s what the brand said about artificial intelligence. It said, “We will advance Galaxy AI-centric features, offering richer, more intuitive AI-powered experiences that better interpret users’ contexts and intentions.”
Clearly, Galaxy AI is still at the forefront of Samsung’s mind; that’s what it thinks buyers want in their new phone. That’s not just the message for investors; based on interviews with Samsung officials over the last year, it’s certainly its main focus.
However, the tech tide is turning on AI, and the divisive feature may not sell phones anymore.
The winds are blowing the other way on AI in smartphones
Buyers and tech investors aren’t convinced
I’ve tested countless Samsung phones, including four big-name models this year, and I’ve yet to be convinced by Galaxy AI.
Now Nudge is meant to give you contextual links based on messages and notifications, but it rarely does. Now Brief is supposed to summarize all your info, but instead it’s just a more roundabout way to look at your notifications.
According to a recent study by 451 Research, only 26% of buyers would change from their current phone maker to get access to certain AI tools, and a study from Circana at the start of the year found that over a third of phone buyers actively dislike AI.
Among more engaged tech fans, CNET ran a study of its readers and found that 11% of U.S. readers letAI features sway their buying decision. That means 89% don’t care about AI.
The idea that companies are overhyping AI is catching on: publications like Reuters and The Guardian have pointed to cooling attitudes toward AI as the primary cause of a massive tech stock sell-off at the end of October.
It’s worth noting that, per the earnings call, Samsung is one of the tech companies still boasting profits; it said its operating profit is up 780% year-on-year, to the equivalent of $80 billion.
So the big AI stock sell-off isn’t a reflection of Galaxy AI, and Samsung seems to be weathering the storm. But that doesn’t change that buyers still aren’t impressed by the feature.
There’s a lot more to a smartphone than AI features
Show me the hardware
A lot of important smartphone features went conspicuously unmentioned when Samsung hinted at its Galaxy S27 plans. I’m talking about the boring but important things that make the phone actually tick.
The reason is clear: the brand plans to keep the S27 similar in many ways to the Galaxy S26. It’s unsurprising since the brand generally opts for iterative updates rather than total overhauls for its S series.
It’s also a shame, though, because some hardware advances would go a long way. Samsung’s studies show that battery life is the most important feature for buyers, yet its phones consistently underperform compared to rivals.
I’ve been struck that the brand has been downgrading the cameras in its Ultra flagships for several years; what happened to the amazing 10x zoom like in the Samsung Galaxy S23 Ultra?
Some mention was made of hardware features in the earnings call, specifically Privacy Displays and battery life, but the lack of specifics on the latter means I’m a little skeptical.
More cynical readers (and seemingly every member of the r/samsung subreddit) may point out that it’s cheaper for Samsung to add some new AI-powered features rather than hardware improvements, but it’s not solely a cost-cutting operation.
It’s no secret that tech is getting really expensive, thanks to the ongoing chip shortage (used for AI data centers). Keeping costs low isn’t solely to benefit the bottom line, but to keep its phones relatively affordable.
The hardware-AI conundrum doesn’t have an easy solution
Samsung’s in a bind: does it offer big hardware advances but bump prices up by a sizable amount? Or keep the handsets similar, so it can continue selling them at comparatively low prices? You can see why it’d choose to focus on features, which don’t cost more to add.
That doesn’t alter the fact that buyers still aren’t that interested in AI, making the new Galaxy S27 less interesting if that’s all we’re getting. I’m worried about the new phones; we’ve had too few meaningful Galaxy upgrades in recent years to take another AI year.
I’m not writing off the phones, though, because Samsung’s surely aware of people’s AI tolerance dwindling. I bet it’ll come in with another feature to completely wow us, like the S26 Ultra’s Privacy Display, to make sure its handsets are still interesting.
