"The Galaxy S24 was the first Samsung model to have Galaxy AI features. Since then, Samsung has heavily marketed the on-device and cloud-based AI tools of the range, such as live translation, generative photo editing, and AI search. He argues that positioning AI as a core selling point rather than background functionality has backfired badly."
"Samsung's AI premium holds up with early adopters but fails in the refurbished market, where mid-range buyers prioritize value over AI branding. Beyond the price barrier, there is a secondary issue of trust: users are comfortable with AI for specific tasks like photo editing, but remain apprehensive about its more intrusive, wide-scale applications."
"Although Samsung has doubled down on AI as a lead feature on its Galaxy devices, this is a common trend across Android smartphone makers, particularly in their premium devices. These days, it is hard for consumers to find premium devices that don't have a significant AI angle in the market and on-device experience."
Samsung's Galaxy S25 suffered a significant 63% resale value loss after 12 months, breaking a multi-year trend of slower depreciation. Compare and Recycle attributes this decline to Samsung's heavy marketing of AI features like live translation and generative photo editing as primary selling points. While early adopters value AI, refurbished market buyers prioritize affordability over AI branding. Consumer trust remains limited to specific AI applications like photo editing, with hesitation toward broader implementations. However, AI integration is now standard across premium devices from multiple manufacturers, making it difficult for consumers to avoid. A CCS Insight survey shows 47% of buyers would pay more for AI features on new phones, though this preference doesn't extend to secondhand purchases.
#smartphone-depreciation #ai-marketing-strategy #resale-value #consumer-trust #premium-device-market
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