Will AI save the smartphone?

Hi there, it’s Yoolim writing from San Jose, where Samsung is gearing up for one of its more anticipated phone launches in years. But first. [View in browser]( [Bloomberg]( Hi there, it’s Yoolim writing from San Jose, where Samsung is gearing up for one of its more anticipated phone launches in years. But first... Three things you need to know today: • Microsoft overtook Apple as [world’s most valuable stock]( • NASA found no evidence of [drug use at SpaceX]( • Musk wants [more control]( over Tesla. Samsung’s AI moment Samsung Electronics Co. is preparing to take the wraps off its latest flagship Galaxy smartphone [this week](— the latest in a lineup that’s anchored its consumer business since 2009. This year, the “Unpacked” coming-out party is generating more attention than usual. That’s because many in the industry regard the device as among the first of a crop of new gadgets that will (try to) embrace AI to its fullest. This year, the debut takes place in San Jose — close to the heart of the AI boom that many regard as ushering in the seminal technology of the coming generation. In a departure from the norm, Samsung is unveiling the flagship earlier than its typical February timeframe. Samsung’s remained tight-lipped about what new stuff the phone — informally dubbed the S24 -- can do. But based on the speculation, it would appear the Korean company’s going to try and lean into that trend. Samsung’s shown us a glimpse of at least one new feature: Its latest device will come with built-in, live voice and text translation. In theory, that means a New Yorker could call someone in Brazil and both would hear their native languages of English and Portugese — in real time and without the need for a third-party app, or even for the data to get processed through a remote server, Samsung said. More is in the works. The world’s largest smartphone maker is reportedly working with a plethora of partners to add AI features. During this month’s CES, Samsung teamed up with Marvel Studios for a marketing campaign centered on the [Las Vegas Sphere](, featuring Doctor Strange. More on that [later](, an executive said. It’s teased some new capabilities via video. One mentions “[Zoom with Galaxy AI is coming](,” hinting at enhanced camera features. There’re other reasons why 2024’s Unpacked bears higher stakes than usual. Phone sales have been on the decline in recent years as slower advancements discourage frequent upgrades. The advent of AI might change the perception that the smartphone era has plateaued, and inject some much-needed excitement into the category in 2024. Apple Inc. plans to announce its own AI offerings, as my colleague Mark Gurman [previously reported](, during the Worldwide Developers Conference in June. It’s been [testing a large language model since early last year](. It remains to be seen how AI can transform our familiar phone experience. But the hope is real. Counterpoint Research estimates that more than a billion smartphones with built-in generative AI will ship by the end of 2027. At Unpacked this week, Samsung will take an early step toward grabbing a slice of that business. —[Yoolim Lee](mailto:yoolim@bloomberg.net) The big story AI overtook the metaverse as Mark Zuckerberg’s top priority, a change that surprised many inside and outside the company. It was driven by Zuckerberg’s motivation to be personally [seen as Meta’s chief innovator](. One to watch [Watch the Bloomberg Technology TV interview]( with Flexport CEO Ryan Petersen. Get fully charged Expectations for the upcoming Suicide Squad video game were once high. Now [not so much](. Broadcom is weighing [buyer interest](in its software business from private equity firms. Apple is offering[a rare discount]( on its latest iPhones in China. More from Bloomberg Bloomberg House at Davos: Make us your home base at the World Economic Forum, Jan. 15 to 18. Find us at Promenade 115, a five-minute walk from the Congress Centre. [Register to join](. Get Bloomberg Tech weeklies in your inbox: - [Cyber Bulletin]( for coverage of the shadow world of hackers and cyber-espionage - [Game On]( for reporting on the video game business - [Power On]( for Apple scoops, consumer tech news and more - [Screentime]( for a front-row seat to the collision of Hollywood and Silicon Valley - [Soundbite]( for reporting on podcasting, the music industry and audio trends - [Q&AI]( for answers to all your questions about AI Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Tech Daily newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](