Samsung doubles down on AI in Brazil’s crowded smartpho…

Premium Galaxy S26 lineup, priced up to R$11,499, aims to boost retention in a mature market

In the smartphone market, where most consumers already own a device, retaining users has become crucial, particularly for leaders such as Samsung. In this mature, highly competitive environment, the South Korean company unveiled on Wednesday (25), in San Francisco, three new models in its premium Galaxy S lineup, the brand’s most sophisticated and expensive segment. The three models will retail in Brazil between R$7,499 and R$11,499.

Production has already begun at Samsung’s factories in Campinas (São Paulo) and Manaus (Amazonas), and the devices are expected to be available for display in stores within three weeks. Initial inventory for sale would arrive shortly thereafter. The main appeal of the Galaxy S26 series is its advanced integration of artificial intelligence. However, Samsung’s strategy to retain customers is broader, encompassing additional hardware innovations, consumer credit options, and a portfolio of proprietary applications that the company has invested in for years, including health and wellness services and its digital wallet.

“The smartphone business is an ecosystem business. It goes far beyond simply selling devices,” said Gustavo Assunção, senior vice president of sales and marketing at Samsung in Brazil. The global handset market faces headwinds. A shortage of memory chips, which began affecting the sector in 2025, is expected to weigh on global sales this year, with repercussions extending through 2027. Worldwide shipments rose 1.9% last year to 1.26 billion units, while the fourth quarter recorded a 2.3% increase to 336.3 million units, according to preliminary data from IDC.

That positive performance was largely driven by demand for premium devices, the segment in which the Galaxy S26 competes. Samsung posted its strongest fourth quarter since 2013 and ended the year with 7.9% growth. Apple’s iPhone grew 6.3%. The two companies jointly lead the global market with a 19% share each. Brazil, Latin America’s largest smartphone market, supported regional growth. Shipments in the region rose 3% to 140.5 million units in 2025, according to consultancy Omdia.

Samsung leads the Brazilian market with a 40% share, followed by Motorola (24%), Xiaomi (16%), Apple (7%), and realme (6%). Competition has intensified since 2024 with the arrival of additional Chinese brands. Companies such as Oppo, Honor, Transsion (through the Infinix brand, in partnership with Positivo), and vivo (operating locally under the Jovi brand) have entered the market. These companies are competing in an effectively stable market, where a significant portion of the population already owns a device.

According to Fundação Getulio Vargas, Brazil averages 1.3 smartphones per inhabitant. Consumer behavior has also shifted since the pandemic: instead of replacing devices annually, as was once common, Brazilians now keep their phones for about three years. The combination of more brands and longer replacement cycles means companies must win customers from competitors rather than rely solely on market expansion.

Within the Galaxy S lineup, Samsung says its retention rate is close to 90%, meaning that nine out of ten customers purchasing a new device were already users of a previous model. “That gives us confidence to launch the S26,” Assunção said. This is the third generation of Galaxy devices incorporating AI. The first debuted in 2024, when the technology was still novel in smartphones. In 2025, the lineup added further automation features.

Now, Assunção said, the focus is on so-called “agentic AI,” capable of executing tasks almost imperceptibly. “It’s a silent transformation. Artificial intelligence will become more relevant the less people notice it working,” he said. At the higher end of the price spectrum, the Galaxy S series stands to benefit from Samsung’s financing programs. The company has long partnered with Itaú in consumer credit initiatives and last year launched the New Galaxy Club, a subscription-style program.

Customers pay a monthly fee, which includes insurance, and after 18 months can trade in their device for a newer model, with the used phone valued at 50% of its original price. Partnerships with telecom carriers offering discounts and retail chains providing installment plans of up to 36 months will also be available for the S26. Two operating systems dominate the smartphone universe. Google’s Android is used by most manufacturers and accounts for 70.7% of global devices, according to Statcounter.

Apple’s iOS, exclusive to the iPhone, holds 28.6%. For Samsung, a key challenge is that many consumers choose devices based on operating systems, making it difficult to attract users who prefer iOS regardless of hardware quality. “We are working hard to bring differentiation to Android,” Assunção said. “There is a level of customization developed by Samsung that is exclusive to our devices.

Galaxy AI itself is an example of that.” This article was translated from Valor Econômico using an artificial intelligence tool under the supervision of the Valor International editorial team to ensure accuracy, clarity, and adherence to our editorial standards. Read our Editorial Principles.

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This report covers the latest developments in samsung. The information presented highlights key changes and updates that are relevant to those following this topic.

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