Samsung is taking an unusual route at a time when smartphone prices are climbing worldwide. Instead of reserving its most advanced AI tools for premium devices, the company is pushing them into the mid-range segment.
The move comes as the industry faces heavier cost pressure. Counterpoint noted that the global average selling price of smartphones rose 12 percent year on year in Q1 2026, while bill of materials costs increased 20-30 percent for entry-level phones and 10-15 percent for mid-range and flagship models.
AI features move beyond the flagship tier
Samsung is adding capabilities such as Voice Transcription and on-device AI to mid-range devices, including the Galaxy A37 5G and Galaxy A57 5G. The company is also promising up to six operating system upgrades and six years of security updates.
Head of MX Business Samsung Electronics Indonesia Yadi Prayitno said the current shift in AI is moving faster than previous waves of digital transformation. He said AI development has advanced faster than many had expected.
| Feature | Mid-Range Benefit | Support Period |
|---|---|---|
| Voice Transcription | Records and converts conversations into text directly on the device | Works without internet or cellular data |
| On-device AI | Processes data locally for better productivity and privacy | Included in mid-range models |
| Software Updates | Keeps the phone relevant for longer use | Up to 6 OS upgrades and 6 years of security updates |
Why Samsung is betting on longer ownership cycles
The strategy is not only about responding to rising component costs. Samsung also wants to offer more value as consumers keep their phones longer before replacing them.
Counterpoint research shows the smartphone replacement cycle reached 43 months, or about 3.6 years, in 2023 and 2024. That shift means buyers now treat a phone as an investment decision rather than a simple spec upgrade.
Yadi said users are no longer comparing only cameras or processor speed. They are also weighing device lifespan, data security, software support, and the long-term cost of ownership.
Privacy and productivity drive on-device AI
On-device AI processes data directly on the handset instead of sending it to an external server or cloud. Samsung says that approach matters for both productivity and privacy, especially for professional users who cannot always rely on an internet connection.
Yadi described on-device processing as the future direction of smartphone AI. He said Samsung wants more work to happen on the user’s device rather than depending entirely on the cloud.
The concept is also tied to the next phase of agentic AI. By keeping data on the phone, users get an added layer of protection when handling sensitive information.
Voice Transcription shows the practical use case
Voice Transcription is one of the clearest examples of how Samsung is translating AI into everyday use. The feature can record conversations, interviews, meetings, or discussions, then automatically turn them into text.
Head of Category Management Samsung Electronics Indonesia Verry Octavianus said the entire process runs directly on the device. He also said the system can transcribe conversations in multiple languages without needing internet quota or mobile data.
The practical value reaches several user groups. Journalists can transcribe interviews without manual note-taking, students can turn lecture recordings into text, office workers can document meetings, and small business owners can capture business discussions more quickly.
Because the data does not need to go to the cloud, security becomes a stronger selling point. That matters for work documents, meeting notes, and private conversations.
Localization is central to Samsung’s AI push
Samsung is also focusing on making AI useful in local markets, not just advanced in technical terms. To do that, the company has expanded Indonesian language support across several AI features.
Verry said that when Galaxy AI first appeared, many features still relied on English. Now, Indonesian has been integrated into more Samsung AI tools so they better fit daily use.
That localization effort is important to Samsung’s idea of AI democratization. A feature may be affordable, but it will not be truly useful if it does not support the language people use every day.
Longer software support is part of the value story
Samsung argues that democratizing AI is not only about placing premium features on more affordable phones. The devices also need to stay relevant as AI capabilities continue to evolve over the next several years.
That is why the company is extending support with six operating system updates and six years of security patches for its mid-range smartphones. Yadi said this makes the total cost of ownership lower than replacing a cheaper phone every two years, especially when component prices are rising.
The long-term support is backed by 165 service centers in 133 cities across Indonesia. Samsung also said its hardware supply chain control helps secure component availability for smartphone production through 2026, supporting price stability and product availability.
With this strategy, the mid-range phone is no longer positioned only as a cheaper alternative. Samsung is turning it into a gateway for more users to access AI that is secure, locally relevant, and built to last.