Technology
Samsung Electronics banking on AI to outpace international expansion in smartphones, house home equipment
Samsung Electronics plans to ramp up its on-device AI industry, with the attempt of exceeding international marketplace expansion within the shopper electronics department this hour.
The worldwide shopper electronics marketplace for smartphone, TV and residential home equipment will develop kind of 3% in 2025, Jong-Hee Han, leading govt officer of Samsung Electronics, instructed CNBC’s Chery Kang.
Samsung, the sector’s biggest smartphone and TV maker, expects its cell units industry to develop via 4%-5% this hour, pace expansion in TV and residential home equipment unit may be prone to boost up, stated Han, additionally the top of gadget eExperience (DX) category of Samsung Electronics.
Samsung Electronics has been ramping up efforts to connect its devices to artificial intelligence, putting in AI chips in its refrigerators, bathing machines and robotic vacuum cleaners.
It has additionally been bolstering its AI purposes on its top rate flagship smartphone fashions, such because the Galaxy S24 layout, which has multiple AI-enabled features together with real-time translation of certain foreign language phone calls.
This comes as Chinese language manufacturers similar to Huawei and Xiaomi have emerged as critical competition to Samsung via providing high-end smartphones at considerably decrease costs.
Festival from Chinese language firms is ‘useful” for Samsung and the consumers, Han said during the interview, noting that the company aims to differentiate its products with more security and convenience, rather than lowering prices.
AI chip delays
Samsung introduced a major leadership reshuffle in November, putting Jun Young-hyun as co-CEO and head of the memory chip arm, sharing leadership duties with Han.
The South Korean tech giant, once the dominant force in the memory chip sector, has fallen behind SK Hynix in the race to supply high bandwidth memory chips, or HBM chips, that are a key component for AI leader Nvidia.
Samsung will reportedly issue its fourth-quarter revenue and running benefit forecasts on Wednesday, ahead of liberating quarterly leads to overdue January.
Samsung running benefit for the December quarter is expected to come in at 8.2 trillion won ($5.6 billion), according to Reuters estimates, a notable uptick from 2.8 trillion won it reported a year earlier, but down from 9.18 trillion won in the prior quarter.
In October, Jun, the semiconductor division head, issued a rare apology for the company’s disappointing third-quarter performance.
Last year, shares of the South Korean giant plunged 32%, according to LSEG data, lagging the broader benchmark Kospi’s 9.6% loss.
The share price has “by no means been this low ahead of,” Han said during the interview, adding that the company has “value-up” plan, aimed at increasing shareholders’ returns. The plan will be announced “separately when it’s to bring,” he said, according to a CNBC translation of his statement in Korean.
Investors are hoping for Samsung to close the gap on HBM and get more serious about its “value-up” scheme, Phillip Wool, head of research at Rayliant Global Advisors said in a note Monday, while adding that the 10-trillion won share buyback plan may help stabilize the stock’s price.
The company unveiled a surprise plan in November to buy back about 10 trillion won worth of shares over the following 12 months.
Peter Lee, an analyst at Citi, cautioned in a note on Dec. 31, that a longer-than-expected delay in getting Nvidia’s approval for its HBM chips and weaker PC sales could continue to pose downside risks. He maintained a “purchase” score at the store pace trimming its goal worth to 83,000 received from 87,000 received.
