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Samsung Electronics plans to ramp up its device AI business with the aim of outpacing global market growth in the consumer electronics segment this year.
The global consumer electronics market for smartphones, TVs and home appliances will grow by about 3% in 2025, Jung-Hee Han, chief executive officer of Samsung Electronics, told CNBC’s Chery Kang.
Samsung, the world’s largest smartphone and TV maker, expects its mobile device business to grow 4% to 5% this year, while growth in its TV and home appliances division is also likely to accelerate, said Khan, also the device chief. eExperience ( DX) a division of Samsung Electronics.
Samsung Electronics is stepping up its efforts to connect your devices to artificial intelligenceinstalling artificial intelligence chips in refrigerators, washing machines and robot vacuum cleaners.
It also enhances the AI features on premium flagship smartphone models such as the Galaxy S24 series, which has multiple AI-enabled features including real-time translation some phone calls in a foreign language.
It comes with Chinese brands like Huawei and Xiaomi became serious competitors Samsung, offering high-end smartphones at much lower prices.
Competition from Chinese companies is “good” for Samsung and consumers, Han said in an interview, noting that the company is looking to differentiate its products with greater security and convenience rather than lower prices.
Latencies of AI chips
Samsung announced a a major management shakeup in Novemberappointing Jun Yeon-hyung as co-CEO and head of the memory chip division, sharing leadership duties with Han.
The South Korean tech giant, once a dominant force in the memory chip sector, lost ground to SK Hynix in the race to supply high-bandwidth memory chips, or HBM chips, a key component for AI leader Nvidia.
Samsung is reportedly going to release it revenue in the fourth quarter and operating profit forecasts on Wednesday before releasing quarterly results in late January.
Samsung operating profit for the December quarter expected to reach 8.2 trillion won ($5.6 billion)Reuters estimates showed a marked increase from the 2.8 trillion won reported a year earlier, but down from 9.18 trillion won in the previous quarter.
In October, June, the head of the semiconductor department, issued a rare apology for disappointing the company third quarter performance.
Shares in the South Korean giant have fallen 32% in the past year, according to LSEG data, trailing the broader benchmark Kospi, which lost 9.6%.
The stock price has “never been this low before,” Khan said in an interview, adding that the company has a “value enhancement” plan aimed at increasing shareholder returns. The plan will be announced “one by one if it’s okay,” he said, according to a CNBC translation of his statement in Korean.
Investors hope Samsung will close the HBM gap and get more serious about its value enhancement scheme, Philip Wool, head of research at Rayliant Global Advisors, said in a note on Monday, adding that the share buyback is worth 10 trillion won. the plan can help stabilize the stock price.
Company in November presented an unexpected plan to buy back shares worth about 10 trillion won over the next 12 months.
Citi analyst Peter Lee warned in a Dec. 31 note that a longer-than-expected delay in getting approval from Nvidia for its HBM chips and weaker PC sales could continue to pose downside risks. He maintained a “buy” rating on the stock, while cutting his price target to 83,000 won from 87,000 won.
