Prime Highlights:
Samsung aims to outpace global consumer electronics growth in 2025 through increased AI integration.
The company expects 4-5% growth in mobile devices, with accelerated growth in TVs and home appliances.
Key Background:
Samsung Electronics is setting its sights on artificial intelligence (AI) to drive growth in its consumer electronics division, as the company seeks to exceed the overall global market growth in 2025. The global consumer electronics market, encompassing smartphones, TVs, and home appliances, is anticipated to grow by around 3% this year. However, Samsung aims for a 4-5% growth in its mobile device sector, alongside accelerated growth in its TV and home appliance units.
Jong-Hee Han, CEO of Samsung Electronics, emphasized the company’s strategic focus on incorporating AI into its products. This includes embedding AI chips in home appliances such as refrigerators, washing machines, and robot vacuum cleaners. In addition, premium smartphone models, like the Galaxy S24 series, are being equipped with advanced AI functions, including real-time translation for foreign language phone calls.
Despite challenges from Chinese competitors like Huawei and Xiaomi, which offer high-end smartphones at more competitive prices, Samsung views this competition as beneficial, as it pushes the company to differentiate through enhanced product security and convenience, rather than through price reductions.
Samsung’s AI strategy comes amid challenges in the memory chip sector, where the company has fallen behind rivals like SK Hynix in the production of high-bandwidth memory (HBM) chips used by AI leaders like Nvidia. However, Samsung has also outlined its plans to close this gap, with a significant focus on innovation and its “value-up” plan, which is expected to boost shareholder returns. While the company projects a significant recovery in Q1 2025 profits, driven by a rebound in memory chip prices, Samsung’s leadership remains cautious, with analysts noting potential risks in HBM chip delays and weaker-than-expected sales in the PC market.
