Samsung Electronics is leveraging AI technology to drive growth in the global smartphone and home appliance markets.

• Samsung Electronics aims to increase its on-device AI capabilities, with the belief that its consumer electronics division will outpace overall global market growth this year.
• Samsung anticipates a 4-5% increase in its mobile devices business this year, while its TV and home appliances unit is expected to experience accelerated growth.

Samsung Electronics aims to increase its on-device AI business and surpass global market growth in the consumer electronics industry this year.

According to Jong-Hee Han, CEO of Samsung Electronics, the global consumer electronics market for smartphones, TVs, and home appliances is expected to increase by approximately 3% in 2025, as stated to Chery Kang of CNBC.

The mobile devices business of Samsung, the world's largest smartphone and TV maker, is expected to grow by 4%-5% this year, while the growth in the TV and home appliances unit is also likely to accelerate, according to Han, the head of the device eExperience (DX) division of Samsung Electronics.

Samsung Electronics has been intensifying its efforts to integrate artificial intelligence into its devices, embedding AI chips in its refrigerators, washing machines, and robot vacuum cleaners.

The Galaxy S24 series, one of Samsung's premium flagship smartphones, has been enhancing its AI capabilities, including real-time translation of foreign language phone calls.

High-end smartphones are now being offered by Chinese brands such as Huawei and Xiaomi at significantly lower prices, making them serious competitors to Samsung.

According to Han, competition from Chinese companies is beneficial for Samsung and consumers, as the company focuses on differentiating its products with enhanced security and convenience, rather than reducing prices.

AI chip delays

In November, Samsung announced a major leadership reshuffle, with Jun Young-hyun being appointed as co-CEO and head of the memory chip arm, while Han also took on leadership duties.

SK Hynix has surpassed Samsung as the leading supplier of high bandwidth memory chips, which are crucial for Nvidia's AI technology.

On Wednesday, Samsung is expected to release its forecasts for fourth-quarter revenue and operating profit, followed by the release of its quarterly results in late January.

According to Reuters estimates, Samsung's operating profit for the December quarter is predicted to be 8.2 trillion won ($5.6 billion), a significant increase from the 2.8 trillion won reported a year ago, but lower than the 9.18 trillion won recorded in the previous quarter.

In October, the semiconductor division head, Jun, issued a rare apology for the company's disappointing third-quarter performance.

According to LSEG data, the South Korean giant's shares dropped 32% last year, which was more than the broader benchmark Kospi's 9.6% decline.

During the interview, Han stated that the share price has "never been this low before." However, he also mentioned that the company has a "value-up" plan in place to increase shareholders' returns. He added that the plan will be announced "one by one when it's in order."

According to Phillip Wool, head of research at Rayliant Global Advisors, investors are hoping for Samsung to narrow the gap between it and HBM and become more committed to its "value-up" strategy. Additionally, Wool stated that Samsung's 10-trillion won share buyback plan may help maintain the stability of its stock price.

In November, the company announced a plan to purchase approximately 10 trillion won in shares over the course of the next 12 months.

On December 31, Peter Lee, an analyst at Citi, issued a note warning that a delay in Nvidia's approval for its HBM chips and weak PC sales could pose downside risks. Despite this, he kept a "buy" rating on the stock and reduced its target price from 87,000 won to 83,000 won.