Samsung Electronics plans to ramp up its on-device AI enterprise, with the purpose of exceeding world market progress within the client electronics section this yr.
The world client electronics marketplace for smartphone, TV and residential home equipment will develop roughly 3% in 2025, Jong-Hee Han, chief government officer of Samsung Electronics, instructed CNBC’s Chery Kang.
Samsung, the world’s largest smartphone and TV maker, expects its cellular gadgets enterprise to develop by 4%-5% this yr, whereas progress in TV and residential home equipment unit can be prone to speed up, mentioned Han, additionally the top of system eExperience (DX) division of Samsung Electronics.
Samsung Electronics has been ramping up efforts to connect its devices to artificial intelligence, putting in AI chips in its fridges, washing machines and robotic vacuum cleaners.
It has additionally been bolstering its AI capabilities on its premium flagship smartphone fashions, such because the Galaxy S24 collection, which has multiple AI-enabled features together with real-time translation of certain foreign language phone calls.
This comes as Chinese manufacturers comparable to Huawei and Xiaomi have emerged as serious competitors to Samsung by providing high-end smartphones at considerably decrease costs.
Competition from Chinese firms is ‘useful” for Samsung and the customers, Han mentioned in the course of the interview, noting that the corporate goals to distinguish its merchandise with extra safety and comfort, relatively than reducing costs.
AI chip delays
Samsung introduced a major leadership reshuffle in November, placing Jun Young-hyun as co-CEO and head of the reminiscence chip arm, sharing management duties with Han.
The South Korean tech big, as soon as the dominant power within the reminiscence chip sector, has fallen behind SK Hynix within the race to produce excessive bandwidth reminiscence chips, or HBM chips, which can be a key element for AI chief Nvidia.
Samsung will reportedly subject its fourth-quarter revenue and working revenue forecasts on Wednesday, earlier than releasing quarterly leads to late January.
Samsung working revenue for the December quarter is expected to come in at 8.2 trillion won ($5.6 billion), in accordance with Reuters estimates, a notable uptick from 2.8 trillion gained it reported a yr earlier, however down from 9.18 trillion gained within the prior quarter.
In October, Jun, the semiconductor division head, issued a rare apology for the company’s disappointing third-quarter efficiency.
Last yr, shares of the South Korean big plunged 32%, in accordance with LSEG information, lagging the broader benchmark Kospi’s 9.6% loss.
The share value has “by no means been this low earlier than,” Han mentioned in the course of the interview, including that the corporate has “value-up” plan, aimed toward growing shareholders’ returns. The plan can be introduced “one after the other when it is so as,” he mentioned, in accordance with a CNBC translation of his assertion in Korean.
Investors are hoping for Samsung to shut the hole on HBM and get extra severe about its “value-up” scheme, Phillip Wool, head of analysis at Rayliant Global Advisors mentioned in a notice Monday, whereas including that the 10-trillion gained share buyback plan could assist stabilize the inventory’s value.
The firm unveiled a surprise plan in November to purchase again about 10 trillion gained value of shares over the next 12 months.
Peter Lee, an analyst at Citi, cautioned in a notice on Dec. 31, {that a} longer-than-expected delay in getting Nvidia’s approval for its HBM chips and weaker PC gross sales might proceed to pose draw back dangers. He maintained a “purchase” score on the inventory whereas trimming its goal value to 83,000 gained from 87,000 gained.
