Jong-Hee Han, CEO of Samsung Electronics and head of the company’s Device eXperience division, stated in an interview that the firm expects its mobile devices to grow by 4%-5% this year, with similar acceleration projected for TVs and home appliances.
Samsung, the world’s largest smartphone and TV manufacturer, is integrating AI capabilities across its devices, embedding AI chips into appliances like refrigerators, washing machines, and robot vacuums.
Its premium Galaxy S24 smartphones feature advanced AI functionalities, including real-time translation of foreign language calls. This strategy aims to differentiate Samsung from competitors like Huawei and Xiaomi, which offer high-end devices at lower prices. Han emphasized the focus on enhancing security and convenience rather than engaging in a price war, calling the competition “helpful” for consumers and Samsung alike.
However, Samsung faces challenges in the AI chip market. Despite its leadership reshuffle in November, with Jun Young-hyun appointed co-CEO and head of the memory chip division, the company has fallen behind rival SK Hynix in supplying high-bandwidth memory (HBM) chips critical for AI applications. Delays in securing Nvidia’s approval for its HBM chips have compounded these difficulties, with analysts warning of risks from weaker PC sales.
Samsung’s financial outlook shows improvement. The company is expected to report 8.2 trillion won (US$5.6 billion) in operating profit for the December quarter, significantly up from 2.8 trillion won a year ago but slightly below the prior quarter’s 9.18 trillion won. Last year, its stock dropped 32%, underperforming the Kospi benchmark, but a surprise 10-trillion won share buyback plan announced in November may help stabilize the stock.
Samsung’s leadership has vowed to implement a “value-up” strategy to increase shareholder returns, which Han hinted would be revealed gradually. Analysts remain optimistic about Samsung’s prospects, with some maintaining a “buy” rating despite trimming price targets due to the ongoing HBM delays. Investors now look to see how quickly Samsung can close the gap in AI chip technology while capitalizing on its AI-driven product innovations.
