Samsung Electronics is intensifying its focus on on-device AI, anticipating growth in its mobile device sector of 4-5% this year, while the broader global consumer electronics market, encompassing smartphones, TVs, and home appliances, is expected to grow by approximately 3% in 2025. CEO Jong-Hee Han highlighted the integration of AI in various products, including smart appliances and the Galaxy S24 series smartphones, which feature advanced AI functions like real-time translation. The company faces stiff competition from Chinese brands like Huawei and Xiaomi, which offer premium devices at lower prices; however, Han views this competition as beneficial for consumers and aims to differentiate Samsung’s products through enhanced security and convenience rather than price reductions.
Additionally, Samsung has experienced challenges in the memory chip market, falling behind SK Hynix in supplying high-bandwidth memory chips essential for AI technology. As part of a strategy to boost shareholder returns, Samsung announced a 10 trillion won share buyback plan. Samsung is also expected to release its quarterly earnings soon, with an anticipated operating profit increase for the December quarter, contrasting with previous poor performance and a significant drop in share price over the past year.
