Samsung Electronics plans to expand its device-side artificial intelligence business, aiming to surpass global market growth in the consumer electronics field this year.
Samsung Electronics CEO Jong-Hee Han told CNBC’s Chery Kang that the global consumer electronics market, including smartphones, TVs and home appliances, will grow by about 3% by 2025.
Samsung, the world’s largest smartphone and TV maker, expects its mobile device business to grow 4%-5% this year, and the growth of its TV and home appliance divisions may also accelerate, said Han, who is also the head of device eExperience. Electronics department.
Samsung Electronics has been increasing its efforts Connect their devices to artificial intelligenceinstalling artificial intelligence chips in its refrigerators, washing machines and sweeping robots.
It has also enhanced AI capabilities on its high-end flagship smartphone models, such as the Galaxy S24 series, Multiple artificial intelligence functions Includes instant translation certain foreign language calls.
Meanwhile, Chinese brands such as Huawei and Xiaomi have become serious competitors to Samsung by offering high-end smartphones at much lower prices.
Han said in the interview that competition from Chinese companies would be “helpful” to Samsung and consumers, noting that the company aims to differentiate its products by making them more secure and convenient, rather than lowering prices. .
AI chip delay
The South Korean tech giant, once a dominant force in memory chips, has fallen behind SK Hynix in the race to supply high-bandwidth memory chips (HBM chips), a key component for artificial intelligence leader Nvidia.
According to reports, Samsung will issue Fourth quarter revenue It releases quarterly forecasts on Wednesday, followed by quarterly results at the end of January.
Samsung fourth-quarter operating profit Estimated revenue of KRW 8.2 trillion (USD 5.6 billion)According to Reuters estimates, this was a significant increase from 2.8 trillion won in the same period last year, but lower than the 9.18 trillion won in the previous quarter.
In October, semiconductor unit chief Jun issued a rare apology for the company’s disappointing third-quarter results.
The South Korean giant’s shares plunged 32% last year, lagging the broader benchmark Kospi’s 9.6% decline, according to LSEG data.
Han said in an interview that the stock price “has never been this low,” adding that the company has a “value enhancement” plan aimed at increasing shareholder returns. The plan will be announced “one by one at the appropriate time,” he said, according to CNBC’s Korean translation.
Investors hope Samsung closes the gap with HBM and takes its “value enhancement” plan more seriously, Phillip Wool, head of research at Rayliant Global Advisors, said in a note on Monday, adding that a 10 trillion won share buyback program is planned. May help stabilize stock prices.
The company announced a surprise plan in November to buy back about 10 trillion won worth of stock over the next 12 months.
Citi analyst Peter Lee warned in a Dec. 31 report that a longer-than-expected delay in getting Nvidia’s HBM chips approved and weak PC sales could continue to pose downside risks. He maintained his “buy” rating on the stock while lowering his target price to 83,000 won from 87,000 won.
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