Samsung Electronics plans to ramp up its on-device AI enterprise, with the purpose of exceeding international market development within the client electronics phase this yr.
The worldwide client electronics marketplace for smartphone, TV and residential home equipment will develop roughly 3% in 2025, Jong-Hee Han, chief govt officer of Samsung Electronics, advised CNBC’s Chery Kang.
Samsung, the world’s largest smartphone and TV maker, expects its cell units enterprise to develop by 4%-5% this yr, whereas development in TV and residential home equipment unit can also be more likely to speed up, stated 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 language manufacturers akin to Huawei and Xiaomi have emerged as serious competitors to Samsung by providing high-end smartphones at considerably decrease costs.
Competitors from Chinese language firms is ‘useful” for Samsung and the customers, Han stated through the interview, noting that the corporate goals to distinguish its merchandise with extra safety and comfort, moderately than reducing costs.
AI chip delays
Samsung introduced a major leadership reshuffle in November, placing Jun Younger-hyun as co-CEO and head of the reminiscence chip arm, sharing management duties with Han.
The South Korean tech large, as soon as the dominant drive within the reminiscence chip sector, has fallen behind SK Hynix within the race to provide excessive bandwidth reminiscence chips, or HBM chips, which might be a key part for AI chief Nvidia.
Samsung will reportedly concern 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), based on Reuters estimates, a notable uptick from 2.8 trillion received it reported a yr earlier, however down from 9.18 trillion received within the prior quarter.
In October, Jun, the semiconductor division head, issued a rare apology for the company’s disappointing third-quarter efficiency.
Final yr, shares of the South Korean large plunged 32%, based on LSEG knowledge, lagging the broader benchmark Kospi’s 9.6% loss.
The share value has “by no means been this low earlier than,” Han stated through the interview, including that the corporate has “value-up” plan, aimed toward rising shareholders’ returns. The plan can be introduced “one after the other when it is so as,” he stated, based on a CNBC translation of his assertion in Korean.
Traders are hoping for Samsung to shut the hole on HBM and get extra critical about its “value-up” scheme, Phillip Wool, head of analysis at Rayliant World Advisors stated in a be aware Monday, whereas including that the 10-trillion received share buyback plan could assist stabilize the inventory’s value.
The corporate unveiled a surprise plan in November to purchase again about 10 trillion received price of shares over the next 12 months.
Peter Lee, an analyst at Citi, cautioned in a be aware 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” ranking on the inventory whereas trimming its goal value to 83,000 received from 87,000 received.
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