Samsung Bets on AI for Earnings Bounce Back
Table of Contents
- 1. Samsung Bets on AI for Earnings Bounce Back
- 2. A new Focus: AI-Powered Smart Homes
- 3. Earnings Short of Expectations
- 4. Challenges and Opportunities
- 5. Samsung Unveils AI-Powered Appliances at CES 2025, Emphasizing Customer Experiences
- 6. Reorganization for Innovation and Quality
- 7. seamless Connected Experiences
- 8. Unlock the Power of WordPress SEO
- 9. Optimizing Your WordPress Site for Search Engines
- 10. WordPress SEO Best Practices to Embrace
- 11. Stay Ahead of the SEO Curve
- 12. What is Samsung’s ultimate goal with AI integration in products?
Despite missing analysts’ profit forecasts for the fourth quarter of 2024, Samsung electronics CEO and Vice Chairman Han Jong-hee expressed confidence in the company’s future, highlighting its ambitious
artificial intelligence (AI) vision for smart homes.
A new Focus: AI-Powered Smart Homes
Speaking at CES 2025 in Las Vegas, Han emphasized that Samsung’s AI-driven smart home strategy will be the key driver for future earnings recovery. He unveiled a vision for AI that goes beyond simply increasing the number of AI-powered devices. Samsung aims to create a seamless ecosystem where devices connect intuitively, anticipate user needs, and respond intelligently.
“The home AI we presented at CES 2025 is a vision that redefines ever-evolving AI technology from the customers’ perspective,” Han explained. “based on over a decade of our accumulated experience in the smart home business, our goal is to realize a home AI system that seamlessly connects devices, anticipates customer needs and responds intuitively and smartly.”
At CES 2025, Samsung showcased examples of personalized AI experiences using AI-embedded appliances and its SmartThings Internet of Things (IoT) technology.This year, Samsung chose to position its latest products as secondary to its AI focus, suggesting a strategic shift in priorities.
Earnings Short of Expectations
The optimism surrounding Samsung’s AI ambitions comes amidst slightly disappointing earnings guidance. The tech giant estimated its fourth-quarter 2024 operating profit at 6.5 trillion won ($4.47 billion),a 130.5 percent increase year-on-year but falling short of analysts’ consensus of 7.97 trillion won. Revenue was projected to reach 75 trillion won, up 10.65 percent year-on-year,compared to analysts’ expectations of 77.4 trillion won.
while Samsung acknowledged that fourth-quarter earnings were lower than market expectations, Han remained positive. He viewed the situation as an opportunity for the company to “make a leap forward.”
Challenges and Opportunities
Analysts attribute the lower-than-expected profits to a slowdown in Samsung’s smartphone business and continuing challenges within its semiconductor division due to unfavorable market conditions. However, Samsung expressed confidence in its ability to overcome these hurdles, citing positive feedback from global vendors on its AI vision.
Samsung Unveils AI-Powered Appliances at CES 2025, Emphasizing Customer Experiences
Samsung Electronics, a global leader in technology and innovation, showcased its latest advancements in artificial intelligence (AI) at CES 2025. The company, headed by Vice Chairman Han Jong-hee, unveiled a range of AI-powered appliances designed to enhance customer experiences and simplify daily life.
Reorganization for Innovation and Quality
acknowledging the importance of product quality and AI in shaping the future, Han implemented key changes within the company. “Samsung will overcome every challenge by committing ourselves truly to the very fundamentals of our business,” he stated. “And the fundamental we believe is making an unrivaled technology innovation toward product quality and customer value.”
A new product quality innovation committee, led by Han himself, was established to oversee the quality of home appliances. Additionally, Samsung created a dedicated team focused on AI, headed by Chief Technology officer Cheun Kyung-whoon, to ensure the company remains at the forefront of technological advancements in both devices and services.
This strategic reorganization reflects samsung’s commitment to delivering superior products and experiences to its customers. As Han explains, “our product ranges from smartphones, TVs, home appliances, electronic auto parts and a slew of other items that people use in their daily lives.”
seamless Connected Experiences
Samsung’s focus on AI-powered appliances centers around creating seamless connected experiences. Han emphasized that the “ultimate goal when AI is integrated into products is automation,” aiming to relieve users from tedious tasks and enhance convenience.
He highlighted the positive reception from vendors, stating that
`”the general response has been that they now fully grasp our strategies and find them attractive. As we shared a long-term vision wiht them, they now have a clearer understanding of our roadmap.”
This forward-thinking approach positions Samsung as a leader in the rapidly evolving landscape of smart devices and connected living, promising a future where technology seamlessly integrates into everyday life.
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What is Samsung’s ultimate goal with AI integration in products?
Interview with Han Jong-hee, Samsung electronics CEO and Vice Chairman
Archyde News editor: good morning, Mr. Han. Thank you for taking the time to speak with us today. Let’s start with Samsung’s recent performance. Despite missing analysts’ profit forecasts for the fourth quarter of 2024, you’ve expressed confidence in the company’s future. Could you elaborate on what drives this optimism?
Han Jong-hee: Good morning. Yes,while our fourth-quarter earnings fell short of analysts’ expectations,we see this as a pivotal moment for growth. the tech industry is constantly evolving,and we’re focusing on a long-term vision rather than short-term metrics. our confidence stems from our ambitious artificial intelligence (AI) strategy, notably in the smart home sector. We believe this will be a key driver for earnings recovery and innovation.
archyde News Editor: At CES 2025,you unveiled Samsung’s AI-driven smart home vision,emphasizing seamless ecosystems. Could you explain what this means for consumers?
Han Jong-hee: Absolutely. Our goal is to create a home AI system that goes beyond individual devices. We want to build an ecosystem where devices connect intuitively, anticipate user needs, and respond intelligently. For example, imagine your refrigerator suggesting recipes based on what’s inside, while your oven adjusts cooking times automatically. It’s about making technology work for you,not the othre way around. This seamless experience is the future of smart living.
Archyde News Editor: Samsung showcased AI-embedded appliances at CES 2025, positioning AI as a primary focus rather than the products themselves. This seems like a strategic shift. What’s the reasoning behind this?
Han Jong-hee: This is indeed a strategic shift.While our products remain essential, we believe the true value lies in how they interact within an ecosystem. AI is the glue that binds these devices together, enhancing functionality and user experience. By prioritizing AI, we’re not just selling products; we’re offering a lifestyle transformation. This approach has already garnered positive feedback from global vendors, who now have a clearer understanding of our roadmap.
Archyde News Editor: Some analysts attribute the lower-than-expected profits to challenges in your smartphone and semiconductor divisions. How does Samsung plan to address these hurdles?
Han Jong-hee: Challenges are part of any business, and we’re no exception. The slowdown in our smartphone business and semiconductor division reflects market conditions, but we’re actively addressing these issues. We’ve implemented key organizational changes, including a product quality innovation committee and a dedicated AI team.These initiatives will ensure we remain at the forefront of technological advancements while delivering superior products to our customers.
Archyde News editor: You’ve also mentioned that Samsung will “make a leap forward” from this situation. What does this leap entail?
Han Jong-hee: This leap involves redefining our approach to innovation. We’re committing to the fundamentals of our business—unrivaled technology, product quality, and customer value. By integrating AI across our product range, from smartphones to home appliances, we’re creating a future where technology seamlessly enhances everyday life. This isn’t just about recovery; it’s about leading the next wave of technological evolution.
Archyde News Editor: Looking ahead, what’s Samsung’s ultimate goal with AI integration in products?
han Jong-hee: Our ultimate goal is automation—relieving users from tedious tasks and enhancing convenience. When AI is integrated into products, it should intuitively understand and respond to user needs, making life simpler and more enjoyable. This is the vision we’re working toward, and we’re confident it will shape the future of smart living.
Archyde News Editor: Thank you, Mr.Han, for your insightful perspectives. We look forward to seeing Samsung’s AI vision unfold in the coming years.
Han Jong-hee: Thank you. We’re excited to lead this transformation and deliver value to our customers worldwide.
