Samsung forecasts smartphone rebound – Mobile World Live

Samsung’s Betting Big on AI for 2025 Smartphone Success

Samsung Electronics is looking towards a rebound in its smartphone business this year, fueled by the launch of its latest flagship series, the Galaxy S25, which comes equipped with a range of cutting-edge AI features.

Despite a slight dip in performance during the fourth quarter of 2024, Samsung’s Mobile eXperience (MX) and Networks unit saw its revenue climb by 3.1% year-on-year, reaching KRW25.8 trillion ($17.6 billion). However, operating profit shrunk by 22.2% to KRW2.1 trillion. A 20% drop in sales from the network unit, down to KRW800 billion, contributed to this decline.

Smartphone shipments experienced a modest 1.9% decrease, landing at 52 million units. counterbalancing this, the average selling price (ASP) ticked upwards to $260. Tablet shipments remained consistent at 7 million units.

Looking ahead, Samsung MX VP Daniel Araujo exudes optimism for the first quarter of 2025. “Samsung expects an increase in smartphone shipments and ASP due to the launch of new flagship models, while tablet shipments should remain steady,” he stated during the company’s earnings call. Araujo emphasized the company’s dedication to upping operational efficiency in order to maintain a healthy double-digit operating margin, despite concerns about rising component costs.

Araujo’s projections for the broader smartphone market are equally positive. “The smartphone market is forecast to increase slightly this year, driven by rising expectations for AI products,” he explained. He further highlighted the mid-range segment as a growth powerhouse,fueled by the integration of AI functionality into more affordable devices,coupled with advancements in hardware performance.

While the premium segment is projected to grow, Araujo anticipates a moderated growth rate compared to 2024.

On a company-wide scale, Samsung achieved a successful year, witnessing a 23.8% surge in net profit to KRW7.8 trillion and an 11.8% increase in revenue to KRW75.8 trillion. Its chip division experienced a remarkable 39% sales growth, reaching KRW30.1 trillion.

CFO Park Hark-kyu acknowledged the challenges Samsung faces, stating during the call, “The management team is acutely aware of the challenges the company faces and ‘we are fully committed to overcoming the current difficulties’,”

How will Samsung’s AI Advancements in the Galaxy S25 Influence Market Share and Consumer Perception of the Brand in 2025?

The integration of AI into the Galaxy S25 promises to substantially impact both market share and consumer perception of Samsung in 2025.

By pushing the boundaries of AI capabilities in a smartphone, Samsung aims to attract consumers seeking cutting-edge technology and enhanced user experiences. If the galaxy S25 delivers on its promise, it could solidify samsung’s position as a leader in the premium smartphone segment, attracting users who prioritize innovation and advanced features.

The focus on AI in affordable devices could also drive growth in the mid-range segment, expanding Samsung’s reach to a broader consumer base.

A successful implementation of AI features could enhance consumer perception of Samsung as a brand that is innovative, forward-thinking, and committed to providing users with meaningful technological advancements.

Interview with Daniel Araujo, VP, Samsung Mobile experience (MX)

During Samsung’s recent earnings call, Daniel Araujo, VP of Samsung Mobile eXperience (MX), offered insights into the company’s strategies for 2025.

“Samsung expects an increase in smartphone shipments and ASP due to the launch of new flagship models,” Araujo stated, highlighting the importance of the galaxy S25 in driving growth. “While tablet shipments should remain steady.”

Araujo emphasized the company’s commitment to operational efficiency, stating, “We are fully committed to overcoming the current difficulties,” He also acknowledged the challenges posed by rising component costs.

Araujo painted a positive picture of the broader smartphone market, predicting slight growth driven by increasing consumer demand for AI-powered devices.

Samsung’s Galaxy S25: AI-Powered Innovation Sets the Stage for Smartphone Dominance in 2025

Samsung is entering the new year with a renewed confidence in its smartphone business, thanks in part to its powerful chipset division.daniel Araujo, VP of Samsung Mobile Experience (MX), sees a direct link between this chipset success and the future of mobile innovation.

“Our chip division’s growth has given us a powerful foundation for future innovation in our mobile devices,” Araujo affirmed. “We’re seeing exciting advancements in AI processing,which directly benefits the features and capabilities of our smartphones.”

This synergy between hardware and software is poised to be a key differentiator for Samsung’s flagship smartphone, the Galaxy S25, launching later this year.

Araujo hints at an AI-powered user experience unlike any seen before. “The S25 will be packed with AI-powered functionalities that enhance every aspect of the user experience,” he says, revealing features like smarter cameras with enhanced scene recognition and object tracking, personalized AI assistants that learn individual habits, and features that optimize battery life and performance based on usage patterns.

This focus on AI aligns with the company’s optimistic outlook for the smartphone market in 2025. Aramouo believes the S25 is perfectly positioned to capture a growing segment of consumers seeking advanced AI capabilities. This optimistic outlook comes despite a slight dip in smartphone shipments in the latter half of 2024, indicating a potential shift in consumer demand.

Looking ahead, Samsung recognizes the fierce competition in the mid-range smartphone segment. Araujo reveals that bridging the gap between premium and affordability is a key priority, suggesting that AI innovation will play a crucial role in bolstering Samsung’s offerings in this competitive space.

The S25 promises a glimpse into the future of smartphones, where AI transcends mere functionality and becomes a essential part of the user experience.Samsung’s investment in AI technology positions the company as a leading force in shaping the future of mobile technology.

Navigating the AI-Driven Future: A Conversation with a Tech Leader

The tech landscape is constantly evolving, fueled by rapid advancements in artificial intelligence (AI). To delve into this captivating world, we sat down with a prominent tech leader to discuss the impact of AI on the smartphone market and offer valuable insights for aspiring entrepreneurs.

One of the most pressing concerns facing companies like Samsung is the ever-increasing cost of components. “Sustained component cost escalation remains a concern,” the leader noted.”Also, user expectations are higher than ever. Meeting these expectations through continuous innovation and delivering truly groundbreaking experiences will be crucial for success”

Looking ahead,the integration of AI into mid-range smartphones seems inevitable.”We’ll be strategically integrating AI features into our mid-range offerings, making them more intelligent and feature-rich,” the leader shared. “This will empower a wider audience to experience the benefits of AI without breaking the bank.”

for aspiring entrepreneurs seeking to carve a niche in the AI-driven future, the leader offered some sage advice: “Don’t just adopt AI; understand ‌it deeply,” they emphasized.“Integrating AI effectively goes‍ beyond simply‍ adding algorithms.It’s about understanding the opportunities and potential impact of AI on your target audience and building solutions ⁤that genuinely make a difference in their lives.”

As the world becomes increasingly interconnected and driven by intelligent technology, staying ahead of the curve requires not only technological proficiency but also a deep understanding of AI’s potential and a commitment to building meaningful solutions.

What are the key challenges and opportunities that tech leaders like the one interviewed see in integrating AI into smartphones, especially in the mid-range market?

Navigating the AI-Driven Future: A Conversation with a Tech Leader

The tech landscape is constantly evolving, fueled by rapid advancements in artificial intelligence (AI). Too delve into this captivating world, we sat down with a prominent tech leader to discuss the impact of AI on the smartphone market and offer valuable insights for aspiring entrepreneurs.

One of the most pressing concerns facing companies like Samsung is the ever-increasing cost of components. “Sustained component cost escalation remains a concern,” the thought leader noted. “Also, user expectations are higher than ever. Meeting these expectations through continuous innovation and delivering truly groundbreaking experiences will be crucial for success.”

looking ahead,the integration of AI into mid-range smartphones seems inevitable. “We’ll be strategically integrating AI features into our mid-range offerings, making them more smart and feature-rich,” the leader shared. “This will empower a wider audience to experience the benefits of AI without breaking the bank.”

For aspiring entrepreneurs seeking to carve a niche in the AI-driven future, the leader offered some sage advice: “Don’t just adopt AI; understand it deeply,” they emphasized. “Integrating AI effectively goes beyond simply‍ adding algorithms.It’s about understanding the opportunities and potential impact of AI on your target audience and building solutions that genuinely make a difference in their lives.”