Samsung Electronics Aims to Outpace Global Market Growth in Consumer Electronics
The consumer electronics market is expected to grow by 3% in 2025, but Samsung Electronics is setting its sights higher. The company plans to exceed this growth rate, driven by its focus on on-device artificial intelligence (AI) in its mobile devices, TVs, and home appliances.
Mobile Devices Business to Lead the Charge
Samsung, the world’s largest smartphone and TV maker, expects its mobile devices business to grow by 4%-5% this year. The company has been integrating AI chips into its premium flagship smartphone models, such as the Galaxy S24 series, which features real-time translation of certain foreign language phone calls.
Competition from Chinese Brands Drives Innovation
Chinese brands like Huawei and Xiaomi have emerged as serious competitors to Samsung, offering high-end smartphones at lower prices. However, Samsung’s CEO, Jong-Hee Han, believes this competition is “helpful” for the company and consumers, driving innovation and differentiation through security and convenience features rather than price cuts.
Leadership Reshuffle and Focus on Memory Chips
In November, Samsung announced a major leadership reshuffle, appointing Jun Young-hyun as co-CEO and head of the memory chip arm. The company is working to close the gap with SK Hynix in the supply of high bandwidth memory chips (HBM chips), a key component for AI leader Nvidia.
Fourth-Quarter Revenue and Operating Profit Forecasts
Samsung is expected to issue its fourth-quarter revenue and operating profit forecasts on Wednesday, with operating profit projected to reach 8.2 trillion won ($5.6 billion), a significant increase from the previous year.
“Value-Up” Plan to Increase Shareholder Returns
Samsung’s CEO has announced a “value-up” plan aimed at increasing shareholders’ returns, with details to be revealed in the coming months. The company has also unveiled a surprise plan to buy back about 10 trillion won worth of shares over the next 12 months.
Challenges Ahead
Despite the positive outlook, Samsung faces challenges, including a longer-than-expected delay in getting Nvidia’s approval for its HBM chips and weaker PC sales. However, with its focus on AI and innovation, the company is poised to overcome these hurdles and achieve its growth targets.
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