Samsung Electronics Bets on AI-Powered Home Appliances for 2025 Rebound

Samsung Electronics chief says expectations are 'high' for 2025, firms up release of Ballie

Samsung Electronics CEO Han Jong-hee speaks to Korean reporters at CES 2025 in Las Vegas, Nevada, on Jan. 7, 2025, (local time). (Yonhap) Samsung Electronics CEO Han Jong-hee announced Tuesday (local time) that the company's less-than-satisfactory performance in the fourth quarter of 2024, which fell significantly below market expectations, was "an opportunity for [the company] to take a step forward," insisting that the company has "high expectations for 2025." During a press conference held at Caesars Palace Hotel in Las Vegas on the same day, Han said that Jun Young-hyun, the leader of Samsung's device solutions division that oversees semiconductors, is "striving to turn things around" in that sector. Han heads Samsung's device experience division, which encompasses the company's smartphone and home appliance departments, while Jun leads its memory business. Han also remained optimistic that the lineup of home AI appliances unveiled at CES 2025 will provide momentum for the company's recovery. "The response from the market has been encouraging," Han noted, adding that other investments are being made into potential fields of growth, referring to how Samsung has been acquiring on-device technology, robotics and medical device companies. "Executive chairperson Lee Jae-yong has brought up 'never-before-seen technology,' and I believe that we will be able to showcase the product utilizing that in the second half of this year and next year," Han quipped. A definitive release date for Samsung's AI companion robot Ballie, whose launch was revealed rather suddenly during a press conference the day before, was also given. "We expect the product to launch in Korea and the US in May or June of 2025," Han said, adding that the price is "still under review." In response to a question about a robot similar to Ballie exhibited by Chinese company TCL, Han stated, "Since we are going on the right track, our competitors have emerged in the market with a similar product. In order to differentiate our product, we will emphasize what features of the robot we want consumers to focus on." However, when asked about his personal opinion on the size of the gap between China's home appliance AI technology and Samsung's, he replied by claiming to "not have an in-depth grasp of China's technology." To remain competitive in the AI era, Han said, "We are aiming to develop our in-house AI model Gauss to evolve a competitive AI model that fits Samsung Electronics like a glove." "Samsung may not be one of the fastest movers in the robotics field, but since we have started, we are working to invest and secure technology," he said.

Home AI to drive earnings recovery, Samsung Electronics CEO says

Samsung Electronics CEO and Vice Chairman Han Jong-hee speaks during a meeting with reporters at Caesars Palace in Las Vegas, Tuesday (local time), on the sidelines of CES 2025. Courtesy of Samsung Electronics Samsung estimates W6.5 tril in Q4 operating profit, thereby missing forecastBy Nam Hyun-woo LAS VEGAS -- Samsung Electronics CEO and Vice Chairman Han Jong-hee said, Tuesday (local time), that the company's artificial intelligence (AI) vision for smart homes, unveiled at CES 2025, will help drive momentum for its earnings recovery. The remarks followed Samsung's estimate that its operating profit for the fourth quarter of 2024 reached 6.5 trillion won ($4.47 billion), below an analysts' consensus of 7.97 trillion won. Regarding the company's AI initiatives, Han expressed confidence that Samsung will overcome market concerns about its competitiveness this year. "The home AI we presented at CES 2025 is a vision that redefines ever-evolving AI technology from the customers' perspective, based on over a decade of our accumulated experience in the smart home business," Han said during a press conference. "Our goal is not only to increase the number of AI-powered products but also to realize a home AI system that seamlessly connects devices, anticipates customer needs and responds intuitively and smartly." During CES 2025, Samsung showcased examples of more personalized AI experiences, supported by its AI-embedded home appliances and SmartThings Internet of Things technology. In doing so, the company chose to position its latest products in a secondary role at the exhibition, emphasizing that its strategic focus is now on AI. Citing positive feedback from global vendors, Han expressed confidence that this vision will serve as the "momentum" for the recovery of the company's earnings. In its earnings guidance released earlier Tuesday, Samsung estimated its fourth-quarter operating profit at 6.5 trillion won, up 130.5 percent from a year earlier. The company expected that revenue would reach 75 trillion won, growing 10.65 percent year-on-year. Although the numbers reflect year-on-year improvements, they are seen as disappointing given analysts' average estimates, which had forecast an operating profit of 7.97 trillion won and sales of 77.4 trillion won. Samsung to achieve HBM chip supply goal, but needs new design, says Nvidia CEO 2025-01-08 15:10 | Tech As this is only earnings guidance, Samsung did not provide a detailed breakdown of earnings by business division. However, analysts believe the company's smartphone business has slowed, while its semiconductor division continues to face challenges due to unfavorable market conditions. "It is true that the (fourth-quarter) earnings are lower than market expectations," Han said. "But we believe that it can be an opportunity for us to make a leap forward. We have Device Experience and Device Solutions divisions, and the Device Solutions division has Vice Chairman Jun Young-hyun, who is now striving for a rebound, so you can expect improvements this year." Samsung's Device Experience division, led by Han, includes smartphones, home appliances, visual displays and health care businesses. The Device Solutions division, headed by Jun, is responsible for memory, chip design and foundry businesses. "Samsung will overcome every challenge by committing ourselves truly to the very fundamentals of our business," he said. "And the fundamental we believe is making an unrivaled technology innovation toward product quality and customer value. To materialize this, we have reorganized our teams to put greater emphasis on product quality and AI businesses." During its personnel shakeup in November, Samsung created a product quality innovation committee headed by Han himself, ensuring that he would directly oversee the quality of the company's home appliances. Also, the company established a team serving as the control tower of its AI business under Chief Technology Officer Cheun Kyung-whoon, to make sure it can promptly respond to new technologies in not only devices but also services. Attendees visit Samsung Electronics' booth at CES 2025 at the Las Vegas Convention Center, Tuesday (local time). Yonhap Favorable responses Han said the company decided to focus on the customer experiences that AI-powered appliances can deliver, as it is the most effective way to leverage Samsung's broad product portfolio. "Our product ranges from smartphones, TVs, home appliances, electronic auto parts and a slew of other items that people use in their daily lives, and when we think about how to leverage this strength, it ultimately comes down to delivering a seamless connected experience," he said. "And that experience is about having AI take care of the things that are inconvenient, undesirable or difficult for the consumer. The ultimate goal when AI is integrated into products is automation." Han said that the company's strategy of focusing on customer experiences that AI-powered appliances can provide is receiving positive responses from vendors. "When we said last year that we would provide connected experiences through AI, the feedback was more like, 'Okay, that sounds fine, but we don't really understand what it means,'" Han said. "This time, however, the general response has been that they now fully grasp our strategies and find them attractive. Since we shared a long-term vision with them, they now have a clearer understanding of our roadmap. As a result, we anticipate changes not only in shop displays but also in how they approach consumers."

Samsung Electronics banking on AI to outpace global growth in smartphones, home appliances

Samsung Electronics plans to ramp up its on-device AI business, with the aim of exceeding global market growth in the consumer electronics segment this year. The global consumer electronics market for smartphone, TV and home appliances will grow roughly 3% in 2025, Jong-Hee Han, chief executive officer of Samsung Electronics, told CNBC's Chery Kang. Samsung, the world's largest smartphone and TV maker, expects its mobile devices business to grow by 4%-5% this year, while growth in TV and home appliances unit is also likely to accelerate, said Han, also the head of device eExperience (DX) division of Samsung Electronics. Samsung Electronics has been ramping up efforts to connect its devices to artificial intelligence, installing AI chips in its fridges, washing machines and robot vacuum cleaners. It has also been bolstering its AI functions on its premium flagship smartphone models, such as the Galaxy S24 series, which has multiple AI-enabled features including real-time translation of certain foreign language phone calls. This comes as Chinese brands such as Huawei and Xiaomi have emerged as serious competitors to Samsung by offering high-end smartphones at significantly lower prices. Competition from Chinese companies is 'helpful" for Samsung and the consumers, Han said during the interview, noting that the company aims to differentiate its products with more security and convenience, rather than lowering prices.

Samsung CEO Touts AI Fridges and Washers After Year to Forget

Samsung Electronics Co. is ramping up investment in artificial intelligence for consumer electronics, betting on its ubiquitous presence in gadgets from smartphones to TVs to help it stake out a spot in the AI arena. Samsung is counting on its unique market position as a leader in not just mobile devices but also home appliances like refrigerators and washers, Chief Executive Officer Han Jong-Hee said in an interview at CES in Las Vegas. The company wants to better connect the half-billion devices it sells every year to help make up for missteps that have cost it the lead against big tech rivals in areas such as top-end memory and generative AI.