Samsung Electronics (SSNLF, Financial), a major player in the global electronics market, is focusing heavily on artificial intelligence (AI) investments to enhance its consumer electronics offerings. This strategic move aims to strengthen Samsung’s position in AI across a broad spectrum of devices, including smartphones and home appliances like refrigerators and washing machines. CEO Han Jong-Hee underscored the importance of leveraging Samsung's unique market position to better connect its extensive range of devices, potentially offsetting setbacks in high-end memory and generative AI sectors.
In recent performances, Samsung's stock has witnessed a decline of one-third in 2024, mainly due to lagging behind competitors like SK Hynix in the AI accelerator memory sector and delays in approving Nvidia's (NVDA) HBM storage chips. Despite these challenges, the smartphone division has shown robust performance. Samsung is highlighting advantages in smart home technology, differing from competitors Apple (AAPL), Amazon (AMZN), and Google's (GOOGL) smart home offerings by integrating the home connection hub directly into consumer appliances.
Samsung has also introduced a new TV AI initiative to compete with Google's TV software, offering features like real-time translation and content enhancement. With a significant emphasis on AI research beyond semiconductors, Han plans to ramp up investments in this area. The SmartThings platform, which connects devices like smartphones and TVs, now serves 370 million users. Samsung's focus on AI, robotics, medical, and automotive technologies aims to drive growth.
