On the heels of mixed results from its fourth-quarter and full-year performance, the 2025 outlook from Samsung officials includes focusing on artificial intelligence (AI) and smart home technologies to drive growth amid challenging market conditions.
Despite achieving record sales of $76.4 billion in semiconductor revenue for 2024, Samsung faces difficulties keeping pace in the highly competitive AI chip market. The company’s mobile division saw a 25% decline in operating profits, while its TV business experienced an even sharper 60% drop. Samsung is placing big bets on AI and smart home technologies to regain momentum.
Samsung is doubling down on AI-powered home devices, including its high-bandwidth memory chips designed to optimize AI processes, which will be crucial to upcoming product launches in 2025.
“The management team, including myself and all the employees at Samsung Electronics, are very aware of the challenges the company is facing and we are fully committed to overcoming the current difficulties,” Chief Financial Officer Sooncheol Park said during the company’s earnings call. “Samsung’s business portfolio spans a diverse range of industries that operate within different business cycles and market dynamics, which cause fluctuations in our company’s performance. We are confident that this diversity along with the progress being made in our businesses will drive gradual recovery.”
As part of its strategy, Samsung is integrating AI into all aspects of its ecosystem, including its SmartThings platform, to create a seamless and hyper-personalized home experience, Park said. At CES 2025, Samsung unveiled its “Home AI” vision, which aims to enhance the interactivity and intelligence of connected devices, anticipating user needs through smart features. This includes personalized AI-powered appliances such as refrigerators, washing machines and vacuum cleaners that learn from users’ routines to optimize performance and efficiency.
Samsung also plans to incorporate advanced security features into its home devices, Park added, by leveraging Knox technology to protect user data. Despite potential short-term challenges, including weaker smartphone demand and global economic uncertainties, Samsung officials remained optimistic about its ability to grow through AI innovations. With a focus on AI-enhanced smartphones, premium tablets and connected devices, the company said its ongoing investments in AI will drive growth in both the consumer and enterprise sectors.
This emphasis on AI aligns with larger market trends in the market. Research from PayTechFocus Intelligence reveals that the average consumer now owns six connected devices, with millennials and bridge millennials leading at seven devices on average. The study highlights increased adoption of smart home technologies, such as smart refrigerators and connected thermostats, which have seen ownership increases of 4% and 5%, respectively, from 2019 to 2023. Additionally, there has been a 31% rise in consumers using smart devices for home security.
Looking ahead, Samsung expects its investments in Smart Home technology and AI will help drive recovery in earnings despite a challenging market landscape, Park said. The company is optimistic about the potential of its Home AI initiatives to create new revenue streams and improve customer engagement as it continues to innovate within the smart home sector.
According to executive vice president Jaejune Kim, “we expect AI demand to continue its momentum.”
KL Roh, vice president of visual display, noted “we will integrate AI in all connected device experiences based on SmartThings and on the home AI business for hyperpersonalized consumer experience. At the same time, we will extend our lead in the AI screen market by expanding adoption of security technology based on Samsung Knox, our in-house security solution.”
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