'The First Year of AI Home Appliances' Appliances and TVs Perform Well in a Challenging Market

Mobile Phones Also Benefited from AI Technology
Diple and Jeonjjang Also Up Compared to Previous Quarter

Samsung Electronics' Video Display (VD) and Digital Appliances (DA) performance in the third quarter of this year is evaluated as holding up well despite challenging market conditions. Typically, the third quarter is an off-season for the home appliance industry, but Samsung Electronics maintained its competitiveness by launching innovative products that actively utilize artificial intelligence (AI) technology. In particular, Vice Chairman and DX (Device Experience) Division Head Han Jong-hee declared this year as the 'Year One of AI Appliances' and released new home appliances with advanced AI technology, which is considered a major achievement.

A Samsung Electronics model is introducing the 'Samsung Electronics AI Sale Festa' at the Samsung Store Daechi branch.
[Photo by Samsung Electronics]

The VD/DA division is expected to record an operating profit in the 400 billion KRW range despite difficulties such as rising panel prices and the end of the air conditioner peak season. Sales are projected to slightly decrease from the previous quarter to 14.366 trillion KRW.

The Mobile Experience (MX) and Network divisions also appear to have achieved positive results with the help of AI technology. Securities firms estimate the third-quarter provisional sales of the MX/Network divisions at approximately 31 trillion KRW and operating profit at 2.6 trillion KRW. These figures represent increases of about 14% and 16%, respectively, compared to the previous quarter.

According to IBK Investment & Securities, Samsung Electronics' mobile phone shipments seem to have increased by 5% compared to the second quarter by focusing on the high-end smartphone market. It is also analyzed that profits were maintained due to a decline in raw material prices. Cost control and cost reduction are expected to slightly improve profitability compared to the second quarter. Raw material prices, which had been a burden until the second quarter, are expected to decline in the third quarter.

Last month, the number of Samsung Electronics mobile devices supporting Galaxy AI surpassed 20 million units. Sales of the Galaxy S24 series and Galaxy Z Flip6 and Z Fold6, which support Korean AI functions, continue, and Galaxy AI is being applied to previously released devices, leading the popularization of mobile AI. Recently, Samsung has been sequentially releasing the Galaxy S24 Fan Edition (FE), which includes Galaxy AI features but is priced under 1 million KRW, and is preparing to launch the Galaxy Z Fold6 Slim.

Display and automotive electronics (vehicle electric and electronic equipment) affiliates are also expected to perform well. Securities firms estimate Samsung Display's operating profit at 1.378 trillion KRW and Harman, the automotive affiliate, at 350 billion KRW. These figures represent increases of 36.4% and 9.4%, respectively, compared to the previous quarter.

This content was produced with the assistance of AI translation services.