Samsung Electronics is expecting a fourth-quarter operating profit of 6.5 trillion won (approximately $4.47 billion) for 2024, a disappointing figure that falls short of analysts' expectations of 7.97 trillion won.

This announcement was made at CES 2025 in Las Vegas, where CEO and Vice Chairman Han Jong-hee articulated the company's renewed focus on artificial intelligence (AI) and its vision for smart homes, asserting that these innovations will be pivotal in driving the company's earnings recovery.

“Our home AI initiative, unveiled at CES 2025, represents a major transformation in AI technology tailored to the needs of our customers,” said Han.

He highlighted that this vision is a culmination of more than a decade of experience in the smart home sector, aiming to create a seamless system that connects devices, anticipates user needs, and responds intelligently.

At CES, Samsung showcased AI-embedded home appliances alongside its SmartThings Internet of Things integration, moving away from merely highlighting new product features to emphasizing its broader AI strategy.

Feedback from global vendors at the exhibition has been predominantly positive, bolstering Han’s confidence in overcoming competitive market challenges.

While the anticipated fourth-quarter operating profit reflects an impressive 130.5% year-on-year increase, the expectations set by analysts dimmed hopes for an even larger recovery.

Their estimates had forecast both higher operating profits and revenue of around 77.4 trillion won, indicating that, despite improvements, the company faces significant hurdles within a sluggish smartphone market and a struggling semiconductor division.

Han noted that the numbers were below market expectations but framed them as an opportunity for growth.

He pointed out the restructuring within the company, particularly the formation of a product quality innovation committee which he leads, to ensure high standards in the company’s offerings.

“Our commitment to technology and product quality is unwavering,” Han stated, emphasizing the importance of innovation in maintaining a competitive edge.

He also mentioned that an AI-centric team under Chief Technology Officer Cheun Kyung-whoon has been established to facilitate swift technological advancements in both devices and services.

Samsung’s strategy emphasizes enhancing customer experiences through AI integration in its diverse range of products—from smartphones and home appliances to TVs and automotive components.

Han expressed that the ultimate vision for AI integration is automation, aiming to eliminate the inconveniences often faced by consumers.

With the encouraging feedback from vendors and the clarity brought to Samsung’s long-term roadmap, Han remains optimistic about adapting marketing strategies to better engage customers.

He noted a shift in understanding among partners from skepticism to enthusiasm, indicating that they now recognize the potential impact of Samsung's AI initiatives on consumer experiences and overall product engagement.

"As we move forward, we expect to see significant transformations not just in product displays but in the way vendors interact with consumers," Han concluded, reinforcing Samsung's commitment to lead in the evolving landscape of AI technology.

As the tech giant navigates a challenging market landscape, the emphasis on home AI might just be the lifeline that Samsung needs to regain its footing and emerge stronger in the coming year.