Samsung Electronics to Announce Q3 Earnings on 31st
MX and Network Divisions Achieve 30 Trillion KRW in Sales
Samsung Electronics will launch a smartphone equipped with generative artificial intelligence (AI) next year. Additionally, the recent release of the Galaxy Z Flip5 and Z Fold5 contributed to improved performance in the third quarter.
On the 31st, during the announcement of the third-quarter results for this year, Samsung Electronics stated the outlook for the Mobile Experience (MX) business division next year: "We plan to actively apply generative AI technology to core functions frequently used by users to provide a more creative, convenient, and hyper-personalized experience."
Industry insiders interpreted this as Samsung Electronics hinting at plans to equip the Galaxy S24, which may be unveiled as early as January next year, with generative AI features.
Daniel Araujo, Head of Planning Group at the MX Business Division (Executive Director), mentioned during the earnings conference call that "smartphones will continue to be the most important access point for AI," and that they are preparing on-device AI technologies.
This means Samsung aims to lead the full-fledged 'AI smartphone' era with on-device AI technology that embeds generative AI functions within the device itself, without connecting to external clouds.
Executive Director Araujo explained, "We will apply AI to core functions used by customers and optimize based on user patterns and preferences to provide more meaningful and innovative experiences starting next year."
The third-quarter performance of the MX business division this year showed significant improvement, thanks to the launch of premium foldable phone new models, the Z Flip5 and Z Fold5.
According to Samsung Electronics, the consolidated third-quarter sales of the MX and Networks divisions (formerly the IM division) were 30 trillion KRW, and operating profit was 3.3 trillion KRW.
Compared to the same period last year, sales decreased by 6.9%, but operating profit improved by 1.9%. Compared to the previous quarter, sales increased by 17.4%, and operating profit rose by 8.6%.
Besides smartphones, other new products such as tablets and wearables also showed strong sales, and thanks to an increase in the proportion of flagship models, the selling price rose, securing a double-digit operating profit margin, the company explained.
Samsung Electronics announced that its global smartphone sales in the third quarter were 59 million units, and tablet sales were 6 million units.
However, in the fourth quarter, due to intensified competition in the smartphone market following the recent launch of Apple’s iPhone 15 series and overlapping geopolitical issues, market uncertainty is expected to increase. The company forecasts that smartphone sales in the fourth quarter will decline compared to the third quarter.
Executive Director Araujo said, "We plan to nurture foldables as the core growth engine for flagship growth."
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