Meeting with Press at Milan Design Week
LLM-Based AI Introduction Scheduled for July
Next Month, 'Bespoke AI Combo' Lineup Expansion Planned
Han Jong-hee, Vice Chairman and Head of Samsung Electronics' DX (Device Experience) Division, expressed a positive outlook for the DA (Digital Appliances) business unit in the second half of this year. Unlike the sluggish performance last year, he showed confidence that meaningful results can be achieved this year. He also stated that, in the long term, Samsung could compete with Apple. He expressed ambitions to increase market share in the European market based on strong brand competitiveness.
On the 16th (local time), Han met with reporters at 'Milan Design Week 2024' held in Milan, Italy, and shared his views on the European market and the business outlook for the DA division.
Han Jong-hee, Vice Chairman and Head of Samsung Electronics' DX (Device Experience) Division, is visiting the Samsung Electronics booth at "Milan Design Week 2024" held in Milan, Italy, on the 16th (local time). [Photo by Samsung Electronics]
Regarding the poor performance of home appliances last year, Han explained, "TVs and mobiles are released all at once by series, but the DA division has many products, so that was not possible. We decided to take a year off to redefine product concepts, and a lot of investment went into operations until last year." In the fourth quarter of last year, Samsung Electronics' DA division and VD (Visual Display) division recorded an operating loss of 50 billion KRW.
Han emphasized, "From the second half of this year, (the DA division) will smile," adding, "The DA division is not number one globally, so there is room to grow. I see this as just the beginning."
He also showed confidence in competing with Apple. Han said, "There is no other company that releases as many products as Samsung does. Apple does not make home appliances or TVs, and LG has exited the mobile phone market, so if we connect well, I believe we can compete with Apple."
He added, "The way to beat (Apple) is to resolve inconvenient or undesirable tasks for consumers and make things more convenient. We started trying this little by little last year, and if we further advance it this year and next year, I believe Samsung will have the strongest weapon."
As part of this, Samsung aims to introduce generative AI based on large language models (LLM) to Bixby voice support by July. This service will understand previously untrained instructions or complex commands, remember past conversations, and continue dialogues seamlessly.
Han said, "By July, we plan to apply (voice services) directly to products launched this year," adding, "Applying it to all products will take a bit more time."
Next month, Samsung plans to add to its all-in-one washer-dryer lineup with the 'Bespoke AI Combo.' Han said, "Soon, there will be a higher-end version and a standard version. The premium will include many 'auto' features, but the standard version will not lack anything. We believe in providing consumers with a range of choices to suit their preferences."
Regarding the European market, he mentioned, "Samsung has been number one in TVs for 18 consecutive years and competes neck and neck with Apple in mobile phones, so Samsung has a good image among general consumers. The DA division also benefits greatly from this halo effect."
He explained, "As we enter the AI era, European distributors also value connected experiences. Along with energy saving, care areas such as senior care, pet care, and healthcare, and finally ease of use, distributors see many benefits in Samsung products."
However, he remained tight-lipped about specific sales targets for the European market. Han said, "Currently, supply exceeds demand. The key question is whether consumers will accept new products when they are released, so in product planning, we focus on creating products that consumers can accept."
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