Samsung pivots to AI and high-end gadgets after profits slump
Samsung is switching things up after profits took a hit. Now they're putting AI and high-end gadgets front and center.
At their big meetings this week in Suwon, Gyeonggi Province, leaders shared plans to build smarter products and factories, while stepping away from low-margin markets.
Samsung targets AI-run factories by 2030
Consumer device profits dropped from 4.7 trillion won to 3 trillion won in the first quarter, mainly thanks to rising costs like a huge jump in DRAM prices.
Meanwhile, Samsung's chip division was the real moneymaker.
To turn things around, Samsung has stopped selling TVs and appliances in mainland China and started outsourcing cheaper production.
By 2030, they want their global factories running on AI tech: visual-display head Lee Won-jin, the first non-engineer in the role in about two decades, is leading the charge toward smarter hardware and software-driven revenue.