Faced with fierce competition from iPhones and Chinese phones, Samsung Electronics is betting on AI-powered foldable smartphones, breathing new life into one of its most important businesses.

Samsung said its Q2 smartphone sales fell mainly due to the “effect of new model launches” in Q1. However, the Galaxy S24 series continues to see strong demand; it expects the premium segment to grow in the second half of the year, although the mass market segment is likely to slow.

Profits in the smartphone business also fell due to rising prices of key components.

The company plans to continue pushing its premium Galaxy AI products. Last week, Samsung globally launched its latest Galaxy devices including the Galaxy Z Fold6, Z Flip6, Watch Ultra, and Ring.

“Even in challenging circumstances, we will continue to invest in upgrading Galaxy AI functionality to ensure long-term sustainable growth momentum,” Samsung said.

Samsung will see "stronger operating performance" in the second half of the year, driven mainly by memory chips and the "premiumization" trend of smartphones, according to Counterpoint Research.

Meanwhile, Neil Shah, research vice president at Counterpoint Research, commented, "SK Hynix and Micron will continue to challenge Samsung in the memory space in both the AI ​​segment with the growth of HBM and in the AI ​​smartphone and PC market, as well as with close collaboration and optimization with key computing companies such as Qualcomm, Intel and Nvidia."

(According to Bloomberg, CNBC)

Profits increase by more than 1,400%, Samsung reduces supply of conventional memory chips Samsung Electronics Group said that in the second half of 2024, the company will limit the supply of conventional memory chips, to focus resources on expanding capacity to meet demand for artificial intelligence (AI) chips.