Bloomberg Tech: Asia 07/25/2025

Market Position & Competition - Samsung's smartphone shipments were neck and neck with Apple in the first quarter, while Chinese filmmakers are closing in [1] - The company focuses on consumers rather than competition, aiming to bring better experiences and welcomes others to join the foldable category it created [5][6] - Chinese competitors are catching up in the legacy chip segment, posing a risk to Samsung's margins and R&D investment [29] Product Innovation & Strategy - Samsung is banking on its new foldable smartphone to offset pressure on the chip business, emphasizing durability and performance without compromise [3][4] - The company integrates AI agents at the system level, with Gemini from Google as the first agent in Galaxy devices, and plans to innovate with multiple AI assistants [15][16] - Samsung aims to provide consumers with choices by integrating multiple AI agents, not forcing them to choose just one [17][18] Supply Chain & Manufacturing - Samsung emphasizes its complete ecosystem, from components to devices and applications, aiming for synergy across different business units [7] - The company has established multiple manufacturing facilities in key regions globally, providing flexibility in responding to changes in trade policies [10] - Samsung is optimizing manufacturing locations in Vietnam, Korea, and India to address potential tariff concerns, aiming for quick adjustments once decisions are made [12][13] Financial Outlook & Challenges - An analyst maintains a neutral rating on Samsung, citing structural challenges and a lack of innovation in the core semiconductor memory business [22][23] - The analyst estimates Samsung's earnings per share in 2026 will be 25% below the prior peak, indicating a recovery from a low base but without exciting earning power [25] - The mobile business unit may need to procure more components from third-party vendors due to internal component issues [27] Smart Home Ecosystem - Samsung is trying to better connect devices with AI at the core, hoping to turn everyday homes into responsive spaces [32] - The SmartThings platform connects over 380 partner brands and thousands of their products, working closely with industry leaders on standardization efforts [33] - The smart home market is growing by 2x every year, with over 400 million registered users for the SmartThings service [35]