AI appliances contribute 50% sales in H1 2025; premium segment to drive growth: Samsung

The company is also increasing its retail presence and plans to add 150 more exclusive brand outlets pan India, taking the total number to 900 by the end of this year

New Delhi: Consumer Electronics major Samsung, which is increasing its play in the premium appliances segment, expects artificial intelligence-powered and internet-connected appliances to contribute 50 per cent of its total sales in the first half of 2025, a company official said.

The company expects a ‘single-digit growth’ overall in the refrigerator and washing segment in 2025. However, it estimates a double-digit growth in the premium segment.

Besides, the company is also increasing its retail presence and plans to add 150 more exclusive brand outlets pan India, taking the total number to 900 by the end of this year, Samsung India Vice President Digital Appliances Business Ghufran Alam said.

On the integration of artificial intelligence (AI) in appliances, Samsung said the adaptability of such new-age technologies is “very high” among Indian consumers, who are looking at it as a practical solution for their requirements.

Samsung is democratising its portfolio of appliances by launching more products under its AI range, from segments like washing machines, and refrigerators to residential air-conditioners.

“In the three months, we have launched top-load washing machines under Bespoke AI. We have launched a frost-free 300-litre refrigerator, equipped with AI functions. So, this is the major trend, which is coming through, and we want to continue that,” Alam told PTI.

Earlier in April 2024, Samsung India said it expects 70 per cent of appliance sales here will come from AI-powered products by the end of 2025.

“Last year (2024), AI appliances accounted for only 10 per cent of Samsung’s overall revenue in India. By the end of the year, the contribution of AI appliances to Samsung’s overall sales reached 28 per cent, and this portion increased to 50 per cent as of H1 exit, 2025,” Alam said.

“We do expect to reach 70 per cent by the end of this year,” he added.

Moreover, the integration of AI is also helping Samsung to expand its play into the premium segment, which is witnessing higher growth across the industry, led by key factors like rising disposable incomes, rapid urbanisation, digital influence through social media and favourable demographic shifts.

“The rising sales of AI appliances has helped Samsung become the number 1 brand in premium refrigerators,” he said.

“For refrigerators, the premium segment accounts for around 10 per cent of the overall refrigerator business (by value) and is estimated to be growing in double digits (15 per cent) in 2025.”

When asked about the sales in the first half of 2025, Alam said in the last two months, “because of unpredictable weather, there has been some kind of softness in demand” for compressor-based cooling products like room air conditioners and refrigerators.

However, he hopes for a recovery in sales during the second half, based on the sales data of the last few years, when people purchased these summer-centric products even during the festive season sales.

“Refrigerator is round the year product, now in AC, also, we are seeing dependability of H1 (having extreme summer months) is going down for last two years,” he said.

“So, we see a robust demand, looking at the festivals, which we have, starting with Onam, and then to Durga Puja and Diwali in North India. So, we see a robust demand for these products in the second half, and we are prepared for it.”

In FY24, Samsung India’s total income was Rs 1.02 lakh crore, where revenue from the HHP (handheld phones) segment, which covers operations relating to mobile phones & accessories, at Rs 71,157.6 crore.

While Home Appliances (HA) business, which covers its washing machines, air conditioners, refrigerators and microwave ovens, was Rs 11,350.1 crore.

Earlier this year, Samsung President and CEO of Southwest Asia JB Park said he expects its appliances and display business to scale up substantially in India, contributing to half of the topline in the next three years.

Samsung is launching an AI Laundry Combo, which offers all-in-one washing and drying convenience with smart automation priced at Rs 3.19 lakh, an AI double door refrigerator starting from Rs 44,000 onwards, AI top load washer starting at Rs 24,500 for the 8kg model.

Earlier this year, it launched 19 models of AI windfree air conditioners.

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