Samsung Betting Huge on 5G Connectivity and AI With a Whopping $160 Billion Investment That Will Also Prop up Its Mobile Business

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Samsung revealed its plan to inject nearly $22 billion in various emerging technologies such as artificial intelligence and 5G over the course of the next three years starting today. This move will step up the company’s efforts to drive sustainable growth by strengthening its position in existing markets and debuting in new ones. The company has sprung to action after the latest financial report which showed declining smartphones sales. The lackluster performance of the Galaxy S9 series was partly responsible for these disappointing results.

Samsung’s Latest Investment Plan Will Be Spread Out for a Period of Three Years

Investment in AI and 5G are a part of the company’s $160 billion investment plan which will enable it to diversify business growth. This will not just help make Samsung’s operations more sustainable but also create employment opportunities, particularly in South Korea.

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Even though the company hasn’t revealed the detailed investment plan, it stated that it will plough in most of the money itself and won’t rely on external sources. The company has lagged behind in the field of artificial intelligence but it is now seeking to change that with the introduction of Bixby 2.0, an upgraded version of its digital assistant that will reportedly be faster and more versatile than the previous generation one that debuted with the inception of the Galaxy S8 and Galaxy S8 Plus.

Even though the company failed to keep pace with AI, it has not made the same mistake with 5G. Samsung has even landed an equipment procurement contract from Verizon in the United States. The new investment plan plans a six-percent capex increase compared to the previous three years.

The company will also introduce noteworthy innovations in the smartphone segment for 2019. The upcoming Galaxy S10 series will presumably have an in-display fingerprint scanner of the ultrasonic variety and a 3D camera to produce detailed Animoji and assist in accurate facial recognition. As of now, the company is gearing up for the launch of the Galaxy Note 9 tomorrow.

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News Source: Reuters