AI-Powered Homes

The battle for the consumer is shifting from the individual device to the entire home ecosystem. Samsung's launch of its "AI Home" vision at the IFA 2025 fair confirms one of the most significant transformations in consumer technology: Artificial Intelligence (AI) is no longer a simple feature; it is the infrastructure that unifies and personalizes the experience. This strategic redirection shows that value lies in the synergy between products, not in their isolated performance.

The Battle for the Ecosystem

Samsung's "AI Home" strategy is a direct response to a market need: a frictionless digital experience that goes beyond the mere product. The Korean company is betting that connectivity and interoperability, driven by AI, will be the decisive factors in brand choice. Unlike a more closed ecosystem, such as Apple's, Samsung uses AI as a horizontal connector between a diverse portfolio of products, including the new Galaxy Z Fold7 and Z Flip7 foldables, OLED televisions, and smart home appliances.

This approach not only seeks convenience but also an emotional bond with the user. The announcement of a cognitive screening video game as part of this proposal illustrates the ambition to expand the brand's value to well-being and health, creating deeper loyalty. The path to competing in this new landscape is clear: it is no longer about having the best smartphone or the best television, but about creating an ecosystem so valuable and cohesive that it becomes difficult to abandon. More information about Samsung's announcement at IFA 2025 can be found in their press room.

Beyond Hardware Sales

The adoption of an ecosystem strategy has significant revenue growth potential, directly impacting key metrics like Customer Lifetime Value (CLV) and churn rate. A customer who uses their Samsung television to control their home appliances, their foldable smartphone, and monitor their health is intrinsically more tied to the brand. This level of integration increases CLV because it raises the probability that the customer will purchase future products and services from the same brand.

On the other hand, the churn rate is substantially reduced, as the friction to switch technology providers becomes insurmountable when all devices are interconnected and personalized through AI. Leadership in this space not only ensures retention but could translate into a market share exceeding 5% in the smart TV and home appliance segment in the next fiscal year, according to sector projections. Additionally, monetization expands beyond the initial sale, opening the door to new sources of recurring revenue through software services and premium subscriptions.

Concrete Steps to Capture the Opportunity

For companies looking to capitalize on this trend, it is crucial to align their growth strategies across all business areas.

• The priority must be AI-driven interoperability. Product teams should stop thinking in terms of isolated functionalities and focus on how a customer's different devices can communicate and work together to create a unified experience. Product development should be centered on building an ecosystem, not on launching unique products.

• Marketing campaigns should stop selling individual products. It is essential to communicate the vision of the ecosystem and its benefits (convenience, security, well-being) holistically. The focus is not on the device's specifications but on the value of the complete experience it enables. For example, instead of promoting a smartphone's cameras, a campaign could highlight how the device integrates with the television to fluidly share photos.

• The strategy department needs to model how to generate new revenue streams beyond hardware sales. This involves evaluating the feasibility of software services, subscriptions, or recurring revenue models linked to the ecosystem experience. The focus is not just on product margins but on the total CLV of the customer and the creation of long-term value.