[Edaily Reporter SOYEON KIM ] It has been reported that Roh Tae-moon, CEO of SamsungElectronics and head of the Consumer Electronics (DX) Division, has instructed executives of the Mobile Experience (MX) Business Division to implement rigorous cost efficiency measures and drive business innovation based on AX (Artificial Intelligence Transformation). With the urgent need to restore profitability in the Consumer Electronics business—which slipped into an operating loss in the second quarter of this year—the company is taking a head-on approach through a “rethink of AX.”

According to industry sources on the 6th, CEO Noh convened executives from the MX Business Division late last month to convey management guidelines centered on the AX transition, aggressive cost efficiency measures, and the expansion of the services business.

President Noh is said to have specifically cited competitor Apple’s April–June earnings as an example, emphasizing the importance of expanding hardware sales and establishing a stable revenue structure for the services business. Despite rising semiconductor chip prices, Apple recorded its highest-ever quarterly revenue, driven by strong sales of iPhones and Macs.

In contrast, SamsungElectronics’ MX Division posted an operating loss of approximately 700 billion won in the second quarter of this year, and the DX Division as a whole also recorded an operating loss of about 800 billion won. This marks the first time the MX Division has posted a quarterly loss. President Noh called for expanding shipments and sales of all Galaxy products, raising selling prices, and implementing rigorous cost efficiency measures, including reductions in development and quality costs.

President Noh also emphasized specific implementation plans for the AX transition and the achievement of key goals for each business unit, while presenting a strategy to transform core software—including Galaxy AI, Samsung Health, and Samsung Wallet—into revenue-generating services starting next year. This is interpreted as a strategy to expand the hardware-centric business structure into a service-centric one, thereby diversifying the revenue base of the finished product business.

President Noh, who also serves as head of the MX Business Division, is a former engineer who has driven Samsung’s mobile business to new heights by taking bold risks at every major turning point. He has led the competition in AI smartphones by spearheading the popularization of Galaxy AI and the establishment of an on-device AI ecosystem, and has also taken the lead in cultivating foldable phones as a new growth engine. Following strong sales of the Galaxy S26 series this year, the Galaxy Z Fold8 Ultra, Fold8, and Flip8—released in the second half of the year—sold 1.44 million units during the domestic pre-sale period from July 28 to August 3, setting a new all-time record for Galaxy smartphone pre-sales.

Last November, President Noh became the first head of the MX Business Division to be formally appointed as head of the DX Division. Previously, the DX Division had been led primarily by heads of the VD Business Division, often referred to as “TV men.” This is seen as a reflection of the shifting focus of the finished goods business from TVs to mobile devices. A source in the electronics industry stated, “The first appointment of a DX Division head from the mobile sector caused a much bigger stir within SamsungElectronics than expected.” Amid these developments, having hit the “mobile deficit” roadblock, President Noh now faces the challenge of driving profitability improvements and leading the transition to AX.

The challenges facing President Noh are also closely tied to SamsungElectronics’ overall AI transformation. SamsungElectronics recently conducted AI training for its executives. In executive evaluations, the weighting for “enhancing AX capabilities” was significantly increased from the previous 2–5 points to 20 points. SamsungElectronics’ strategy is to accelerate company-wide AI innovation that fundamentally changes the way work is done.