Samsung faces exodus from mobile biz

Three deputies to JK Shin, the head of Samsung Electronics mobile division, are leaving. Reuters has reported this quoting an unnamed source on Thursday. The executives who are possibly leaving include global marketing chief DJ Lee. Samsung hasn’t officially confirmed it.

Mobile division head Shin himself was retained amid speculation earlier that he would be shifted from the post during the annual reshuffle of the company. Shin was retained despite a fall in smartphone sales of Samsung and the prediction that its profits this year will be the lowest in three years. The share of Samsung in the smartphone market has fallen year-on-year for the last three quarters, squeezed by Chinese rivals such as Xiaomi Technology Co Ltd at the low-end and Apple Inc’s iPhones in the premium segment.

J-K-Shin-Samsung-Co-CEO

The company announced only 165 executive-level promotions in its annual reshuffle, the lowest in at least four years, underscoring the strains it is under. The chaebol may also cut its executive-level positions in mobile communications by 25 percent, media reports suggest.

There will be greater pressure on Shin going forward as he has been given another chance, given his past contributions. “But he will definitely continue to feel the pressure going forward,” IBK Securities analyst Lee Seung-woo told Reuters. Samsung is expected to announce its annual business reorganisation plan by next week.

The company earlier this week said it will sell its fibre optics business to US speciality glass maker Corning Inc, its second exit from a non-core business this quarter. Media reports also suggest the company could hive off its medical equipment business.

Samsung is the top most smartphone vendor in the world but its shipments has decreased to 78.1 million from 85 million.

In the Indian market Samsung’s share decreased to 24 percent in Q3 2014 from 29 percent in Q2 2014 and 32.9 percent in Q3 2013.

Company’s rival, Apple also suffered loss as their smartphone market share dipped to 12 percent from 12.9 percent globally.

Samsung which became the top seller in the last three years, is proud on responding quickly to market demand and ability to produce handsets according to the needs of users and mobile carriers around the world.

The company plans a significant change in smartphone strategy for next year and produce more efficient phones, which indicates that the number of new handset models might be reduced. This will allow Samsung to better focus on each product and to purchase components at cheaper prices to save costs.

 

editor@gizmolead.com

 

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