We had earlier heard, that Samsung was en-route to a major management reshuffle, specially in the smartphone division as company’s profits plunged. Well, the cloud of uncertainty just veiled off the heart of Samsung’s Smartphone business chief.
The smart phone division of the company is running a big time low with the worst earnings in the three years. The fact that many local Japanese and Chinese ‘mobile’ invasions has led to a decent hoopla in the company’s future of making smart phones is undeniable.
Head of the Electronics giant’s mobile division J.K. Shin, Semiconductor business chief Kwon-Oh-hyun and Consumer Electronics head Yoon Boo-keun were the ones in cross-hairs. Company’s profits on all those three fronts nose-dived to record levels.
WSJ had earlier reported that the first major shake-up in management would come in the form of Co-CEO B.K. Yoon assuming the responsibility as the head of Samsung’s mobile division, which is(and will be) headed by J.K. Shin
Well, apparently, as Reuters puts it, Samsung Group’s heir apparent opted to keep the man his ailing father appointed while the patriarch’s future is uncertain. All three executives have kept their jobs, which many think, is a strategic move by the likely successor Jay Y. Lee, to consolidate his own position.
Taking the risk to dissolve the entire smart phone division in one go that also in a moment of such a huge despair didn’t get the better of Lee Junior. And seeing the condition and falling prices of the Samsung smart phones, Vice Chairman Jay Y Lee isn’t in a hurry to quit the smart phone market at the global level.
With Samsung undergoing major changes in the midst of the succession process, like selling affiliates and listing units, it would have been a blunder to rejig the leadership, something which Lee Junior didn’t want to commit.
The Senior Vice President of the company reminded the viewers and the users that the smart phone heads were the major contributors in the emergence of Samsung smart phones and would be given a chance to turn the business around. Invasions of Xiaomi and Apple’s smart phones has shrunk Samsung’s smart phones market for the last three quarters. The company is emphasizing on follow up appointments and reorganization plans due for the firm later this week.
(P.S. For The Users: Sit back and relax because no matter what’s coming on our way, we would always end up on the greener side of grass !!!)