Samsung declines to shake up management amidst shrinking smartphone profits

Posted:
in iPhone edited December 2014
Despite speculation that Samsung was planning to institute major personnel changes its mobile division, the South Korean electronics maker has instead announced that it will stay the course with its mobile management team.

Samsung


Samsung's announcement on Monday revealed that co-CEO J.K. Shin will remain in charge of Samsung's mobile division, which is responsible for smartphones, tablets and wearable devices. Though Shin remains in his existing position, 11 executive changes were made in an effort to improve business performance, according to Bloomberg.

Still, Samsung's changes were viewed as minor, as the company largely opted to maintain the status quo. Observers believe Samsung may have chosen to focus on internal stability in the face of a highly competitive market.

Weeks ago, Samsung announced a 73.9 percent drop in profits from its mobile division. During that same quarter, Apple saw its operating profits grow 11.3 percent to $11.2 billion.

With the rival companies headed in opposite financial directions, speculation began to mount that Samsung could undergo a shakeup in an effort to boost plummeting profits. It was speculated that B.K. Yoon could take over Shin's role, but Yoon will instead remain solely as head of Samsung's consumer electronics business.

Market watchers believe Samsung's troubles could continue with Apple's entrance into the jumbo-sized "phablet" market this fall with the debut of the 5.5-inch iPhone 6 Plus. That device is pitted against Samsung's Galaxy Note series, which has dominated the phablet space for years.

Samsung ships about twice as many smartphones per quarter as Apple does, but many of those are low-end, low-margin devices that do little to help the company's bottom line. In terms of mobile profits, Samsung is a distant second behind Apple, though virtually all other mobile companies barely break even or actually lose money.
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Comments

  • Reply 1 of 38

    So they're letting the captain go down with the ship then.

  • Reply 2 of 38
    sockrolidsockrolid Posts: 2,788member

    Originally Posted by AppleInsider View Post



    ... the South Korean electronics maker has instead announced that it will stay the course with its mobile management team.

     

    Because, hey, Samsung's declining revenue isn't their fault.

    It's Apple's fault.

  • Reply 3 of 38
    The old definition of "INSANITY" applies here... but in this case we'll call it "Insammity."

    Personally I'm happy to see Samsung "stay the course" since "saving face" is a part of the culture and co-CEO J.K. Shin is in charge of the smart phone division, let's see if the whole company can become demoralized by his impotence in the face of Apple.
  • Reply 4 of 38
    maestro64maestro64 Posts: 4,485member

    Looks like the Samsung's copy machine does not allow it to copy money, its just prints black pages, how that managements fault.

  • Reply 5 of 38
    Great news for Apple.
  • Reply 6 of 38
    paul94544paul94544 Posts: 1,027member
    Quote:

    Originally Posted by MacVicta View Post



    Great news for Apple.

    You are all so deluded, just opinion nothing more, no analysis, no thinking, typical of morons

  • Reply 7 of 38
    gqbgqb Posts: 1,934member
    Quote:

    Originally Posted by TheWhiteFalcon View Post

     

    So they're letting the captain go down with the ship then.


    No, they're letting the ship go down with the captain.

  • Reply 8 of 38

    Eff yes! Go down in a blaze of “glory”! Don’t remove the parasites! Go Samsung!

  • Reply 9 of 38
    Quote:

    Originally Posted by TheWhiteFalcon View Post

     

    So they're letting the captain go down with the ship then.




    There's a ship to go down? They've been sinking for years.

  • Reply 10 of 38

    January 20th, 2015 is going to be an EPIC day. That should be the day Apple announces their holiday quarter earnings and we find out just how badly they killed it this season.

     

    And a few days before/after we're going to see just how badly Samsung did trying to sell phones in the middle of an iPhone 6 hurricane.

  • Reply 11 of 38
    Originally Posted by Lord Amhran View Post

    There's a ship to go down? They've been sinking for years.

     

    Isn’t it funny, a ship that leaks from the top. And the bottom. And the sides. And has on board a standing order to bucket water into it.

  • Reply 12 of 38
    quinneyquinney Posts: 2,525member
    Obviously they have a secret plan for success :p
  • Reply 13 of 38

    No one got fired? Let me guess why: because the CEO of Samsung Electronic is the son in law of Samsung Group's Chairman; the Marketing VP is the CEO's cousin on his father's side, twice removed; the COO is CIO's "uncle"; and the Chief Designer's father's friend has a direct connection to the Korean Presidential Office.

     

    It's a happy dynasty. Why should anyone get fired?

  • Reply 14 of 38

    I believe Samsung's talented and brave Mobile Management Team accepted to bend over and take it all dry just to keep their jobs! :smokey: 

  • Reply 15 of 38
    Isn’t it funny, a ship that leaks from the top. And the bottom. And the sides. And has on board a standing order to bucket water into it.

    Samsung Mobile is like a ship with a hole in the bottom. And JK Shin's job is to point the ship in the right direction. :lol:
  • Reply 16 of 38
    Quote:

    Originally Posted by zoffdino View Post

     

    No one got fired? Let me guess why: because the CEO of Samsung Electronic is the son in law of Samsung Group's Chairman; the Marketing VP is the CEO's cousin on his father's side, twice removed; the COO is CIO's "uncle"; and the Chief Designer's father's friend has a direct connection to the Korean Presidential Office.

     

    It's a happy dynasty. Why should anyone get fired?




    Well, it's a business model like any other. They should just raise taxes on Apple devices by 1000% and offer a 50% rebate on ships to any country that does the same. I'm willing to bet it'd work ;)

  • Reply 17 of 38
    Quote:

    Originally Posted by Paul94544 View Post

     

    You are all so deluded, just opinion nothing more, no analysis, no thinking, typical of morons




    Thank you for that highly intelligent post, with lots of facts rather than just opinion, and great analysis!

  • Reply 18 of 38
    To be honest I think it's irrelevant, Samsung Mobile are doomed either way.
    They'll end up treading water (making and shipping devices but with little or no profits) with the rest of the non-Apple crowd.
  • Reply 19 of 38
    Not surprised! Sammy simply junks the market with s***!
    Hey yall remember Nokia and all their crap. Let's go back to 2004 and remanense over 200 different phones. 3 years later iPhone would single handedly slay everything in their arsenal. One freakin phone! Damn!
  • Reply 20 of 38
    disturbia wrote: »
    I believe Samsung's talented and brave Mobile Management Team accepted to bend over and take it all dry just to keep their jobs! :smokey:  

    And no pillow to bite.
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