Samsung declines to shake up management amidst shrinking smartphone profits
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'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.
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.
Comments
So they're letting the captain go down with the ship then.
... 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.
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.
Looks like the Samsung's copy machine does not allow it to copy money, its just prints black pages, how that managements fault.
Great news for Apple.
You are all so deluded, just opinion nothing more, no analysis, no thinking, typical of morons
So they're letting the captain go down with the ship then.
No, they're letting the ship go down with the captain.
Eff yes! Go down in a blaze of “glory”! Don’t remove the parasites! Go Samsung!
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.
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.
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.
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?
I believe Samsung's talented and brave Mobile Management Team accepted to bend over and take it all dry just to keep their jobs!
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.
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
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!
They'll end up treading water (making and shipping devices but with little or no profits) with the rest of the non-Apple crowd.
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!
And no pillow to bite.