In context: It has been a bumpy journey for Samsung over the past a number of years. From the Galaxy Note 7 recall to the conviction of a prime exec on corruption to the Galaxy Fold not-ready-for-primetime screw up, the company is wanting to new blood to lead its cellular arm.
Samsung has simply moved Roh Tae-moon to the head of its smartphone division. At age 51, Roh has change into the youngest CEO within the company’s historical past. Roh can be filling the footwear of former cellular chief Koh Dong-Jin (aka DJ Koh) efficient instantly.
Roh has been with Samsung since 1997, main the engineering and designing of the Galaxy line of merchandise. The company is hoping some new blood will bolster its edge towards stiffer competitors from Chinese producers Huawei and Xiaomi.
Reuters notes, Roh promoted a transfer to outsource extra of Samsung’s smartphone manufacturing to decrease prices and place itself to higher compete with the lower-priced telephones popping out of China.
The transfer is extra of an inner reshuffle than an outright alternative of its head. DJ Koh is not going to be leaving, however as an alternative will now oversee the company’s IT and cellular communications division.
Under Koh’s watch, Samsung suffered two main calamities with the Galaxy Note 7 recall in 2016 and the stumbling launch of the Galaxy Fold final 12 months. The exploding Note 7 debacle resulted in extreme losses in Q3 2016, totaling almost $2 billion.
Problems with the Galaxy Fold simply earlier than launch led to a vital delay within the system’s launch in addition to a PR nightmare that had executives taking part in the blame sport and making misstatements concerning the Fold’s readiness and gross sales. However, Koh is just not solely to blame for the shakeup throughout the company.
In 2017, Samsungs vice-chairman Lee Jae-yong was concerned in a bribery scandal. Lee was convicted on corruption expenses and sentenced to a five-year jail time period. An attraction granted Lee a suspended sentence, however Korea’s highest court docket overturned that ruling.
Whether shifting Roh to the head of the smartphone division will quell inner turmoil stays to be seen. Still, Samsung hopes he can assist them develop within the China and India markets, that are dominated by Huawei and Xiaomi, respectively.
Image credit score: Sung Yoon Jo by way of Shutterstock