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Is Samsung naming new mobile business boss?

Posted: 25 Nov 2014 ?? ?Print Version ?Bookmark and Share

Keywords:Boo-keun Yoon? mobile business? consumer electronics?

Samsung Electronics contemplates a leadership reshuffle as part of its efforts to cure its ailing mobile business, according to The Wall Street Journal.

Samsung is reportedly eyeing Boo-keun Yoon, a co-CEO who leads the tech giant's consumer electronic business, to take over the mobile division and replace its current head, Jong-Kyun Shin.

While the South Korean company has not issued an official decision, the internal restructuring reflects Samsung's attempts to improve its financial standing after a rough year that saw its third-quarter smartphone profit drop by a disappointing 60 per cent.

Boo-keun Yoon

Samsung consumer electronics business head Boo-keun Yoon.

Samsung's smartphone performance declined in terms of market share and volume of shipments. Its market share dipped to 23.8 per cent in the third quarter of 2014 from 32.5 per cent over the previous year.

Despite maintaining its lead in the worldwide smartphone market, Samsung was the only company among the top fiveincluding Apple, Xiaomi, Lenovo and LGto see its shipment volume decline year over year, according to IDC. Its performance suffered from fierce competition around nearly every price pointfrom Apple in higher-tier smartphone models, and from China-based brands at the lower end.

Many believes that a management restructuring could position the company to respond more quickly to competition, especially when pit against low-cost Chinese players like Xiaomi, Lenovo and Huawei. These three companies have performed well, and are now among the top six smartphone players listed by Strategy Analytics.

[See also: China-based brands emerge as strong smartphone players]

Samsung, as well as other international brands, are "losing shares to the Chinese brands in price competition due to the low-cost of the latter which are selling their smartphones, including phablets, within the $50 to $200 range," said Linda Sui, director at consulting firm Strategy Analytics.

Aside from sharpening its edge in the mobile market, the shakeup is also linked to the South Korean giant's desire to take on the Internet of Things.

In the event that Samsung did name Yoon as the new boss of its mobile division, the 61-year old co-CEO could lead the integration of IoT across the company's household appliances and consumer electronics. Yoon has had a hand in the company's push to the connected home, including the buyout of all-in-one smart home solution SmartThings. (Read full story here: Samsung intensifies move to connect the home)

Samsung has not released any comment on the subject as of press time.

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