JK Shin, Co-CEO of Samsung Electronics and Mobile division Chief, is stepping down from hands-on manager of the Smartphone business, Reuters reported. Even though, that Shin will remain as the technical boss in charge of the general Mobile division, his part as president will be taking control by Dongjin Koh, who will handle everyday operations. Shin will concentrate on new business sections in the company and long term strategies.
Koh was the leader of Samsung’s Mobile R&D up to this point, reportedly “playing a key role” in the developments of the most recent Samsung Smartphones like the Galaxy Note 5 and Galaxy S6. Both Smartphones were critically not welcomed, representing to a change toward premium designs for Samsung, however, the flagship S6 just managed to make an “entirely marginal sales” effect on Samsung’s earning earlier this year and as a result of these shifts Samsung underwent price cuts.
As you can see from the diagram below, Samsung’s Mobile earnings have been in decline for a considerable length of time, despite the fact that the company did record a slight profit growth last quarter. Koh’s assignment is easy to explain to anybody, but difficult to pull-off. Samsung Mobile must defend itself from other competitors as consumers have choices to make from all sides.
Apple has been increasingly dominant in the top of the line Smartphone market, especially since the release of bigger screened iPhones, while less options were available from the likes of Xiaomi that was getting more competitive. What Samsung needs is a “genuine product” separation in order to beat Apple; that’s why the company may have chosen Koh to be the best option for logical problem Samsung is having now.
“This is basically a retirement for Shin,” Samsung said.