Pressure of Samsung Galaxy S6 Mounts as Galaxy S5 Misses
Samsung continues to be rattled by depressing sales and increasing competition. Samsung's recent earnings report for Galaxy S5 fell short of expectations with the management considering a major reshuffle in the ranks. Can restructuring save the company's game amidst mounting competition?
The Korean tech giant is looking into shaking up its management in hopes of bringing changes to the performance of the company. The Wall Street Journal cited people familiar with the matter hinting at the reshuffle about to happen soon. Samsung has been struggling on its market share, stock price and profitability all together for the past few months.
For instance, co-chief executive and mobile head J.K. Shin may be taken out of the mobile division. Shin is the same person who helped Samsung makes the rapid ascension in the smartphone industry. However, the company's recent performance may not spare the executive from being taken out. The Wall Street Journal further noted that one of the people familiar to the matter even claimed that the Samsung official could lose his CEO post.
Another official in line to be reshuffled, co-CEO B.K. Yoon, may take over the mobile division aside from overseeing Samsung's home-appliance and television business. The restructuring initiative reportedly came following Samsung Galaxy S5 sales posting 12 million units compared to the Samsung Galaxy S4 at 16 million units. According to CNET, the company also revealed a 74 percent year-over-year drop in profit.
Despite the declining profit and poor sales, Samsung remains hopeful about its upcoming projects in 2015. In a recent Investors Forum in New York, the company revealed that it will be working on releasing bendable phones in the coming year.
Analysts expect Samsung can pull this off as the company has been working on display technologies that can allow the transition. Likewise, Samsung also noted that it is not too thrilled about China's Xiaomi but it remains skeptical whether the company can succeed in markets outside its native country.