“Tech giant Samsung Electronics Co Ltd’s long-time handset division chief is ceding day-to-day management of the struggling smartphone business in the biggest leadership change yet under the Samsung conglomerate’s heir-apparent, Jay Y. Lee,” Se Young Lee reports for Reuters. “Samsung Group said 54-year-old Dongjin Koh will take over as president of the mobile communications business from 59-year-old J.K. Shin, who will remain head of the overall mobile division for Samsung Electronics and focus on long-term strategy and developing new growth businesses.”

“The move diminishes Shin’s influence on the mobile business as the former cash-cow battles to reverse a slide in its market share to rivals like Apple Inc, Huawei Technologies Co Ltd and Xiaomi Inc.,” Lee reports. “Analysts said that while the moves at the mobile division were an apparent acknowledgment that change was needed, they did not expect a new strategy to emerge any time soon. ‘Koh is basically the same person as Shin,’ Korea Advanced Institute of Science and Technology business professor Chang Sea-jin said.”

MacDailyNews Take: Translation: The iPhone knockoffs will continue until morale improves.

“Analysts have said Samsung needed to step up its software and services offerings to revive its mobile business, but Koh, who has held mobile business roles since 2006, had an engineering background like Shin. ‘There is no real change and Samsung appears to be continuing on the hardware-centric path,’ Chang said,” Lee reports. “Samsung has implemented new designs and cut prices for high-end products to boost sales, but researchers say its global market share continued to fall from a year earlier during the third quarter. ‘This is basically a retirement for Shin,’ Chang said.”

Read more in the full article here.

MacDailyNews Take: Shackled to Android, Samsung has no point of differentiation. Apple will continue to take unit and the rest of the profit share from Samsung in the market segment in which they compete, and the bottom feeders will continue to take unit share as well. Tizen was Samsung’s only real hope, but they couldn’t manage to pull off such a large undertaking or, really, much of anything beyond mass producing inferior iPhone knockoffs. The world now sees: iPhone is the dream. If they have to settle for an Android phone until they can achieve iPhone, they can get the same thing Samsung offers at much lower prices from myriad Chinese Android handset assemblers (who are also knocking off Apple iPhones’ trade dress left and right).

Sooner or later, even Samsung will figure out there’s no profit to be had in Android handsets.

SEE ALSO:
Ben Bajarin: ‘Samsung will be out of the smartphone business within five years’ – November 2, 2015
Apple’s iPhone can soon reap 100 percent of world’s smartphone profits – November 17, 2015
Apple’s iPhone owns 94% of smartphone industry’s profits – November 16, 2015
Apple iPhone owns over 90% of smartphone profits, so why do others even bother fighting over Apple’s scraps? – October 8, 2015
Beleaguered Samsung’s future depends more on components than on copying Apple – October 7, 2015
Beleaguered Samsung finding it tough to compete Apple’s revolutionary iPhone – October 6, 2015
Apple’s iPhone juggernaut continues with record-breaking sales while Android peddlers fight over scraps – September 28, 2015
Apple’s iPhone owns 92% of smartphone industry’s profits – July 13, 2015
Poor man’s iPhone: Android on the decline – February 26, 2015
Study: iPhone users are smarter and richer than those who settle for Android phones – January 22, 2015
Why Android users can’t have the nicest things – January 5, 2015
iPhone users earn significantly more than those who settle for Android phones – October 8, 2014
Yet more proof that Android is for poor people – June 27, 2014
More proof that Android is for poor people – May 13, 2014
Android users poorer, shorter, unhealthier, less educated, far less charitable than Apple iPhone users – November 13, 2013
IDC data shows two thirds of Android’s 81% smartphone share are cheap junk phones – November 13, 2013
CIRP: Apple iPhone users are younger, richer, and better educated than those who settle for Samsung knockoff phones – August 19, 2013