“Samsung Electronics Co. is considering a major leadership shake-up, according to people familiar with the matter, part of an attempt to revive its fortunes after a difficult year that has hurt its profitability, market share and stock price,” Jonathan Cheng and Sam Schechner report for The Wall Street Journal.
“The internal restructuring, the details of which could still change amid an ongoing annual review, would be a sign of Samsung’s attempts to find its footing after a brutal year in which third-quarter profit fell 60% amid market-share declines in smartphones around the world,” Cheng and Schechner report. “The mobile division, under co-chief executive and mobile head J.K. Shin, didn’t seriously question bullish projections for orders of its flagship smartphone, the Galaxy S5, which went on sale globally in April, according to a person familiar with the matter.”
“Samsung produced about 20% more devices than it did of the Galaxy S5’s predecessor, basing the numbers on a survey of its carrier partners around the world, who were asked to predict demand but who weren’t on the hook for any unsold devices, according to the person. That led to merchandise piling up in warehouses, forcing Samsung to increase marketing expenditures to unload the devices,” Cheng and Schechner report. “In all, Samsung sold about 40% fewer Galaxy S5 smartphones than expected.”
Read more in the full article here.
MacDailyNews Take: Aww, that’s too bad. 🙂
An iPhone with a larger screen option will hurt Samsung immeasurably more than myriad, unending traipses through the legal morass. – MacDailyNews, May 2, 2014
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]