Samsung's mobile CEO to stay despite business challenges
- 01 December, 2014 17:49
The head of the mobile business at Samsung Electronics will continue in his job, as the South Korean company has decided to continue with a three CEO structure adopted last year.
Samsung was considering moving out J.K. Shin, the current co-CEO who heads its underperforming mobile division, in an annual reshuffle, according to a news report earlier this month.
Boo-keun Yoon, a co-CEO who looks after Samsung's consumer electronics business, was being considered to take additional charge of the mobile business, and was expected to usher in quicker responses to competition in the smartphone business and a focus on the Internet connected home market, according to the report.
The third co-CEO, Oh-Hyun Kwon, who is in charge of components like semiconductors and displays, will also stay in his job.
Samsung said Monday in an emailed statement that all three co-CEOs will maintain their current position.
The Samsung Group is in the process of a restructuring its business. It announced earlier this month its plans to sell its stakes in defense and chemicals companies to Hanwha Group in South Korea.
The decision by Samsung not to make any changes at the top suggests that Jay Y Lee, currently vice chairman and expected to take over as chairman from his ailing father, Kun-Hee Lee, decided not to change the structure his father had set up, analysts said. Chairman Lee was hospitalized in May after a heart attack.
Shin was expected to be replaced after underwhelming smartphone sales. The company's market share dropped to 23.8 percent in the third quarter from 32.5 percent a year ago, research firm IDC said.
The company's net profit dropped 49 percent in the third quarter. The company piled up inventory of unsold Galaxy S5 smartphones, whose demand the company had overestimated, according to the report.
Samsung said earlier this month it was trimming the number of its smartphone models by about 25 to 30 percent in 2015.