Samsung names new smartphone chief as part of executive reshuffle - Financial Times

Samsung has named a new head of its smartphone operations as it tries to reinvigorate the business in the face of stiffer competition from lower cost rivals like Huawei. 

The South Korean group said on Monday it had appointed Roh Tae-moon as its smartphone chief, as well as promoting four young executives to company presidents.

Mr Roh previously led the development of Samsung’s Galaxy smartphone and a strategic shift to outsource more handset manufacturing to third parties in China and elsewhere.

The world’s largest maker of computer chips, display panels and smartphones is seeking to accelerate the development of new growth drivers. Samsung has reported falling earnings for the past five quarters, owing to a downturn in the memory chip market and global trade frictions. 

The management shake-up, delayed from last year, came as the group’s de facto leader Lee Jae-yong faces a final court ruling on bribery charges after years of legal wrangling. The verdict, expected in the coming weeks, could result in Mr Lee being thrown back in jail. Samsung said the reshuffle would help it to better cope with the uncertain global business environment.

Former smartphone chief DJ Koh will continue to oversee Samsung’s information technology and mobile division, which includes mobile devices and network equipment. The company promoted its network business chief Cheun Kyung-whoon to president as it tries to grab a bigger share of the global network equipment market, such as in 5G.

Competition in the market for 5G smartphones and equipment is forecast to intensify this year as countries increasingly adopt 5G networks. Apple is expected to launch 5G-enabled smartphones in 2020. 

“Replacing its smartphone chief has been long overdue, given Samsung’s big mistakes with the Note 7 battery and foldable phone,” said Park Ju-geun, head of research firm CEOScore, referring to two recent debacles at the company. 

“Samsung has benefited from Huawei’s trouble in network equipment and Apple’s absence in 5G smartphones. So the reshuffle is aimed at making the most of the growth potential in the two areas.” 

Samsung posted losses of billions of dollars in 2016 when it withdrew its fire-prone Note 7 smartphone. Last year it had to delay the launch of a highly anticipated, foldable smartphone owing to embarrassing malfunctions. Samsung has still been able to increase its market share in smartphones and network equipment thanks to US sales curbs on Huawei for security concerns. 

Samsung’s shares rose 1.6 per cent in trading in Seoul on Monday versus a 1 per cent rise in South Korea’s benchmark Kospi index.

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Samsung names new smartphone chief as part of executive reshuffle - Financial Times
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