Samsung considering shifts in leadership

Samsung considering shifts in leadership

Samsung is under pressure to boost sales and is considering making executive position changes.

Samsung could be contemplating executive shifts in an effort to boost sales in the competitive world of smartphones.

According to a report by The Wall Street Journal, Samsung is considering several options and scenarios to avoid another difficult year.  One of those options is to remove CEO J.K. Shin from his mobile head and co-chief executive duties.

Anonymous sources in the Journal believe that B.K. Yoon, a current co-chief and CEO, could take over the mobile division along with running the TV and home-appliance businesses.  Samsung has had three co-CEOs since 2013, which is fairly uncommon in the industry.

Although there are speculations, no decisions have been confirmed regarding executive positions nor has Samsung made any comments. The plans are far from finalized.

The Verge reported that a spokesperson for Samsung stated that they do not comment on “rumors and speculation” when contacted.

Samsung has reported more volume for lower-end devices resulting in lower selling prices on average. The Journal claims that Samsung’s Galaxy S5 supposedly sold 4 million fewer than the Galaxy S4 in its first three months, which is approximately 40 percent less than its projected sales. Sales were said to be down more than 50 percent in China.   They are said to increase in the U.S., Samsung’s major market, but nowhere else.

Fortune reported that Samsung increased 17 percent of their sales in 2013 reaching a record $209 billion.  However, they continue to struggle in the smartphone market.

Their shipment volume slipped in the third quarter making Samsung the only company among the top five vendors to record a decline in shipment volume according to the International Data Corporation.    The report also states that the company’s stock has been weak since June.

In effort to improve their declining profit, Samsung plans to reduce the number of smartphone models it offers next year by up to 30 percent.

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