Samsung hasn’t been doing as well as many of us would’ve expected this year. The company has shown record losses in its last couple of quarters, and today we learn how devices like the Galaxy S5 have led to this. Internal sources claim that Samsung manufactured 20% more devices than the Galaxy S4, and only met its projected sales in the US. Samsung globally sold 40% less GS5s than its predecessor, the GS4. The company barely reached 12 million units sold in the first three months, at a time where it projected 16 million units to sell. In China, Samsung’s second largest market by revenue, the company barely reached 50% of its sale projections to make matters worse. As a result, Samsung had to invest a lot of extra money to position the exceeding stock, though that’s not the only plan that’s rumored to happen in Korea.
Internal sources claim that Samsung is considering a significant corporate shakeup in order to address the issues that currently have the company’s stock at an all-time low. These changes go as far as to have J.K. Shin step down from his roll as President and co-CEO of mobile devices, and have B.J. Yoon add these rolls to his existing position as President and co-CEO of televisions and home appliances. You’d assume that adding rolls to Yoon would only cripple Samsung’s existing ability to perform, but the source claims that Samsung wants to bet hard on the connected home, and this would require both divisions to work together closely.
J.K. Shin has been responsible for Samsung’s incredible rise in mobile, so these news are not necessarily good for Samsung lovers. Changes to the highest levels of any division could even leave us with a completely different Samsung in years to come. It’s hard to predict if these changes will be good, but we’ll learn more about it in months to come. Do you think a corporate change is what Samsung needs to succeed? Leave us a comment down bellow.