On Monday, Samsung Electronics Co Ltd appointed its youngest president as its new chief for smartphone, as the firm wants to guard and maintain its supremacy in the handset market against rising challenges from competitors such as Huawei Technologies Co Ltd.
Holding a strong position in Market shares
The South Korean firm also promoted the head of its network equipment business, which according to analysts received a lift from a U.S. campaign to sway allies to ban Huawei from their networks.
Samsung was able to achieve an early head-start in smartphones that are integrated with quicker fifth-generation (5G) telecommunication networks. However, Huawei is majorly expected to bolster the sales of 5G-enabled smartphones and equipment this year, supporting its humongous home market.
“Samsung’s reshuffle seems aimed at coping with a potential major market change with the new technology,” stated Tom Kang, an analyst at Counterpoint. “The young executive is known to be decisive and so is likely to respond swiftly to that change to defend Samsung’s lead from Huawei.”
Samsung has been one of the leaders of the smartphone industry; recently it held a 21% market share in the third quarter, whereas Huawei shut its third quarter with 18%, according to the latest data from Counterpoint. The data is pretty much obvious as Huawei in May was banned from executing business with most U.S. firms, snatching its access to technology such as Alphabet Inc’s Android.
Roh Tae-moon was appointed by Samsung, right now Tae-moon is the youngest-ever president at 51. He has been appointed as mobile chief as part of a reshuffle that was expected to happen earlier considering a series of court cases involving some of its top executives including leader Jay. Y Lee.
Capitalizing on Huawei’s problems
Roh challenged Samsung’s shift to outsourcing more handset production to reduce costs and compete better with low-budget Chinese smartphone makers such as Huawei, Reuters reported.
Being a former mobile development head, Roh has led the evolution of Samsung’s Galaxy mobile devices. Now he is tasked with rejuvenating the organization amidst heated smartphone competition, the South Korean company declared in a statement.
Network business chief for Samsung, Cheun Kyung-whoon, who has worked for commercialization of the world’s first of 5G services in South Korea. He was promoted to the president to support convert networking into a crucial business for the firm, Samsung stated.
Samsung, a struggler in the telecom network equipment market, has been integrating resources into the business, hoping to capitalize on the current condition of Huawei.
Huawei has been struck down denying allegations by the United States that its equipment could be utilized for spying by the Chinese government and that’s why it should not be used in 5G networks.
Samsung, one of the world’s strongest smartphone and memory chip makers, also kept its three co-chief executives in the annual review. It was a move that highlighted stability before a ruling on a bribery case on its leader Lee.
Samsung stock was up 2.5% versus 0.9% for the benchmark index.
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