A review of Samsung's mobile business has been extended
The Elec is reporting that Samsung Electronics has extended the management review of its mobile business this month. It was meant to end in late July, but a source says that the deadline has now been extended to the end of August.
Depending on the results of the review, Samsung may decide to conduct an audit of its smartphone division. For those of you not familiar with the term, an audit is an examination and evaluation of financial statements.
The current review is being performed by Samsung’s Business Support Task Force and has been ongoing since the second quarter. There are two types of reviews: Periodic Reviews and Special Reviews.
Periodic Reviews happen once every four to five years and are focused on increasing the efficiency of a business. Special Reviews, on the other hand, are done without warning when Samsung’s leadership believes there’s a problem.
The Elec reports that Samsung Mobile’s current review is a Special Review brought on by lackluster earnings in recent quarters and the ongoing supply chain problems, which ceded Samsung’s smartphone top spot to Xiaomi in Europe.
The Galaxy S21 isn't selling well and Samsung isn't happy with MediaTek
While not confirmed, the performance of Samsung’s Galaxy S21 series could be directly related to the unexpected review. Estimates suggest 13.5 million Galaxy S21 units have been sold in the first six months of sales.
Those numbers are down 20% compared to the Galaxy S20 line, which was deemed a massive failure. They’re also a whopping 47% lower than the numbers seen following the Galaxy S10 series launch in 2019.
Analysts believe Samsung’s ongoing supply chain issues are temporary and that things will improve in the coming quarters. However, Samsung management doesn’t seem to be accepting any excuses.
Sources say the company’s relationship with MediaTek is on the rocks. The supplier’s chipsets are found in recent Galaxy A models like the Galaxy A32, but MediaTek reportedly told Samsung recently that it couldn’t meet demand.
Recommended Stories
Loading Comments...
COMMENT
All comments need to comply with our
Community Guidelines
Phonearena comments rules
A discussion is a place, where people can voice their opinion, no matter if it
is positive, neutral or negative. However, when posting, one must stay true to the topic, and not just share some
random thoughts, which are not directly related to the matter.
Things that are NOT allowed:
Off-topic talk - you must stick to the subject of discussion
Offensive, hate speech - if you want to say something, say it politely
Spam/Advertisements - these posts are deleted
Multiple accounts - one person can have only one account
Impersonations and offensive nicknames - these accounts get banned
Moderation is done by humans. We try to be as objective as possible and moderate with zero bias. If you think a
post should be moderated - please, report it.
Have a question about the rules or why you have been moderated/limited/banned? Please,
contact us.
FCC OKs Cingular\'s purchase of AT&T Wireless
Things that are NOT allowed: