Samsung ends the existence of its mobile phone division as a separate entity
As most of its profits now come from the semiconductor division, Samsung has decided to streamline its corporate structure, merge the mobile with the consumer electronics division, and, respectively, reduce the number of co-CEOs from three to two.
Instead of 70% in the 2010s, the phone and tablet department now bring only 21% of Samsung's profits, despite that it is still the largest phone maker in the world by volume, if we don't count the holding that owns OnePlus, Oppo, and Vivo as a single phone-making entity. The chips and storage division, on the other hand, made $13.4 billion for Samsung last quarter, buoyed by the pandemic-induced demand for the goods.
The new chief of the SET division that now includes phones, TVs, and other consumer electronics or household appliances will be Han Jong-hee, formerly heading the company's TV display business, while the highly profitable components division will now be managed by Kyung Kye-hyun, the Samsung Electro-Mechanics exec.
- JH Han is a leading expert in TV research and development and has played a major role in the Company achieving the top position in global TV sales for the 15th consecutive year. He is expected to strengthen the synergies among the different businesses in the SET Division and help drive new businesses and technologies.
- Kyehyun Kyung, who has been the CEO of Samsung Electro-Mechanics, is an expert in semiconductor design, having previously been the head of Samsung Electronics’ Flash Product & Technology Team as well as part of the DRAM Design Team. He is expected to help maintain the Company’s semiconductor leadership and lead innovation in the components business.
These are just part of the changes Samsung is embarking on after Vice Chairman Jay Y. Lee was paroled back in the summer, and their goal is to simplify and accelerate decision making within the company, but there are other movers and shakers along the corporate structure:
- Yongin Park, named President and Head of System LSI Business; previously Executive Vice President and Head of System LSI Sales & Marketing
- Hark Kyu Park, named President and Chief Financial Officer; previously President and Head of the Corporate Management Office, DS Division
- Kinam Kim, named Chairman of Samsung Advanced Institute of Technology; previously Vice Chairman and head of the DS Division
- KS Choi, named President and Head of North America Office for SET Division; previously Executive Vice President and Head of North America Office
- Inyup Kang, named President and Head of North America Office for DS Division; previously President and Head of System LSI Business
According to Kyungmook Lee, professor of business management at Seoul National University: