Samsung to exert tighter control over management
In a note to employees, Kwon Oh-hyun, Vice President of Samsung Electronics and Co-CEO Yoon Boo-keun and Shin Jong-kyun have stated that their growth in smartphones and TVs is decelerating. They also stated a need of tighter control over management and a complete overhaul of their working style which would supposedly help them break through difficult situations like these.
It was expected that Samsung Electronics would post an operating profit exceeding 9 trillion won ($8.9 billion) for the second quarter. Following weaker sales of smartphones and TVs, a lot of brokerages are predicting the operating profits to be much lower than 8 trillion won ($7.91 billion). Cheaper priced offerings from brands like Xiaomi, Coolpad, Oppo and Micromax are hurting sales of Samsung smartphones and tablets. This crisis will also affect its affiliates and subsidiaries including Samsung SDI, Samsung Electro-mechanics and Samsung Display.