Be the first - Pre-order the Galaxy S25 Ultra today! Follow us on Google news!

SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission.

News For You
News For You
Notifications

How Samsung has reshuffled its business to better focus on China

Business
By 

Last updated: July 8th, 2019 at 11:44 UTC+02:00

It has been a year since Samsung's market share dipped below 1 percent in China. The company has apologized for its poor performance in the lucrative market and vowed to do more. Samsung mobile boss DJ Koh said that efforts would be made to transform the business into a “truly localized” Chinese company.

Samsung altered its entire corporate structure in China last month. More details on the changes that Samsung has made to the business there are mentioned in the report based on an internal document obtained by Caixin.

Samsung cuts the number of regional subsidiaries in China

The document reveals that Samsung has merged several of its regional subsidiaries and reduced the total number from 23 to 11. These subsidiaries will now be in charge of 28 regional teams. So it has merely cut the number of subsidiaries but increased the number of teams on the ground in China to better cover the market.

Samsung told the scribe that to improve the sales in each region, 11 people have been appointed to these subsidiaries that have proved their competence and performance in the past. Pan Ming, a spokesperson for Samsung China, said the move to 28 regional systems has been done to “strengthen operational efficiency in order to improve corporate competitiveness.”

This has thus been a de-facto consolidation of the business in China and there are concerns that it could lead to layoffs. Samsung has already cut production at its last smartphone plant in China and also laid off some workers.

The company has been working on these plans for over a year and it has seen some improvement in its fortunes. Samsung's market share in China crossed the 1 percent threshold in the quarter ending March 2019. The Galaxy S10 has been very well received in the country. Will the Galaxy Note 10 be able to take the baton forward? Only time will tell.

Source Business China
Galaxy AI summarized

Scroll for more related content
News For You

You might also like

Galaxy S25 Ultra gets 16GB RAM but only in these countries

Galaxy S25 Ultra gets 16GB RAM but only in these countries

Yesterday, Samsung launched the company’s new lineup of flagship smartphones at the Galaxy Unpacked event in San Jose, California. At the event, the brand revealed that all three phones in the lineup — Galaxy S25, Galaxy S25+, and Galaxy S25 Ultra — have 12GB RAM across all the storage variants. That was quite disappointing for […]

  • By Abid Iqbal Shaik
  • 1 day ago
US’ stronger anti-China stance could hurt Samsung

US’ stronger anti-China stance could hurt Samsung

A few years ago, the US government stopped the flow of advanced semiconductor chips to Chinese firms for geopolitical reasons. However, some advanced chips still made it to Huawei through illegal ways. To prevent that, the US plans to tighten its grip on the supply of advanced chips by asking Samsung and TSMC to follow […]

  • By Asif Iqbal Shaik
  • 1 week ago
Latest US chip ban on China creates a big headache for Samsung

Latest US chip ban on China creates a big headache for Samsung

The US government has used export control measures to restrict advanced chips made using American technology to China. A wave of other sanctions have also severely restricted the country's access to latest semiconductor technology. However, companies that make those products may not necessarily be thrilled as there's significant demand for advanced chips from Chinese companies. […]

  • By Adnan Farooqui
  • 2 months ago
China continues to butcher one of Samsung’s cash cows

China continues to butcher one of Samsung’s cash cows

Samsung's memory business has been a literal cash cow for the longest time but it's now facing headwinds. The company has fallen behind SK Hynix in the lucrative HBM3E market and it's still waiting on a potentially lucrative order from NVIDIA. Meanwhile, Samsung continues to face tough competition from Chinese memory makers in the DRAM […]

  • By Adnan Farooqui
  • 2 months ago
The biggest China threat to Samsung’s business is worsening

The biggest China threat to Samsung’s business is worsening

Memory sales make up a huge chunk of Samsung's revenues and profit. In Q3 2024, the company earned $8.59 billion from DRAM sales. This alone accounted for 39.8% of all sales from its semiconductor division. Any threat to this business segment is certainly a great cause of concern for the conglomerate. Memory makers in China […]

  • By Adnan Farooqui
  • 2 months ago
Samsung’s Chinese rival could pull out of foldable smartphone market

Samsung’s Chinese rival could pull out of foldable smartphone market

Samsung was the first brand to launch foldable smartphones globally. Its first foldable phones came out in 2020, and it ruled the market for a few years, but it is no longer considered the king of that segment. Chinese brands are launching better-equipped foldable phones, and their sales are increasing. However, at least one Chinese […]

  • By Asif Iqbal Shaik
  • 2 months ago