January 21, 2022

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Samsung is reorganizing, bringing mobile phones and consumer electronics under one roof

Samsung’s business represents several divisions that focus on popular consumer electronics, smartphones, semiconductor components, and smart TV screens to name a few..

Samsung decided to merge the two main sections. This applies to the mobile devices and consumer electronics departments. The manufacturer will develop refrigerators, televisions, robotic vacuum cleaners and other devices, so to speak, under one roof along with smartphones.

Report it Reuters news agency.

Samsung is a world leader in smartphones and memory chips. However, the share of smartphones in the company’s total profits is declining. Whereas in 2010 it represented 70 percent of total profits, today it represents only 21 percent of economic results.

The most profitable is to work with semiconductor components led chips. The growth in this segment was supported by the expansion of data storage, but also by the lack of these components in the market. Component sales generated three-quarters of Samsung’s operating profit last year (about 11.9 billion euros), Reuters mentions.

Samsung wants to overtake Taiwan’s TSMC by 2030, the world’s largest chip supplier. The South Korean manufacturer plans to invest approximately 133 billion euros in doing business in this field.

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It will invest more in the development of artificial intelligence, robotics and biopharmaceuticals in the next three years.

Exynos 9810 chip. Photo: Samsung

But Samsung is not pushing smartphones and tablets to the other side, on the contrary. Streamlining the corporate structure aims to support further growth, increase competitiveness, and accelerate the decision-making process within the company.

Aside from immediate supply chain issues and rising raw material prices, analysts see competitors for smartphone makers in Apple and California.

The integration of mobile devices and consumer electronics devices can help Samsung better connect services between its smartphones and home devices. “In the long-term, Samsung’s biggest challenge is creating its own platform.” He said by Reuters Analyst Lee Jae-yun from Yuanta Securities Korea.

Han Jung Hee, who previously headed the TV Screens division, will be the new CEO of the division that brings together smartphones, televisions and other consumer electronics, including home appliances.

Kyung Ki-Hyun, CEO of Samsung Electro-Mechanics, will take over the highly profitable components division. Samsung made major changes to departmental functionality in 2017.

The current price of the Samsung Galaxy Z Flip 3 5G

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