On Monday, Samsung Electronics Co Ltd elected its youngest president as their new smartphone chief. The company is trying to defend itself from the rising challenges and rivals like Huawei Technologies Co Ltd in the handset market. The South Korean firm has also promoted its network equipment business’s head which was lifted from a U.S. campaign in hopes to convince its allies to exclude Huawei from their respective networks.
Samsung is among the leading smartphones that has quickly endorsed on fifth generation telecommunication networks but Huawei is expected to bolster sales of its 5G-enabled smartphones and equipment by this year, influencing its huge home market.
Tom Kang, analyst at Counterpoint said that Samsung’s reshuffle portrays a coping behaviour due to the potential market change due to new technology. The young executive is likely decisive and will swiftly respond to the changes that defend Samsung’s lead from Huawei.
The latest data from Counterpoint showed that Samsung, long-time smartphone leader held 21% shares in market during the third quarter and Huawei closed at 18%. This occurred even after Huawei was prohibited in May from doing business with numerous U.S. firms, hindering its access to technology such as Alphabet Inc.’s Android.
Roh Tae-moon is one of the youngest president at 51 and is now appointed as mobile chief of the company due to reshuffle that occurred later than sooner owing to court cases that involved the company’s top executives. Roh has championed Samsung’s shift to expand more handset production which would result in reduced cost and better competition among other lower priced Chinese smartphones from makers such as Huawei.
Roh was formerly head of mobile development and led development of Samsung Galaxy’s mobile devices and now he is assigned to motivate the organisation to deal with the rising competition.
Samsung said that its network business chief, Cheun Kyung-whoon was promoted to president to assist in turning networking into major business for the company. Samsung had a sluggish pattern in the telecom network equipment market but is now pouring resources into business to capitalise due to its security fears.