Samsung merges mobile and consumer electronics businesses

• Samsung now has two co-CEOs for powerhouse components business and combined mobile and consumer-electronics unit

• Samsung said the new CEOs will help in leading the next phase of growth

Samsung Electronics Co. merged the company’s mobile and consumer electronics businesses into a single unit and replaced the heads of the units.

The company, after the rearrangement, has two co-CEOs with Kyung Kye-hyun leading the powerhouse components business and Han Jong-hee leading the combined mobile and consumer-electronics unit.

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The South Korean company said on Tuesday in a statement that the new CEOs will help in leading the next phase of growth and strengthen business. Samsung had kept the same three CEOs since their appointments in 2017.

Shift in source of profit

The source of company’s profits have shifted over the years as in the early 2000s, flat-screen TVs were the highlight, then smartphones took over in the 2010s and now semiconductors are mostly in demand.

In the recent quarter, Samsung reported quarterly revenue of 73.98 trillion won, or $62.7 billion, mainly due to extra pricing during global chip shortage.

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Most of the company’s operating profit came from its components division, while mobile and consumer electronics accounted only for a quarter of the profit.

Samsung opted for multiple-CEO structure in 2013 to avoid conflict of interest among its units.

The de facto leader of the company, Lee Jae-yong, who was behind bars for bribing South Korea’s ex-president, was released on parole in August.

Picture Credits: Reuters