Mobile business makes Samsung on pins and needles forced to adjust management

For the past five years, Shen Zongjun, chief executive of Samsung Electronics and mobile business director, J. Under the leadership of K. Shin, Samsung has become the world's most successful smartphone maker. But today, weak smartphone sales could lead to a third consecutive quarter of Samsung's operating profit. Shenzong have been on pins and needles. Since 2009, the serious Shenzong have been in charge of the rapid development of Samsung Electronics mobile sector. In the first quarter of this year, the sector's net profit accounted for nearly three-fourths of Samsung Electronics's net profit of about 8.3 billion dollars. At the beginning of Shenzong's takeover of Samsung's mobile business, the business accounted for only One-third of the company's total net profit. Shenzong, a 58-year-old executive with a technical background, has been able to stand out in the complex Samsung Electronics, thanks to a series of key decisions, such as the use of touch screens, the use of Google's Android operating system in Samsung's best-selling Galaxy S-series smartphones, As well as the introduction of large-screen smartphones. Shenzong's tactics have made Samsung Electronics a global leader in the smartphone industry. The rise of Samsung's electronic smartphone business has also angered rival Apple. Over the past three years, Apple has been embroiled in a struggling of patent infringement disputes with Samsung Electronics. The biggest challenge for Shenzong today is how to maintain the Hard-won market dominance of China's low-cost rivals as they squeeze smartphone profits and Apple's upcoming launch of a new product. Samsung Electronics shares in the global smartphone market have slipped to 25% in the second quarter of this year, down from 32% a year earlier, according to data released this week by IDC, a market research firm. News sources said the Samsung Electronics smartphone business has been in trouble recently, forcing hundreds of of corporate mobile executives to cut bonuses by 25% in the first half. Samsung Electronics released a detailed report earlier this month, warning that profits could fall, uncharacteristically said. Samsung Electronics acknowledges that there are problems with the company's inventory management, Chinese business and tablet sales, and blamed the growing competition from low-end smartphone makers. Samsung Electronics said at the time that its operating profit for the second quarter was expected to fall 24% per cent year-on-year, to about 7.2 trillion won (about 7 billion US dollars). In recent weeks, market analysts have been getting tougher on Samsung Electronics. Daniel Kim, an analyst at Macquarie Securities, said in an investor report in early July that Samsung Electronics must plan a new mobile strategy from scratch, a move that could be accompanied by a major shift in the Daniel Kim of the mobile sector. In the past, Samsung Electronics has relied on this tactic many times. In May this year, Zhang Dongxun Chang Dong-hoon, head of Samsung's mobile design team, resigned, and his position was replaced by Vice President of Mobile Design Lee Mingh (Lee Min-hyouk). Zhang Dongxun has led the design team to design Samsung Electronics best-selling GalaxY smartphone product line. Market critics point out that the Shenzong are taking the form of Samsung Electronics as a market leader, and may be biting into Samsung electronic bites. They point out that Shenzong are likely to be overly optimistic about phone sales expectations, which also lead to a backlog of products produced. Samsung Electronics said earlier this week that high inventories forced the company to increase marketing spending to sell equipment. In the short term, market analysts said Samsung would have to slash costs and make products priced closer to the prices of Chinese rivals ' products. Samsung Electronics must adjust sales forecasts to better control inventory; In addition, the company must be effective in marketing activities. In the long run, Samsung Electronics must devise a strategy for differentiated products--both on hardware and software--to differentiate between its products and competitors ' products. So far, Shen Zongjun has not commented on the report. Samsung Electronics spokeswoman said there was no factual basis for suspicions that management would adjust. Unlike many of its colleagues in South Korea, Shenzong is not at the top of the university. Shenzong graduated from Guang Yun University in South Korea's Seoul suburbs and received a degree in electronic engineering. After graduation, Shenzong joined Samsung Electronics in 1984, and has served in several important positions such as mobile search and development. Shenzong is an enterprising perfectionist. Sources said that Shenzong in the early 2010 in the mobile sector executives meeting, criticized the company's smartphone design is not as good as the graduation design of college students. After taking over Samsung's electronic mobile business in 2009, Shenzong's first major move was to launch devices with Google's Android operating system. Over the next year, Samsung Electronics released its Galaxy S smartphone, which was hugely successful. September 2011, Samsung Electronics released the first big screen smartphone Galaxy Note. Industry observers point out that the Cross-border product defines the new device category, helping Samsung Electronics overtake Apple as the global smartphone industry. The source said Apple will release the company's first big-screen smartphone in the next few months. By the end of 2012, Samsung Electronics had replaced Nokia and Apple as the world's largest smartphone maker. In the first quarter of that year, Samsung's Electronics mobile division's operating profit was nearly twice times higher than the same year earlier. Shenzong positions are also rising. He supervised Samsung's electronic network and camera business in 2011. He was promoted to the co-CEO of the company in 2013. Samsung Electronics's latest documents to the South Korean Securities and Exchange Commission show that the Shenzong only amounted to about $9.4 million in the first quarter, making the other two co-CEOs in charge of accessories and consumer electronics business dwarfed. Shenzong, in an interview with the Wall Street Journal in May this year, acknowledged that the company's newest flagship smartphone Galaxy S5 lacked eye-catching technology. But he says the company remains focused on innovation to drive future growth. Although Samsung Electronics has been pushing the softwareDevelopment work, but due to lack of experience, led to the development of the operating system Tizen constantly delayed listing. In Monday, Samsung Electronics said it would postpone the sale of the first Tizen smartphone Samsung Z in the Russian market. (Mingxuan)