Business
Samsung reportedly calls for management review of its mobile business due to recent failures
A new South Korean media report says that Samsung has been conducting a management review of its mobile business this month, which is expected to end later this month. The report also reveals that the company could commence an audit of its mobile business.
Well, it’s not super surprising news as the Korean tech giant commences periodic reviews and special reviews of its many business units. However, the company’s periodic reviews are done every four to five years to examine or estimate the situation of business units implement measures to increase their efficiency.
According to TheElec, Samsung is conducting the review because of the poor earnings from mobile devices and supply chain management problems it is facing. The report also shows that Samsung is highly likely to miss its sales target for Galaxy S21.
It’s worth mentioning that the Galaxy S21 series is expected to have sold only 13.5 million units during the first half of the year. However, the Galaxy S series of old sold over 30 million units, while the Galaxy S20 series sold around mid-20 million units.
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TheElec sources also revealed that Samsung’s poor performance in 5G smartphones is also a reason for the review even as it was one of the first companies to launch 5G smartphones in 2019 but has fallen behind in market share to rivals in recent years.
Apart from this, well-known tipster FrontTron revealed that Samsung’s management review was being held since May. It means the company is well aware of its continuous reducing global smartphone sales and preparing to get rid off of supply imbalance.
The review could be done in light of Samsung Electronics vice-chairman Lee Jae-yong’s potential parole release later this month. The leader could be reviewing all core business units before his release to prepare to act accordingly when he is released, the sources said.
A Samsung spokesperson declined to comment on the matter. However, they added that the individual business units could review their own business practices without the top management conducting a review.
Samsung ranked first in market share in the global smartphone market in Q3, 2023. TrendForce report says that Samsung led the global Q3 smartphone market, recording a market share of 19.5%.
Overall production in the third quarter increased by 11.5% compared to the previous quarter to 60.1 million units. During the same period, Apple’s production increased by 17.9% to 49.5 million, thanks to iPhone 15.
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Third place was taken by Xiaomi (13.9%), followed by Oppo (12.6%) and Transion (8.6%). 6th place is Vivo (8%). Meanwhile, global smartphone production reached 308 million units, a 13% increase compared to the previous quarter and a 6.4% increase from the previous year.
Huawei’s re-entry into the flagship smartphone market targeting Apple has had a significant impact in China. Huawei is aiming to expand its high-end flagship series, focusing on the Chinese domestic market next year, so Apple “We plan to attack directly”.
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In Q3 2023, Samsung and Apple’s market share slightly declined, while an underdog Chinese phone brand appeared on the top 5 chart. In a recent development, Canalys published market research data for the third quarter, revealing Tanssion as the fifth best-seller globally.
According to the info, Samsung and Apple lead total sales with 20% and 17% market share, yet both have fallen from their 22% and 18% levels in 2022. However, Tanssion, the maker of Tecno, Itel, and Infinix phones, climbed from 6% global market share last year to 9% in 2023, a 50% jump.
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Apart from this, Xiaomi matched last year’s share only by “recovering” from a terrible first half of 2023. At the same time, OPPO has fallen steadily over the past two years, while fellow BBK brand vivo lost the top-5 slot it’s owned for years.
Overall, the global smartphone market underwent a slight drop of 1% in Q3 2023. Bolstered by regional recoveries and new product upgrade demand, the smartphone market recorded a double-digit sequential growth in Q3, ahead of the sales seasons.
Recently, research agency Counterpoint Research published their latest analysis. The report reveals that Samsung continued its leadership in the third quarter of 2023, while Apple remained in the second spot. However, both OEMs faced a decline of 1 percent year over year.
According to CR, slower consumer demand is the main factor in the dwindling sales. The market did see a slight 2 percent growth in Q3 compared to Q2, likely driven by last month’s iPhone 15 series launch. Samsung secured 20 percent market share, while Apple grabbed 16 percent sales.
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The Galaxy A-series was the key driver for the South Korean smartphone maker. Apple came in second with 16 percent of the market while Xiaomi rounded out the top three with its 12 percent share. Oppo (10 percent) and vivo (8 percent) were the remaining brands in the top five charts.
The newly released iPhone 15 series will help Apple score a lead over Samsung in the fourth quarter of the year. The results will arrive by early next year, and it’s expected that the US phone maker could surpass Samsung. Major camera upgrades and USB-C helped Apple register strong sales.