Out of time: Former Samsung Mobile Chief J.K. Shin has been asked to step down due to lower than expected profits in the mobile spaceSamsung has replaced long time chief of mobile J.K. Shin due to increasingly lower sales and poor product performance in the smartphone space, an area that Samsung dominated for a number of years. Replacing Shin is D.J. Koh, former head of mobile research and development. J.K. Shin will be kept on but will take a step back and focus on long-term strategy.
Samsung's profits fell slightly from the previous quarter, after the company slashed the price of the Galaxy S6 and S6 Edge to help boost sales.
"While it's true that Shin delivered remarkable performance in the past, it's indisputable that the Galaxy S6's results fell short of expectations so a new leader was needed," Hansung University economics Professor Kim Sang-jo said in an interview with Reuters. It is doubtful is a change in leadership will have any short term effects as Samsung's product pipeline for the next year is already in place.
Samsung's once dominant devices have been hit by all sides. In the premium market by rival Apple, who entered the large smartphone space last year with the iPhone 6 Plus and in the mid to entry level by new entrants like Huawei, Xiaomi, ZTE and others whose cheaper midrange smartphones offer higher end specs and larger displays. Samsung was also an early mover in the smartwatch and wearables game but since replacing the more popular and compatible Android Wear with its own Tizen OS, the appeal of its Galaxy Gear devices was limited to Samsung smartphone owners.