Only a couple of weeks after the resignation of CEO Oh-Hyun Kwon, due to an ‘unprecedented crisis’ at the company, Samsung now has more CEOs than it knows what to do with.
Samsung might have lost one CEO, but it is gaining three. Kim Ki-nam is now in charge of the components business, Kim Hyun-suk will be heading up the consumer electronics side of things, while Koh Dong-jin is running the mobile and IT unit. For the moment, it is not clear whether any one of the CEOs will have an elevated role, or perhaps they will try to emulate Huawei and put in place a CEO carousel.
“The next generation of leaders are well suited to accelerate the pace of innovation and address the demands of the connected world,” said Kwon. “They have proven track records with extensive experience and outstanding expertise in their fields.”
Another move at the top table will concern Sang-Hoon Lee, currently serving as President and CFO, who will now become the new Chairman of the business. Interestingly enough, this is the first time the CEO and Chairman roles have been separated. Considering the number of scandals which have hit the business in recent years, perhaps separating two important positions such as CEO and Chairman is a sensible move.
Such changes might have proved to be a distraction to some businesses, but this does not seem to be the case if you look at Samsung’s quarterly earnings. Scandals are increasingly proving not to have a lasting impact in the technology world, and this has only been reinforced by record profits at Samsung.
Over the last three months, Samsung recorded total revenues of roughly $55.4 billion, with profits sitting quite nicely at around $13 billion. This is the highest profit Samsung has ever recorded over a quarterly period.
The winner here was the semiconductor business, as has been the case quite often recently, but the mobile team also recorded a win. The global rollout of the Galaxy Note 8 posted some very positive numbers for the group, but profitability did take a slight dip due to increased sales of lower-end models taking a greater proportion. The semiconductor business accounted for roughly one third of the total revenues, and almost two thirds of the profit for the quarter.
Over the next quarter, Samsung anticipates another strong quarter for its memory business, partly owing to increased demand for servers and mobile devices (cynics can comment on possible underhand tactics if they wish), while the strong performance of the Galaxy Note 8 is expected to continue.
This momentum is expected to continue through to 2018, with high-density, high-performance NAND leading the way for the memory business. The team also expect positive growth in the DRAM market which it has attributed to the big data and AI euphoria.