Samsung is undergoing management review of its various business units. These reviews were scheduled to end in July but have been extended due to Elec’s reporting that Samsung’s mobile division will be under review during August.
Samsung is in the process of performing reviews on its business units, which typically occur every four to five years. Reviews are launched with no warning and when they see cause for concern within a particular unit.
The Samsung Mobile Review is a special review initiated due to underwhelming mobile sales and supply chain issues. The former, declining S series Galaxy 21 sales are attributed to the recent discounts that have been running on it since its launch earlier this year which has resulted in only 13.5 million units sold during H1 of 2018 (despite launching early). It performed far lower than previous Galaxy S smartphones when looking at overall unit numbers with such high sale rates before.
Samsung is struggling with a chip shortage that MediaTek says it can’t handle. In addition to the company’s fall from first place in global smartphone market share, Samsung needs chips for its next phone release and was told by MediaTek not only that they would be unable to meet all orders but also why their position slipped: due largely to competition from Xiaomi which has taken over as number one worldwide.
MediaTek shared information about an upcoming shortage of their components when speaking with Samsung representatives last week. The Taiwanese company revealed more details this weekend during a press conference where it announced shortages had been exacerbated by competitors like Xiaomi moving into the top spot globally on account of having won 50% more new shares than any other brand so far in 2018
Samsung is launching a slew of new products next week including two foldables to compete with the upcoming iPhone 11. The company has been struggling in recent years, but this may be their way back up as they take over global market share for 5G smartphones.
