Samsung Electronics’ new mobile business chief Koh Dong-jin vowed to maintain the company’s leadership in the world’s smartphone market despite market concerns about competition from rivals.

Entering Samsung’s head office in Seocho-dong, Seoul, on Wednesday, the new president of the mobile communications business -- a smaller unit under the firm’s IT and mobile communications division -- told reporters that Samsung’s smartphone unit is “not at the end of its rope.”

He also pledged that he would make the utmost efforts so that the electronics giant can retain its title as the world’s largest smartphone-maker.
 

Under the latest reshuffle of the top brass in the electronics firm, Shin Jong-kyun, who headed the mobile business unit since 2010, will continue to remain as CEO of the IT and mobile communications, or IM, division. But he will not directly be involved in day-to-day handset business operations, leaving them to new president Koh.

Analysts have forecast that Samsung could face difficulties in its handset business as the company is facing a tight squeeze between high-end smartphone-maker Apple and Chinese upstarts, including Xiaomi and Huawei, at the low-end.

Samsung’s mobile business unit saw its operating profit drop from 24 trillion won ($20.7 billion) in 2013 to 14 trillion won in 2014.

The operating profit of the IM division during the July-September period this year stood at 2.4 trillion won, down from 2.8 trillion won in the second quarter due mainly to the sluggish sales of mobile devices. The annual operating profit this year is anticipated to reach around 10 trillion won.

Some analysts predicted that the new Samsung mobile chief will try to come up with drastic measures to reinvigorate the ailing smartphone business, possibly by altering strategies for the tech giant’s flagship Galaxy lineup.

“Management directions usually change along with a leadership change,” said Lee Seung-woo, an IBK Securities analyst, forecasting the new leader will bring striking changes to the Samsung handsets.

One of those anticipated changes is said to be the firm’s business plans for software.

Well versed in IT solution development, the new president led projects to develop IT solutions including the mobile payment system Samsung Pay and mobile security solution Knox.

‘His participation in those projects for the IT solutions signals that the tech giant will likely put more focus on software than before,” a market analyst said.

He is also credited with having made major contributions to the development and release of the Galaxy S6, and the Galaxy Note 5. The two devices have received a positive market response after their preceding models failed to live up to expectations.

Mobile chief Koh, however, told reporters that there was “little chance of a drastic change in the business structure,” for now.

By Kim Young-won (wone0102@heraldcorp.com)