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Samsung’s Smartphone Production May Be Disrupted If Japan’s Export Restrictions Are Prolonged
Galaxy Note 10 Unpacked
Samsung’s Smartphone Production May Be Disrupted If Japan’s Export Restrictions Are Prolonged
  • By Kim Eun-jin
  • August 9, 2019, 09:56
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Koh Dong-jin (left), head of Samsung Electronics' IM Division and Satya Nadella, CEO of Microsoft shake hands at Samsung's Galaxy Note 10 Unpacked event in Brooklyn, New York on Aug. 7 (local time).

Koh Dong-jin, head of Samsung Electronics’ IM Division, has expressed concern that Japan’s export restrictions, if prolonged, would cause a disruption in the company’s smartphone production.

"We have no problem in launching new products such as the Galaxy Note 10 and the Galaxy Fold as we have secured parts for up to four months, but we will face a very tough situation if Japan’s export restrictions continue," Koh said in a news conference after the Galaxy Note 10 Unpacked event in Brooklyn, New York on Aug. 7 (local time).

After checking parts supply situations of first-tier to fourth-tier suppliers, Samsung Electronics judged that there would be no serious problem in producing new products. The problem is that parts used for smartphones, such as printed circuit boards (PCBs), are so diverse and large in number that it is difficult to predict the effects of Japan’s export restrictions when they become prolonged. "I am concerned that we cannot accurately predict the impact of the restrictions," Koh added.

Koh said he wants to be paised for doing well rather than doing fast. This means that Samsung will focus on meaningful innovation that will be recognized by consumers. Koh said that Samsung would not compete with Huawei of China over who will launch a foldable phone first.

At the end of the unpack event, Satya Nadella, CEO of Microsoft, made an unexpected appearance, surprising audiences. Microsoft has signed a strategic partnership with Samsung Electronics. “It is 100 percent right to strategically collaborate with our business partners who do not compete with us in the same business areas and can help us improve our products,” Koh said. “MS has products and services with the greatest strength in boosting productivity and it is timely for us to collaborate with it for the Galaxy Note Series.”