Expecting Improvement

Samsung Electronics Vice Chairman Kwon Oh-hyun delivers the welcoming address at the shareholders meeting in the company’s headquarters in Seoul on March 13.
Samsung Electronics Vice Chairman Kwon Oh-hyun delivers the welcoming address at the shareholders meeting in the company’s headquarters in Seoul on March 13.

 

The first shareholder meeting of Samsung since Chairman Lee Kun-hee fell ill last May and his only son became de facto commander-in-chief was held on March 13. Though Vice Chairman Jay Y. Lee’s name is not on the list of the board of directors, the meeting format was modified a little at his direction in order to build a tighter relationship with shareholders.

At the meeting, Samsung Electronics Vice Chairman Kwon Oh-hyun said that the company plans to find new revenue sources by developing premium products and strengthening its technology leadership. Kwon, who was reappointed as an internal director for another three years, said that the company will try to tap new demand in the business-to-business market and to develop new businesses related to the Internet of Things (IoT), such as smart home and health devices.

"Samsung will differentiate its products under an unpredictable global economy and intensified competition. This is the only way to continue solid performance and to boost profits transforming crisis into opportunity,” Kwon said.

Mobile chief Shin Jong-kyun outlined the company's smartphone business strategy after losing its outright lead to Apple. "Samsung Electronics plans to use more premium materials in mobile devices such as metal casings to appeal to more customers, and to offer a wider range of connected devices."

Ever since 2014, the first time that Samsung declined in sales in nine years, its mobile division has been a major point of concern. Profits from the mobile division dropped 64 percent year-on-year in the latest quarter. On the high end of the market it is being squashed by Apple’s iPhones, and from below it is being challenged by upstart Chinese brands.

To revive sales, Samsung launched its latest flagship smartphone, the Galaxy S6. Receiving some positive reviews and more than 20 million pre-orders, statistics witness a steady growth in Samsung's business and a possible sign that it can attain its lead in the market. As of Friday’s closing, Samsung shares were up 0.69 percent to 1.45 million won (US$1,282), which is an 8 percent increase since the first reveal of the Galaxy S6 on March 1.

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