Samsung announces new presidents for smartphone and network equipment divisions as Huawei threatens its position as the mobile market leader

on Jan 20, 2020
Updated: Mar 11, 2020
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  • Samsung announces new presidents for smartphone and network equipment divisions.
  • Samsung is currently facing challenges in keeping its leading position in the mobile market against China's Huawei.
  • Samsung was the first one in the entire world to commercialize the 5G services in South Korea.
  • Samsung noted an incredible around 70% growth in its stock in 2019.

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The Korean top smartphone manufacturer, Samsung Electronics, announced its executive Roh Tae-moon as the new chief for its smartphone business on Monday. Samsung is currently facing broad challenges in keeping its leading position in the mobile phone market as China’s Huawei Technologies continue to sharply rise in demand across the globe.

Samsung’s New Smartphone President Is The Youngest In Samsung’s History

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At 51 years of age, the new chief for Samsung’s smartphone division is known to be the youngest president in Samsung’s history. Samsung also announced a promotion for its network equipment business head, Cheun Kyung-whoon, to the president of his respective division, which, according to the analysts, stemmed from the U.S campaigns that demanded a ban on Huawei from the countrywide networks. The new chief is likely to extend negotiations and convince authorities in the United States to rethink its decision of blacklisting Huawei.

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Samsung was the first one to penetrate the fifth-generation telecommunication networks. Kyung-whoon was also involved in commercializing the world’s first 5G services in South Korea. Being a pioneer helped the Korean manufacturer establish its lead in this niche. However, Huawei is likely to stir a sharp increase in the worldwide sales of 5G capable smartphones later in the year, thanks to its incomparably broad home market.

Counterpoint’s analyst, Tom Kang, commented on the news and stated:

“Samsung’s reshuffle seems aimed at coping with a potential major market change with the new technology. The young executive is known to be decisive and so is likely to respond swiftly to that change to defend Samsung’s lead from Huawei.”

Counterpoint Says Huawei Noted An 18% Market Share In The Third Quarter

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Counterpoint’s latest data also highlighted that the third quarter saw a 21% market share under Samsung while Huawei was noted approaching quickly with a marginally lower 18%. The data came out positive for Huawei despite the complications raised earlier in the year that saw it getting barred from doing business with the United States. As of May, Huawei had also lost its access to the world-popular android operating system by Alphabet Inc.

As compared to the Benchmark index, Samsung noted a 2.5% gain in the stock market on Monday. Amidst the challenges and other legal complications concerning its vice president Jay Y. Lee, Samsung has performed exceptionally well in the stock market in 2019. The Korean leading smartphone manufacturer is currently exchanging hands at 62,400 KRW that marks an around 70% increase as compared to the opening price in January 2019. Samsung has already noted an around 15% gain in the stock market in 2020 so far.

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