Samsung sends out a warning of the huge competition that will be faced in the tech business this year.
Samsung has made another sad announcement regarding the tough competition it will be facing this year for all of its products including smartphones and memory chips to semiconductors and much more. The South Korean tech giant CEO also announced of chairman position being available for non-CEOs.
The galaxy maker is ready and well aware of the competition around the globe. It has managed to face it in 2015 and is all set to stand against it again this year. It is facing the competition due to the economic uncertainty and the exchange rates worldwide. The CEO of the company, Kwon Oh-Hyun, informed the shareholders beforehand through a letter, even before the annual meeting.
This time, even non-CEOs can take up the position of chairman. This will be the first time the company takes an action of such kind as an attempt to improve governance. Eligible executive and other board directors can sign up for the position, according to a spokesman for the business, Kelly Yeo.
The tech company is facing numerous battles at once, the major one being protecting its own shares from its competitors including the Chinese companies and Apple. It is also fighting against the hurdles it faces from the low prices of its product, semiconductors and other electronics. The CEO is expecting to face issues of oversupplying and difficult prices of its products including smartphones, memory chips, TVs and many others, he believes this year to be a tough one.
The South Korean company’s quarter earnings report in January showed that it was short on profit by 40% and it is now prepared to face a decline in the demand for its mobile phones globally. Since the company is aware of what it is to face, it has decided to expand its portfolio in market where there is less competition and is constructing different products including mobile displays in order to gain the profit it needs.
The organization is facing tough times but that is not stopping it from going towards developing different and new products. Its major rival in the market, Apple, has also reported to face a decline in the sales of its iPhones. CEO of the company said that the business is going to face extreme conditions this year.
Samsung is not the only company that is showing concern for this year. Lucky for the tech company, its competitors are worried too about the future.
No comments:
Post a Comment