Commentary

Samsung's Identity Crisis

Can another leadership change transform Samsung’s handset division into a moneymaker? The answer couldn’t be less clear.

By some accounts, D.J. Koh -- the new president of Samsung’s mobile communications business -- is a software guy. An insider at the tech giant, he previously helped develop its mobile payment and security platforms.

This is perceived to be a good thing because hardware innovations -- like the curved screen of the Galaxy S6 Edge -- have so far failed to boost Samsung’s bottom line.

Yet, others suggest that Koh will more likely maintain Samsung’s focus on hardware, which is a fair contention considering he was involved in the development of the Galaxy Note 5 and Galaxy S6.

In that respect, company watchers say Koh is virtually indistinguishable from J.K. Shin, the executive previously in charge of Samsung’s handset division. (Shin, to be clear, will remain head of the overall mobile division at Samsung.)

“Koh is basically the same person as Shin,” Chang Sea-jin, a business professor at Korea Advanced Institute of Science and Technology, tells Reuters. “There is no real change and Samsung appears to be continuing on the hardware-centric path.”

Further confusing matters, some say Samsung’s mobile failings are a result of not betting more resources on innovative hardware.

If Shin had ordered the production of more Galaxy S6 Edge smartphones -- and less of the non-curved screen editions – the company would have had a more profitable year, The Wall Street Journalsuggests.

The only thing we know for sure is that Samsung faces a terribly competitive and complex marketplace, with Apple leading on the high-end and China’s Xiaomi and Huawei leading on the low-end.

With its immense design and development resources -- not to mention its enviable brand equity -- it doesn’t make sense for Samsung to aim lower. To aim higher, however, product differentiation is more necessary than ever.

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