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Samsung Electronics CEO Resigns Over 'Unprecedented Crisis' (bbc.com)

Posted by BeauHD on from the off-the-wagon dept.

According to BBC, Samsung Electronics chief executive Kwon Oh-hyun has resigned, saying the company is in an "unprecedented crisis." It's the latest management upheaval at the firm after the heir of the entire Samsung Group was imprisoned for corruption in August. From the report: Mr Kwon is one of three co-chief executives of Samsung Electronics. His resignation comes on the same day the firm forecast record quarterly profits, citing higher memory chip prices. Mr Kwon said he had been thinking about his departure "for quite some time" and could "no longer put it off." "As we are confronted with unprecedented crisis inside out, I believe that time has now come for the company [to] start anew, with a new spirit and young leadership to better respond to challenges arising from the rapidly changing IT industry," he said in a statement. He will remain on the board of Samsung Electronics until March 2018.

16 comments

  1. Here we go again by inking · · Score: 1

    Does the Note 8 explode even better than its predecessor?

    1. Re:Here we go again by K.+S.+Kyosuke · · Score: 1

      Only if you bribe it.

      --
      Ezekiel 23:20
    2. Re:Here we go again by Tough+Love · · Score: 1

      Why don't we ask an Apple employee, to be sure of getting an honest opinion?

      --
      When all you have is a hammer, every problem starts to look like a thumb.
  2. Known coward by sanf780 · · Score: 1

    Things go south, and so he does. If I were an stakeholder, I would be worried about the future.

  3. I guess... by Anonymous Coward · · Score: 1

    ...he opened the third envelope.

    1. Re:I guess... by rmdingler · · Score: 4, Funny

      A fellow had just been hired as the new CEO of a large high tech corporation. The CEO who was stepping down met with him privately and presented him with three numbered envelopes. "Open these if you run up against a problem you don't think you can solve," he said. Well, things went along pretty smoothly, but six months later, sales took a downturn and he was really catching a lot of heat. About at his wit's end, he remembered the envelopes. He went to his drawer and took out the first envelope. The message read, "Blame your predecessor."

      The new CEO called a press conference and tactfully laid the blame at the feet of the previous CEO. Satisfied with his comments, the press -- and Wall Street - responded positively, sales began to pick up and the problem was soon behind him.

      About a year later, the company was again experiencing a slight dip in sales, combined with serious product problems. Having learned from his previous experience, the CEO quickly opened the second envelope. The message read, "Reorganize." This he did, and the company quickly rebounded.

      After several consecutive profitable quarters, the company once again fell on difficult times. The CEO went to his office, closed the door and opened the third envelope.

      The message said, "Prepare three envelopes."

      --
      Happiness in intelligent people is the rarest thing I know.

      Ernest Hemingway

  4. What?!?! by freeze128 · · Score: 3, Insightful

    They recall their phones TWICE, Their leader is imprisoned, and they post record profits? How is this freakin possible?

    1. Re:What?!?! by alexru · · Score: 3, Informative

      Tax breaks. Korea is very corrupt.

    2. Re:What?!?! by hai_Priesty · · Score: 1
      I didn't read the full article but (emphasis mine)

      Mr Kwon is one of three co-chief executives of Samsung Electronics. His resignation comes on the same day the firm forecast record quarterly profits, citing higher memory chip prices.

      That's equivalent of "The market is good so we are so very sure that next quarter is the best quarter ever.", and this statement tie perfectly with his new-spirit-whatever statement that comes along his resignation speech.

    3. Re:What?!?! by Anonymous Coward · · Score: 1

      Well they are just emulating the USA.

    4. Re:What?!?! by thegarbz · · Score: 1

      They recall their phones TWICE

      Something which wouldn't affect their current quarterly profit since it didn't happen last quarter.

      Their leader is imprisoned, and they post record profits? How is this freakin possible?

      Their leader was imprisoned for corruption. That would be one way to answer your question.

      Another would be to realise that quarterly profits are highly dependent on the current market situation. With a shortage of memory chips caused by some quite major product releases recently prices are high, and all of that is 100% margin increase for the worlds largest producer of memory. Combine that with the very recent release of the phone that replaced the recalled one which many people were going nuts over, they would need to be seriously incompetent to not post record quarterly profits. I mean you could replace all of management by monkeys and the outcome would be the same. Like the oil industry this profit is driven by externalities combined with the cyclical nature of profit from product launches.

    5. Re:What?!?! by Anubis+IV · · Score: 1

      Their record profits are coming from their chip division, driven primarily by sales of memory. Even Apple uses them as their main supplier for all iPhones. Samsung is positioned to profit off the entire mobile industry, not just off of their own devices. That may be part of the reason Apple and other companies recently banded together to buy Toshiba’s memory business, since it’d give them a way to ensure there’s some competition, or at the very least an alternative supplier who can help drive prices down.

    6. Re:What?!?! by Anonymous Coward · · Score: 0

      That depends. If the demand is sustained then a failure to invest in additional production capacity could mean that additional competitors crop up and may even edge you out of the business. On the other hand, if those competitors don't have deep enough pockets you may be able to sell below cost until they go under and then buy up their production capabilities.

    7. Re:What?!?! by brunes69 · · Score: 1

      It's possible because Samsug makes the components inside ALL phones, not just it's own. In fact it has so many components inside the iPhone X that Samsung is set to profit more off of that phone than off of it's own Galaxy S8.

  5. If you ain't cheating you ain't trying by Anonymous Coward · · Score: 1

    Korea is like the USA in the 1950's they still have honor and integrity. When the President of Korea was caught in a bribery scandal. He committed suicide. Can you imagine President Clinton or Trump having enough shame to kill themselves. Not on your life. On the other hand, however, I don't really have a problem with GIVING out bribes. Whatever it takes to make your company succeed is right by that company and the employees. Accepting bribes is another thing entirely. When you accept bribes you are selling out your own people for the sake of personal profit.

    Great companies and great nations do not rise to the top by playing fair. Do you really think Lenova is not handing out bribes left and right? Hell Russia and China are paying U.S. media executives billions of dollars to keep the public worried about racial issues and ignore the fact that the politicians in congress are accepting bribes from Russia, China and Mexico. Do I think Russia and Mexico are evil for this? No they are not. The USAian politicians and media executives are though for accepting them.

    How could the Liberal Left coast Elite types ever live in their luxury Manhattan apartments if their forefathers had not bribed the Natives with some beads so many years ago.

    In summary: Giving bribes good and is what all responsible companies and countries do in order to assure success. Taking bribes is deplorable and marks you as a traitor to your own people.

    1. Re: If you ain't cheating you ain't trying by Anonymous Coward · · Score: 0

      Some would interpret committing suicide as taking the coward's way out.