Samsung Mobile merges with another branch of the South Korean giant.Here is what it changes for the number 1 of smartphones.

Samsung Galaxy S21 Ultra // Source: Frandroid

Samsung Mobile will no longer exist in its current form.Please note, the subsidiary dedicated to smartphones (but not only) of the Korean giant does not disappear, far from it.However, as Reuters explains, it merges with another branch of the sprawling group: the aptly named "electronic general public" division.This brings together activities around display solutions such as televisions, connected household appliances and innovation in the health sector.

In other words, mobile devices are no longer a separate band: Samsung smartphones, but also wireless headphones, tablets and connected watches or the development of the One UI interface are now included in the consumer electronics.On paper, it seems quite logical.Samsung's goal is to simplify its processes internally.

Several reasons can be mentioned to explain this change of organization.We can obviously cite the loss of speed of the mobile division of Samsung and the shortage of components, but these are not the only tracks to explore.

Samsung Mobile has lost a bit of its superb

Although undermined by the competitor Xiaomi, especially in France, Samsung is still the number 1 of smartphones in the world.Thus, the Samsung Mobile division has always occupied an important place in the South Korean group.However, this branch does not contribute today to 21 % of the overall profits of the firm, compared to around 70 % during its peak towards the early 2010s. The firm therefore wants to create a start.

Note that, for a few years, Samsung has generated much more money by selling the components it produces, especially its memory chips.Reuters thus underlines that this branch represents nearly three quarters of the group's operating profits over the last quarter.

Gain in responsiveness

In addition, faced with the shortage of components, Samsung is rather pessimistic.Providing for a long-term crisis, the South Korean group does not want to undergo too much supply concerns, the increase in the price of raw materials, logistical difficulties and acerbic competition.This merger of two internal branches should allow managers to gain responsiveness to manage these hazards.

"There may be faster execution to unlock funds or on decision -making," said an analyst quoted by Reuters.

Towards a better -known Samsung ecosystem?

We can also highlight the fact that bringing together the teams dedicated to mobile devices and those dealing with products for the connected home will promote the emergence of a real viable ecosystem at Samsung.

With its SmartThings solution, the brand already shows that it feeds this desire to create fluid connections between its different products.The creation of a stronger pole around this project can increase the chances of success.Teams that discuss better each other are more likely to find good uses for users.

Scandal and long -term project

Let us also remember that this reorganization intervenes in a particular context.Lee Jae-Yong, president of Samsung, involved in a corruption scandal affecting the South Korean government, was sent back to prison at the start of the year before being placed in parole this summer.A situation necessarily difficult to manage for the executive of Samsung who must organize effectively internally.

Note also that the group wants to put the package on the sectors of semiconductors, artificial intelligence and biopharmaceutical robotics with investments up to 240,000 billion won (around 180 billion euros) on the next threeyears.The priority is therefore not completely to the mobile division.

Finally, there are only two executive leaders, instead of three so far, to lead the boat on these different divisions.The first will therefore manage the entity resulting from the merger of mainstream mobile and electronic divisions.The second will take care of the branch dedicated to the production of fleas and components.In support, a third person will be fixed for good coordination between all these different sections of Samsung and should work closely with Lee Jae-Yong.

To follow us, we invite you to download our Android and iOS application.You can read our articles, files, and watch our latest YouTube videos.

Find all our articles on the overall shortage of components