Samsung's New Mobile Division President says 2016 will be Tough
Yesterday we posted a report titled "Samsung's Stagnating Smartphone Business Leads to Management Shake-Up for Second Leap in Mobile Business." In that report we noted that Samsung shook-up their mobile division management by promoting executive vice president Koh Dong-jin (noted in our cover graphic), who was previously in charge of mobile R&D, to president of the mobile business due to stagnating smartphone business. Today Dong-jin noted in a press scrum that Samsung's smartphone sales will experience another tough year.
The Korean press noted today that the new head of Samsung Electronics' handset business said after his weekly Wednesday meetings with heads of Samsung Group affiliates in Seocho, southern Seoul, that the company doesn't expect its mobile business to see a "huge upturn" in profits next year. More specifically, Dong-jin noted that "Next year will be tough," though adding that he doesn't think the division is in 'deep trouble.'
Will Samsung's shaky outlook going forward be the same for Apple? Not likely. However, there's new noise coming from a Credit Suisse analyst saying that Apple's Asia supply chain confirms continued weakness.
Yet we've been hearing rumors like that dating back to early October and November. The latter rumor was based on Pegatron reportedly slowing down iPhone 6s production. Yet did Apple simply shift more orders from one supplier to another for some reason? We don't know but one supplier experiencing a production slow down doesn't necessarily mean that iPhone 6s sales are slowing. Until more Apple suppliers like case suppliers or Foxconn confirms a similar slowdown, it's not really a bankable rumor. Yet with that said, the rumors have brokers on edge – something that we've been hearing about all year round unjustifiably.
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