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Samsung CEO Resignation Comes Amid High Profits

Samsung, one big giant, dominating the smartphone industry, has recently seen a tumultuous leadership. The recent Samsung CEO resignation reflects a deepening leadership crises. The Samsung CEO resignation comes on the day the company has reported high profit figures.

Possible Reasons behind Samsung CEO Resignation

The CEO said that he had been contemplating the resignation for quite some time. Furthermore, he said that he could not possibly hold it for longer. He elaborated the crisis saying the company is going through unprecedented levels of uncertainty. Therefore, he believes the company should start with young and dynamic leadership. He added that he believes the young leadership will keep up with the fast changing IT industry.

No Timeframe Given for Successor

Since the company has recently come under a lot of criticism, it is undergoing a massive change. The company has a complicated hierarchy make it difficult to understand the power center. Critics assert that Samsung needs to simplify its organizational structure. Furthermore, the company has not yet announced a successor. It will provide a successor’s name in the near future.

Corruption Allegations

In August this year Lee Jae-Yong was convicted of bribery. He was given five years jail sentence. Mr. Lee got wrapped into a scandal worth millions of dollars. He allegedly channeled money through non-profits to gain political favors.

Serious Leadership Crisis

The IT industry experts believe that profits alone cannot justify the way company conducts business. It has to somehow silence the critics by inducting fresh blood into its senior leadership position. It means coming up with people at the top who are not associated with any allegations or wrongdoings.

Great Business for Samsung

Despite the internal leadership struggles, Samsung still remains one of the most profitable smartphone manufacturers. The increase in chip prices has massively added to the company’s profits.

Samsung did struggle a lot with its Note 7 battery problem. However, it pulled off a great marketing miracle when it introduced Samsung Note 8. The Note 8 has received the highest number of pre-orders by any smartphone made by the company.

A Bit about the Outgoing CEO

Kown, the outgoing CEO has a long history with the company. He became part of the company as a Researcher back in 1985. He became Samsung’s CEO in 2012. Furthermore, he does not intend to remain the Head of components and display units.

What Does Future Hold for Samsung?

Despite the upheaval in leadership, the company shows strong growth with a bright future. It is expected to remain this way by selling smartphone components to other makers. Among others, Samsung remains the only supplier of OLED displays to Apple’s iPhone.