Samsung’s flagship Galaxy S5 has reportedly missed sales targets by a whopping 40 per cent this year, according to a Wall Street Journal report.
The WSJ’s anonymous sources claim the company is scrambling to shift the excess inventory as it prepares to unleash the next generation. As a result of the drop-off, the positions of senior officials, including mobile boss J.K. Shin, could be under threat following the drop off in numbers.
Samsung relies heavily on its dominant mobile division in order to prop up less profitable sectors of the company.
However, the firm recently announced a 60 per cent fall in profits at the end of the last quarter, citing falling sales of top devices and shrinking profit margins on lower-end handsets.
Last week the company vowed it was cutting down on the number of handsets it produces in order to streamline its operation and compete with the low-cost Chinese manufacturer. That’s a tactic rival Android manufacturers like HTC, Motorola and LG have used in recent years.
Will this malaise cost J.K. Shin his job or is this report a sign of political jousting among Samsung’s three CEOs?