Samsung's chairman Jay Y. Lee has just announced that J.K. Shin, leader of the conglomerate's smartphone business will be replaced in this position by 54-year-old Dongjin Koh.
The official announcement follows a long series of rumors that appeared last year but that haven't been confirmed until today.
According to Reuters, J.K. Shin, who has been leading Samsung's smartphone business since 2009, will remain head of the overall mobile division for the company and he will focus on the long-term strategy and on developing new growth businesses.
Even though J.K. Shin's title sounds rather impressive, this is in fact a retirement for him, Korea Advanced Institute of Science and Technology business professor Chang Sea-jin said.
On the same note, his successor, Dongjin Koh seems to have the same training and expertise as J.K. Shin, which means there is a very low chance that things will change within Samsung's mobile division.
Samsung will continue the same hardware-centric path rather than improve its software that comes embedded within its smartphones, analysts claim.
“Koh is basically the same person as Shin,” Chang added. Dongjin Koh has held various roles within Samsung's mobile division since 2006 but has the same engineering background as J.K. Shin.
Rumors about J.K. Shin's departure started last year when the Samsung Galaxy S5's sales fell short of expectations. Unfortunately, things didn't change by much with the launch of this year's Galaxy S flagship smartphone, which means Samsung's earnings continue to decline at an alarming rate.
However, Samsung hopes to stop the decline of its earnings by making a few strategic changes under the new leadership of Dongjin Koh who played a major role in the development of premium devices like Galaxy S6 and Galaxy Note 5, as head of mobile research and development.
Still, analysts claim that until Jay Y. Lee, Samsung's heir-apparent, assumes the role of chairman, we won't be seeing any major changes.