Samsung Conducting Special Review For Its Mobile Business; Here's Why

Samsung is reportedly reviewing its business units, especially its mobile business, after receiving a flat response from its Galaxy S21 series. Earlier, the review was scheduled in July, but now it has been extended until this month.

Samsung Special Review Of Mobile Business

In fact, this assessment is expected to be different from the other Periodic reviews, which means that the company has only initiated a special review for its mobile business, reports The Elec.

For the unaware, Periodic reviews are normal and companies perform in four and five years to check the performance of their business unit. However, companies conduct special reviews when there is an issue with particular services.

Possible Reason Behind Special Review Of Samsung Mobile Business

These special reviews are conducted without any prior warning and when leadership believes that issue should be resolved. In addition, the report said that there are reasons why Samsung is conducting this review, firstly the company used to lead the smartphone market; however, now, it is losing market share.

Another expected reason could be Chinese smartphone maker Xiaomi is now leading the smartphone industry as per Counterpoint report.

Counterpoint And Strategy Analytics Views On Samsung Performance

"Due to a fresh wave of the COVID-19 pandemic in Vietnam, Samsung's production was disrupted in June, which resulted in the brand's devices facing shortages across channels. Xiaomi, with its strong mid-range portfolio and wide market coverage, was the biggest beneficiary from the short-term gap left by Samsung's A-series," Senior Analyst Varun Mishra at Counterpoint said.

Similarly, another market research firm Strategy Analytics claims that Samsung shipments have been declined by 7 percent to 12 million in the second quarter of the calendar year.

"Samsung is performing well with new 5G models from the Galaxy A series, but it faces increasing competition from Apple in the high-end and the Chinese vendors in the low-end, and it has failed to take full advantage of Huawei's demise in Europe," Strategy Analytics noted.

Meanwhile, GizBot has reached out to Samsung for a comment on this development and will update the story once we get a response. However, we believe that internal review seems good as Samsung might come up with some strategy to revive its mobile business.