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Wednesday, December 9, 2015

Samsung’s New Mobile Chief Faces Uphill Battle in Smartphones


SEOUL—Samsung Electronics Co. SSNHZ 0.00 % 's new versatile boss offers a distinct difference to J.K. Shin, the hard-charging official who drove the world's greatest cell phone producer through a time of hazardous development additionally one stamped by trouble. 

On Tuesday, the South Korean tech monster said 54-year-old D.J. Koh, who was responsible for Samsung's portable innovative work, would be elevated to versatile boss. Mr. Koh is broadly acknowledged inside Samsung as the official who laid the preparation for a percentage of the portable division's late advances in programming and administrations including the versatile installment framework Samsung Pay and endeavor security stage, Knox. 

Rather than the 59-year-old Mr. Shin, who will stay as a co-CEO of Samsung, Mr. Koh is portrayed by workers as an anticipated, sensible and sensible official who is dedicated and coordinate. 

"He's not a screamer," said one Samsung official, who has worked intimately with Mr. Koh. Rather, Mr. Koh has climbed the positions to a limited extent by being all around preferred and stays under the radar, even in South Korean business circles, said the official. 

The choice to raise Mr. Koh recommends an ability by Samsung to make programming and administrations a more critical piece of offering its equipment, as it feels the focused crush from its cell phone rivals. 

"Handsets are being commoditized, and in light of this, I think Samsung needs to concentrate on R&D more," said Daniel Kim, an examiner at Macquarie. 

Samsung, which declined to make Messrs Koh and Shin accessible for input, declared the reshuffle as a feature of its yearly year-end administration shake-up. 

In an announcement, Samsung said Mr. Shin and another co-CEO who heads the shopper gadgets business, B.K. Yoon, would venture once more from everyday obligations. 

The administration change comes during a period of significant difficulties for Samsung, which is fighting a resurgent Apple Inc. AAPL - 2.21 % in the top of the line cell phone business sector and a pile of spending plan Chinese and Indian cell phone producers in the low end. 

The organization's choice to take Mr. Shin out of his everyday part takes after a wounding two years for Samsung's portable division. A year ago's upgrade of Samsung's lead Galaxy S cell phone arrangement tumbled with customers, and Mr. Shin bungled the arrival of the current year's more mainstream upgrade, the Galaxy S6 and its bended screen sidekick the Galaxy S6 Edge. 

Mr. Shin misread interest for the gadgets, delivering excessively few Galaxy S6 Edge cell phones and an excess of the non-bended screen release. That prompted a 38% decrease in Samsung's portable benefit in the second quarter, when the telephones were discharged. Samsung was just ready to demonstrate a bounce back in the second from last quarter by climbing the arrival of another cell phone by a few weeks and including another supersized variant of the Galaxy S6 Edge. 

Mr. Koh, the new portable boss, will assume control administration of the versatile divison's innovative work, item arranging, outline, assembling and deals and showcasing capacities from Mr. Shin. 

Mr. Koh joined Samsung directly in the wake of moving on from South Korea's Sungkyunkwan University in 1984, during a period when the organization was a residential centered brand producing low-end TVs and tape decks. 

Mr. Koh later earned a graduate degree at the University of Sussex in the U.K. furthermore, is portrayed as much more agreeable in English discussion than his antecedent. 

Somewhere around 2000 and 2006, Mr. Koh was situated in Europe as an exploration official at Samsung before he formally joined the versatile unit, just before the dispatch of Apple's first iPhone. Mr. Koh has been included in portable item arranging and R&D since. 

Samsung's administration change likewise alluded to the aggregate's restored concentrate on the social insurance business in front of a normal initiative progression to beneficiary evident Lee Jae-yong, who has ventured up his vicinity in dealing with the business domain while his dad stays sick. 

Jun Dong-soo, who supervised the first sale of stock of Samsung's data innovation administration unit Samsung SDS Co. 018260 1.14 % a year ago as its CEO, was reassigned to head Samsung Electronics' restorative hardware unit. 

Then, Mr. Lee's sister, Lee Seo-hyun, was elevated to president of the design bunch at Samsung C&T Corp. 028260 0.00 % , the true holding organization of the Samsung organizations. Samsung C&T regulates a scope of organizations, from development to form. 

— Min-Jeong Lee in Seoul added to this article. 

Keep in touch with Jonathan Cheng at jonathan.cheng@wsj

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