Samsung’s hat trick: Three new CEOs as Q3 revenues rise and profits triple

31 Oct 20174 Shares

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Samsung Galaxy Tab S tablet. Image: Thomas Deco/Shutterstock

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South Korean tech giant intends to emerge from unprecedented crisis in fighting form.

Samsung has no doubt had a very trying year due to recalls, scandals and the recent stepping down of its CEO.

However, as the company reveals strong Q3 results, it is also revealing something of a fighting spirit.

To replace Kwon Oh-hyun, who stepped down citing an “unprecedented crisis” at the company, Samsung has appointed three new CEOs.

Each leader will have a specific area of focus: Kim Ki-nam will head up Samsung’s lucrative electronic components and chips business; Kim Hyun-suk (HS Kim) will run Samsung’s consumer electronics group; and Koh Dong-jin (DJ Koh) will be in charge of Samsung’s crucial mobile and IT group.

BK Yoon and JK Shin are resigning from their previous co-CEO roles and it is not yet clear if any of the three new CEOs will have the same elevated status as Kwon.

The chips are up

Either way, Samsung’s efforts to steady the ship will be aided by the company’s rude financial health.

The South Korean tech giant reported its biggest operating profit ever, tripling profits to 14.53trn won ($12.92bn), on revenues of $55.18bn, up 30pc on last year.

As well as healthy smartphone sales as it leaves the Note7 recall issue in the rear-view mirror, Samsung is also cashing in its chips when it comes to the sale of memory and display components.

Samsung sells the same processors it uses in its flagship electronic devices to rival device-makers such as Apple.

Overall, Samsung’s semiconductor operating profit tripled to $8.86bn as revenues from that unit soared 51pc to $17.7bn in Q3.

“Strong demand for high-performance memory chipsets for servers and flagship mobile devices was a contributing factor to the company’s overall robust performance,” Samsung said.

Samsung Galaxy Tab S tablet. Image: Thomas Deco/Shutterstock

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com