Roh Tae-moon has been named as the new head of Samsung Electronics mobile division in a move signaling that the South Korean tech giant may work to push out more China-based ODM smartphones into the market.
According to an executive-level reshuffling announced by Samsung Electronics on Jan. 20, a total of nine people were given promotions or new positions. Among them, Roh was named to head the IT & mobile division, which is the key smartphone-making arm of Samsung.
“Amid the intensifying competition, we believe Roh is the right person to present new strategies and breathe new air into the organization,” said Samsung regarding the reshuffling. “Roh is a relatively young CEO with extensive management and strategic expertise that would help Samsung proactively cope with uncertainties in the global business environment.”
Roh was one of the biggest noted cheerleaders for Samsung’s ODM policy, and industry watchers say that naming him as the new mobile chief is expected to give a renewed push to Samsung’s moves to cut prices by adding more Chinese suppliers such as Wingtech and Huaqin for the ODM procedure.
While this could cut prices, it spells bad news for local suppliers who have been providing parts for the Samsung mobile division is likely to have to deal with the Chinese suppliers, who are prone to present more disadvantageous conditions, or have to secure new partners due to a lack of business.
The Elec is South Korea’s No.1 tech news platform.