Samsung Electronics to get reorganized into two separate units, here’s the details

December 13, 2012
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According to several reports coming out of South Korea, Samsung has just reorganized the company. While we wait for an official press release, here’s what we know: The parts of Samsung that make devices (phones, TVs, etc.) that get sold to consumers, they’re all going to be lumped together into one group. The parts of Samsung that make the components that go inside devices from not just Samsung, but other companies as well, they’re going to get lumped together into another group. Kwon Oh-hyun will be in charge of the latter group while Choi Gee-sung will head of the former.

The obvious question is why? Why do this now? Some speculate it’s because Samsung was accused of leaking information about Apple’s products within the various divisions. For example, Samsung Semiconductor knew Apple was going to come out with a device that had a high resolution 9.7 inch screen; the iPad. They would then tell the Samsung division making tablets that they should work on something to match that product.

Do we think that these kind of corporate firewalls actually work? Not really. Like we said earlier, we’re awaiting an official press release to get some more information, but it looks like it’s better to keep the component side of the business and the device side of the business on two different schedules. You don’t want the chief scientist in charge of making AMOLED screens to hold back innovating because said AMOLED screen wouldn’t get launched at the same time as the next Galaxy phone.

What else will Samsung announce? They’re going to bet big on health and biology. The health part makes sense since the world is getting older and thus needs more medical care. As for biology, we can only speculate at this point.

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