Samsung vows faster innovation, issues surprise apology

Samsung issued a rare apology shortly after announcing the 3Q24 earnings estimation. The frank apology comes from the newly appointed Head of DS Division and VC at Samsung Electronics, Yong-Hyun Jeon.

Through a press release, Samsung’s leadership extended its deepest apology to customers, investors, and employees. The announcement highlights several potential decisions as part of reclaiming the edge in the mobile industry.

Samsung VC’s statement:

“We have fallen short of market expectations, causing concern not only about our fundamental technological competitiveness but also about the future of our company.”

“Many people have expressed concerns about Samsung’s current crisis, and we take full responsibility for it as the leaders driving our business.”

Samsung’s operating profit declined by 12.84% compared to the previous quarter. The company managed to increase its sales in Q3, but it fell short of expectations. The company eventually failed to secure significant growth despite the AI boom.

Samsung reiterates its commitment to turn crises into opportunities through challenges, innovation, and perseverance. The company’s leadership team will take the lead in overcoming this crisis, the Newsroom post states.

Potential decisions eyeing long term growth:

• Samsung will restore our fundamental technological competitiveness.
• Samsung will ensure fundamental competitiveness.
• The development of new technologies that do not yet exist in the world and achieving unparalleled quality are the only ways for Samsung to rise again.

Preparation before deployment:

• Samsung will pave the way forward, reigniting the passion it’s known for.
• Samsung won’t adopt a mindset of merely defending anymore, but it will realm itself with a spirit of challenge, racing toward even higher goals.

Organizational reshuffle:

• Samsung said to closely re-examine the organizational culture and working methods as well as immediately correct anything that needs fixing.
• When the company identifies issues in the field, it will openly discuss and fiercely debate them to drive improvements.