Samsung marketing boss may take fall for profit slump

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D.J. Lee
D.J. Lee

D.J. Lee is reportedly leaving the company as Chinese competitors undersell Samsung smartphones

Samsung's prominent marketing chief, D.J. Lee, is reportedly set to leave the company after mobile profits tanked in the third quarter.

Samsung reported a 34 percent year-over-year decline in mobile revenue to $20 billion in October due to poor smartphone sales. It follows intense competition from cheaper Chinese vendors, eating into sales of Samsung’s flagship Galaxy S5 smartphone.

According to The Wall Street Journal, J.K. Shin, Samsung’s mobile chief, will keep his role in a wider management shuffle, with sales and marketing boss Lee set to take the fall.

Samsung refused to comment on the matter and it is not clear who might replace Lee should he depart.

Lee is a prominent public figure at Samsung, usually presenting the company’s latest devices and commenting on new launches or innovations. As noted by the Journal, Lee has often replaced Shin onstage to demo new phones.

Samsung announced wider management changes, with all three co-chief executive officers remaining in place, despite the poor results. Lee Jae Yong, the vice chairman, announced 11 changes to the management team, citing business performance.

Lee had become increasingly visible at Samsung after the hospitalization of his father, company chairman Lee Kun Hee, in May.

However, the company has seen a decline in fortunes across the business, including IT, communications and consumer electronics.

This article first appeared on marketingmagazine.co.uk.

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