Samsung Electronics President Kodongjin: "Galaxy Note Will Continue... Launching in the Second Half of This Year Is Difficult"

At the 'Samsung Electronics 52nd Annual General Meeting of Shareholders' held on the 17th at the Suwon Convention Center, IM Division Head Ko Dong-jin is explaining the management status and answering shareholders' questions.

[Asia Economy Reporter Joeslgina, Suwon=Reporter Woo Su-yeon] Samsung Electronics has drawn a line on the long-rumored possibility of discontinuing the 'Galaxy Note' series, but confirmed that launching a new Note model in the second half of this year might be difficult. The company also expressed concerns about smartphone production in the second quarter due to a severe imbalance between semiconductor component supply and demand.

On the morning of the 17th, at the Samsung Electronics regular shareholders' meeting held at the Suwon Convention Center, Samsung Electronics IM (IT & Mobile) Division President (CEO) Ko Dong-jin responded to a question about the possibility of discontinuing the Galaxy Note by saying, "Releasing two flagship models with the S Pen in one year can be a burden, so I think it may be difficult to launch one in the second half of the year."

However, President Ko emphasized, "We are preparing to continue the Note category," and added, "We will strive not to disappoint Note fans." He also mentioned, "The Galaxy Note is a product category loved not only domestically but also overseas," and "It is the most high-end product in the wireless division's product portfolio."

He reaffirmed the policy to expand the foldable phone lineup. President Ko said, "The display issues have been largely resolved, and Samsung Electronics holds more than 80% of the foldable phone market." He continued, "If you ask whether we can produce foldable phones as much as regular smartphones, not yet," but added, "We are working to increase the quantity and are doing our best to supply to those who want them."

President Ko also addressed the recent semiconductor supply crisis causing production disruptions for some smartphone manufacturers. He said, "The supply and demand imbalance is very serious," and "Division heads are traveling to meet partners, and everyone is working hard to solve the problem." He added, "It is difficult to say that the issue is 100% resolved now, and the second quarter is somewhat problematic," but assured, "We will report results to ensure there is no major disruption to management."

Regarding criticism that too many models in the mid-to-low-end Galaxy A series might cause consumers to give up purchasing, President Ko responded, "We do not release that many models domestically." He said, "(The A series) is an innovative product for acceptable pricing," and "As the A series also applies 5G technology like the flagship S series, some models inevitably undergo changes in specifications or replacements."

He explained that Chinese manufacturers emphasizing cost-effectiveness are releasing models even more aggressively. President Ko added, "We will thoroughly examine whether this process causes confusion among consumers or environmental issues." Samsung Electronics will hold the ‘Samsung Galaxy Awesome Unpacked’ online event from 11 p.m. today to unveil new models in the Galaxy A series. This is the first global unpacking event for the Galaxy A series.

At the shareholders' meeting, many questions compared Samsung Electronics with competitors like Apple.

First, President Ko explained the competitive advantage strategy by saying, "(Samsung Electronics) has maintained the number one smartphone market share for the past 10 years based on technological leadership," and "We maintain technological superiority by broadly applying 5G technology from flagship S series to A series and introducing new form factors like foldable phones."

Regarding criticism about lacking marketing strengths targeting younger generations compared to Apple, he emphasized, "We are simultaneously making efforts that resonate with younger generations through Galaxy's unique technological innovation, open ecosystem, and open collaboration based on strategic partnerships." He said, "We cannot say we are fully satisfied compared to competitors," but added, "By continuing these efforts, we will strive to become a Galaxy loved not only by our loyal customers but also by young people."

On the wireless division's market share, President Ko self-assessed, "A differentiated technological leadership is necessary," and "I think we are doing well in technological leadership. However, it is true that we have shortcomings in brand desirability." He added, "We will definitely work to translate this into good results and market share."

Last year, Samsung Electronics IM division's sales were 100 trillion won, down from the previous year due to the impact of COVID-19. Operating profit recorded 11.5 trillion won. Despite the pandemic, the company strengthened its product lineup by launching new products targeting different customers, such as Galaxy S20, S20F, Note20, and A series. In the foldable segment, it unveiled the clamshell-type Galaxy Z Flip and Galaxy Z Fold2.

In the network business, in September 2020, Samsung Electronics signed a single export contract worth approximately 7.9 trillion won with Verizon, the largest mobile carrier in the United States, marking the largest scale in the history of Korea's telecommunications equipment industry.

The smartphone market in 2021 is expected to grow compared to the previous year, which was directly hit by COVID-19. President Ko emphasized, "We plan to expand flagship model sales based on improved price competitiveness through specification optimization," and "We will promote the popularization of the foldable category and expand the 5G portfolio to mid-to-low-end levels based on the 5G optimization capabilities we have built up."

This content was produced with the assistance of AI translation services.