Synopsis
Samsung Electronics Chairman Lee Jae-yong has urged the company's executives to adopt a do-or-die mindset to confront the challenges brought by the age of artificial intelligence (AI). His message emphasized the urgency for strategic transformation amid declining market shares in key sectors.Key Takeaways
- Executives need a do-or-die mentality.
- Strategic transformation is essential for survival.
- Investment in future technologies is critical.
- Samsung is struggling in the AI semiconductor market.
- Declining market shares in TVs, smartphones, and DRAM.
Seoul, March 17 (NationPress) Samsung Electronics Chairman Lee Jae-yong has called on executives to embrace a do-or-die mentality to tackle the significant challenges of the new age shaped by artificial intelligence (AI), according to industry sources on Monday.
This appeal was made in a video message to approximately 2,000 executives from the company's affiliates who have been attending training seminars since last month, as per the sources.
The video also highlighted the management philosophies of the late founding Chairman Lee Byung-chul and former Chairman Lee Kun-hee, underlining the necessity for a strategic overhaul. However, Lee did not personally appear in the recording, the sources reported, as noted by the Yonhap news agency.
"Samsung is confronting a do-or-die survival challenge. We must engage in profound reflection from the top," Lee stated in the video, stressing the critical nature of the situation. "We need to invest for the future, even at the cost of short-term profits."
During the seminar, attendees received a crystal plaque the size of a business card etched with the phrase: "Samsung people who are strong in crisis, adept at reversal, and fierce in competition," reinforcing the company’s emphasis on resilience.
Samsung has been facing difficulties in the AI semiconductor market, particularly in high bandwidth memory (HBM), where it trails behind competitor SK hynix Inc.
Key sectors such as TVs, smartphones, and dynamic random access memory (DRAM) have also experienced declining market shares in the past year.
According to its latest business report, Samsung Electronics' global market share for TVs dropped from 30.1% in 2023 to 28.3% last year. Meanwhile, the smartphone share fell from 19.7% to 18.3%.
Its DRAM share, where it holds a leading position, also decreased from 42.2% to 41.5% over the same timeframe.
Consequently, Samsung Electronics reported lower-than-anticipated earnings last year, attributed to sluggish sales in its flagship memory sector and delays in HBM rollouts.
Analysts now predict that Samsung Electronics’ operating profit for the first quarter could decline by 22.5%.
