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October 13, 2017updated 26 Jul 2022 8:36am

Samsung poised to rake in record profits despite leadership crisis

The Samsung Electronics CEO has resigned and called for a new, youthful leadership approach to take on the fast changing industry.

By Tom Ball

Samsung is set to smash its profit record and market expectations with a 14.5 trillion won prediction for the third quarter, driven by a surge of Galaxy Note 8 and chip business success.

The record would be successive as the company set its standing 14.07 trillion won profit record in the second quarter of this year, indicating a dauntless upward trajectory for the business.

Fuelling this continuous success, the Samsung chip business is supplying the rise in IoT devices, in addition to providing chips for servers and smartphones.

Samsung poised to rake in record profits despite leadership crisis

Momentum has been gained following the release of the Samsung Galaxy Note 8, with success anticipated by 850,000 pre-orders in South Korea, another new high for the organisation.

Contrasting the booming business successes, the Samsung Electronics CEO has stood down as the leadership tumult continues.  He called for youthful leadership suited to taking on the fast changing industry.

Samsung Electronics CEO, Kwon Oh-hyun, said in a statement according to the BBC: “As we are confronted with unprecedented crisis inside out, I believe that time has now come for the company [to] start anew, with a new spirit and young leadership to better respond to challenges arising from the rapidly changing IT industry.”

The 60 company strong Samsung conglomerate it undoubtedly weathering a severe management crisis. In recent months the heir of the group, Lee Jae-yong has been dealt a five year prison sentence for corruption and bribery, adding to instability at the top of the organisation.

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Leadership problems have not hindered the company’s business progress, nor have they slowed progress in terms of making major plays in new markets. Recently Samsung unveiled a $300 million investment fund plan targeting autonomous vehicles, joining numerous high profile tech organisations crowding the space.

Samsung is also engaged in a cutting edge plan to utilise virtual reality and artificial intelligence for the diagnosis of mental health.

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