South Korean technology giant, Samsung Electronics has just recently recovered from a recall fiasco involving their smartphone Samsung Note 7. Many cases of the phone bursting into flames were recorded which caused airlines to ban it aboard flights.
After the Note 7 setback and recall, the arrest of one of their leaders was another hit for the tech giant. However, Samsung has now recovered with remarkable speed, shocking investors with record-breaking profits.
However, Samsung is going to be confronted with difficult times in the future as a Chinese company is now going to start becoming a rival and take aim at Samsung’s semiconductor business.
Samsung also faces raised eyebrows over the company’s questionable leadership.
Chung Sun-Sup, an expert who runs the website Chaebol.com mentions,
“The company will enjoy the global semiconductor boom over the next few years,”
However he then adds,
“But the bigger challenge for Samsung is what happens after the harvest, as the firm faces questions over its “untested” leader and the growing threat from Chinese rivals.”
The gap in leadership will not affect the daily running of the tech empire, however, Samsung’s ability to take major decisions for long-term business investments has been compromised.
This week Samsung surprised the public by posting a forecast beating 14.1 trillion won (U.S $12.6 billion) in operating profits in the second quarter of 2017. The profit is a whopping 73% jump from 2016, making it better than Apple for the first time in history.
Read all about it here!
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