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Samsung's mobile business is under review following weak Galaxy S21 sales

By Joshua Swingle

Published: Aug 05, 2021, 9:59 AM

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Samsung's mobile business is under review following weak Galaxy S21 sales

The Galaxy S21 series has sold worse than the Galaxy S10 and Galaxy S20 in its first six months of availability, and the disappointing results may have led to a prolonged management review of Samsung’s mobile business.

A review of Samsung's mobile business has been extended

The Elec is reporting that Samsung Electronics has extended the management review of its mobile business this month. It was meant to end in late July, but a source says that the deadline has now been extended to the end of August.

Depending on the results of the review, Samsung may decide to conduct an audit of its smartphone division. For those of you not familiar with the term, an audit is an examination and evaluation of financial statements.

The current review is being performed by Samsung’s Business Support Task Force and has been ongoing since the second quarter. There are two types of reviews: Periodic Reviews and Special Reviews.

Periodic Reviews happen once every four to five years and are focused on increasing the efficiency of a business. Special Reviews, on the other hand, are done without warning when Samsung’s leadership believes there’s a problem.

The Elec reports that Samsung Mobile’s current review is a Special Review brought on by lackluster earnings in recent quarters and the ongoing supply chain problems, which ceded Samsung’s smartphone top spot to Xiaomi in Europe.

The Galaxy S21 isn't selling well and Samsung isn't happy with MediaTek

While not confirmed, the performance of Samsung’s Galaxy S21 series could be directly related to the unexpected review. Estimates suggest 13.5 million Galaxy S21 units have been sold in the first six months of sales.

Those numbers are down 20% compared to the Galaxy S20 line, which was deemed a massive failure. They’re also a whopping 47% lower than the numbers seen following the Galaxy S10 series launch in 2019.

Analysts believe Samsung’s ongoing supply chain issues are temporary and that things will improve in the coming quarters. However, Samsung management doesn’t seem to be accepting any excuses.

Sources say the company’s relationship with MediaTek is on the rocks. The supplier’s chipsets are found in recent Galaxy A models like the Galaxy A32, but MediaTek reportedly told Samsung recently that it couldn’t meet demand.