A company insider said Thursday that the firm is to merge its MP3 player division with its cell phone division, and its DVD production division with its TV division.
''The MP3 business has a limited growth potential because Apple is dominating the field, he said, requesting anonymity. The situation is similar with the DVD sector.''
The alleged plan is part of Samsung's massive reorganization scheme, which is being shaped at its top management. The company's public relation office said it will have to wait to confirm the report. It said it will soon announce the reorganization plan.
''The scale of restructuring will be bigger this year than before,'' said spokesman Lee Seung-han. ''There was a reshuffling of chiefs of our sub-divisions and promotions of executives. Their new roles will be defined later on.''
U.K. news sites reported that Samsung could possibly pull out of the laptop market if it fails to gain over three times its current share of the worldwide laptop market.
The company promptly denied the report, saying ``Samsung has no intention of closing its Notebook division in 2011. We do however expect the market to become increasingly saturated and there to be increased price competitiveness,'' according to Techradar.com. The goal for the laptop division is to attain 5.7 percent of the global market, it said.
The share value has been inclining since its chairman and CEO Lee Kun-hee announced his resignation late last month and even after another CEO Yun Jong-yong's announcement of retirement on Thursday.
Samsung Electronics Drawing Restructuring Plan
Samsung Electronics is considering merging or selling some of its operations in an upcoming corporate restructuring program.
