Korean giant demands crisis management over currency fluctuations
Samsung has claimed it is now in ‘emergency mode’ due to the ongoing economic crisis in Europe.
According to a Samsung official addressing reporters in Korea on Wednesday, the firm has declared a need for “crisis management” due to the fluctuating value of the euro.
Samsung, the world’s largest smartphone vendor, has substantial operations in Europe, and while retail spending is being hit in the region, it is the drop in value of the euro which has got the firm spooked.
According to the Korea Times, a Samsung official raised concerns over the euro which is “rapidly losing its currency value”, and highlighted concerns over the stability of Samsung’s “profit making structures”.
Officials said that Samsung is suffering from a decline in dollar-denominated revenue, with the euro value dropping in comparison as the fate of the single currency hangs in the balance.
The firm is now likely to take steps to ensure its bottom line in the facing of continuing uncertainty in the European market, an area where Samsung flogs many of its products.
This has led to talks of a need for crisis management, just as the firm declared during the economic crisis back in 2008.
As analysts have pointed out to ChannelBiz UK, the euro situation has the potential to create havoc in the channel, and there is perhaps little vendors can do to protect partners.
ChannelBiz UK approached Samsung to find out what measures would be taken as part of an ‘crisis management’, and how this would affect its channel operations in Europe, but is yet to receive a reply.