Samsung splitting into two "just 'cuz"

Actually, there’s a real reason they’re splitting. Their LCD and semiconductor arms will be combining, being the two most stricken in these dark economic times, which leaves mobile and media to be together in (hopefully) lasting harmony. Sudden loss of credit (that probably never existed really) and loss of consumer confidence have hammered income in their LCD and memory sectors, normally cash cows for fueling investments and (failed) acquisitions. This comes after a shake-up in management as well, so I think that punishment has already been meted out.

I think the idea is that the ship is too big to weather the storm head on, so they’ve cannibalized it and made it into a couple big whaleboats, more maneuverable and easier to harpoon from. Not sure what the harpoon signifies in that little fantasy but you get the idea. The low-performing businesses will be able to focus on profitability and regaining market with decisions and spending that don’t affect the other divisions.

What does this mean for you, the consumer? Likely very little. It’s not like they’re chainsawing the building in half, they’re just compartmentalizing where the water is coming in, kind of like what was supposed to happen on the Titanic. Let’s hope things turn out better for Samsung.