The sale and solicitation of corporate headquarters is nothing new, with everyone from BlackBerry to Nokia to Sony having tangled with tepid sales. Samsung Europe, currently based out of London, England, will soon be moving its headquarters to Warsaw, Poland according to a new report published by The Korea Herald.
Despite the Korean conglomerate’s refusal to comment on the matter, numerous sources reportedly confirmed the move’s authenticity. According to one source, “Samsung is laying off employees in Europe. The relocation seems to be part of its business restructuring amid sluggish sales.” “Mobile communications and other key business divisions have already started moving. The relocation will finish within the year,” said another insider, who requested anonymity. Last year’s European sales saw a decrease of 22.7 percent, falling from 52.67 trillion won in 2013 to just 42.95 trillion ($37.36 billion). This is believed to be a result of rivals – especially those OEMs from China – taking advantage of the weakened value of the Euro.
The news marks yet another important milestone in Samsung Europe’s tumultuous recent history. Last December it shuttered its flagship UK store amid poor earnings, and just this August, surprised the continent upon revelation that its flagship Galaxy Note 5 would not see release there, at least for 2015.
It is suggested that this new action may signal a change in the OEM’s European focus: rather than seek to dominate the premium market in Western Europe, it may instead opt to focus on the developing markets in Eastern Europe. Complimenting this theory are the numerous rumors that Samsung is preparing to release its Tizen powered Samsung Z3 phone in the region.
Poland got Lollipop on several Samsung smartphones before any other country.
Readers may be aware that Eastern Europe – Poland in particular – has often seen a heightened priority with respect to Samsung’s business strategy. Poland was the first country in the world to have the Galaxy S5 Lollipop update pushed to devices, for example, and then for the Galaxy Note 4 as well. Even neighboring Russia was initially to be the first country to receive the original Samsung Z, before it was canceled.
According to the report, Samsung has “operated a manufacturing plant after it acquired a local home appliance maker, Amica, in 2009. The company also runs a research and development center in the country.” This would definitely serve to explain the relocation decision, as does cheaper operating expenses and a smaller immediate market to contend with.