Samsung Electronics chairman Lee Kun Hee responded to investor concerns by urging his company to adopt new ways of thinking and to reduce its focus on hardware.

In a statement reported by The Wall Street Journal, Lee said the company must “get rid of business models and strategies from five, ten years ago and hardware-focused ways” and that research and development “should work around the clock”.

In an emailed note sent to Bloomberg, Lee was quoted as saying the company should create new businesses by making use of technologies from other industries.

“We have to change once again. We must give a bigger push for innovations, including in business structure, so that we can lead industry trends,” he said.

The electronics giant’s preliminary earnings are due to be released next week with analysts forecasting the mobile division to post operating profit of KRW6.2 trillion, a 14 per cent year-on-year rise, but 8 per cent down on the prior quarter.

Samsung’s share price fell 4.6 per cent to KRW1.3 million ($1,239.80) yesterday, representing the biggest decline since 7 June, and knocking nearly $9 billion from the company’s value.

Analysts attributed falling demand for high-end devices and competition from Apple’s latest iPhones for the share price drop.