According to Creative Strategies researcher Ben Bajarin, Samsung could be out of the phone business in five years.
The analyst says that there are two phenomena currently happening in the mobile business. On one hand there’s Apple, which is growing smartphone share in many regions where people said the iPhone peaked, raising average selling prices (ASPs) and convincing more Android users to switch.
On the other hand, there’s Samsung, who’s “suffering from nearly every symptom found in the You Are Being Disrupted handbook.” Bajarin says Samsung is suffering from “The Innovator’s Dilemma,” and that there’s nothing it can do to fix the downturn in its premium handsets business.
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I think Samsung not making phones can be possible since Blackberry, Nokia, and Sony used to sell a lot of phones, and now Blackberry, Nokia, and Sony are not getting as many buyers, and are not as profitable as the past because of poor decisions they made, and cheaper alternative brands like LG, and Motorola.
Fewer people are buying new smartphones because their old smartphones like iPhone 5 and Samsung Galaxy S4 are still pretty good if they did not buy the cheapest and slowest new smartphone in the past, and bought something which was made to last.
Plus, there are now a lot of more affordable smartphones from companies like Blu, Motorola, Xiaomi, Huawei, Lenovo, One Plus, Micromax, and LG which are building phones which are as good, or better than similarly priced Samsung phones. Soon, people also have the options of building their own phones from parts like computers.
There is also a possibility that the Smartphone will be replaced by a better communication device in the future which does not require people to pay expensive monthly cell bills just to talk on their smartphone, send text messages, and browse the web at slower speeds than wired internet connections.
The analyst says that there are two phenomena currently happening in the mobile business. On one hand there’s Apple, which is growing smartphone share in many regions where people said the iPhone peaked, raising average selling prices (ASPs) and convincing more Android users to switch.
On the other hand, there’s Samsung, who’s “suffering from nearly every symptom found in the You Are Being Disrupted handbook.” Bajarin says Samsung is suffering from “The Innovator’s Dilemma,” and that there’s nothing it can do to fix the downturn in its premium handsets business.
Source:
I think Samsung not making phones can be possible since Blackberry, Nokia, and Sony used to sell a lot of phones, and now Blackberry, Nokia, and Sony are not getting as many buyers, and are not as profitable as the past because of poor decisions they made, and cheaper alternative brands like LG, and Motorola.
Fewer people are buying new smartphones because their old smartphones like iPhone 5 and Samsung Galaxy S4 are still pretty good if they did not buy the cheapest and slowest new smartphone in the past, and bought something which was made to last.
Plus, there are now a lot of more affordable smartphones from companies like Blu, Motorola, Xiaomi, Huawei, Lenovo, One Plus, Micromax, and LG which are building phones which are as good, or better than similarly priced Samsung phones. Soon, people also have the options of building their own phones from parts like computers.
There is also a possibility that the Smartphone will be replaced by a better communication device in the future which does not require people to pay expensive monthly cell bills just to talk on their smartphone, send text messages, and browse the web at slower speeds than wired internet connections.
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