There are quite a few signs that the smartphone industry is an increasingly difficult place to sell premium devices with premium price tags – and that’s even with smartphones being at their technological peak with every iteration. Naturally, a discussion about this phenomenon wouldn’t be complete without mentioning Samsung, who’s plight is the most dire considering its fall from grace in the premium sector. According to Creative Strategies analyst Ben Bajarin, the situation is such that Samsung will be forced out of the smartphone market in 5 years.
Bajarin’s basis for this prediction stems from the fact that Samsung is currently suffering from “The Innovator’s Dilemma“, which describes how initially successful companies try to pander to their customer’s current needs rather than innovate to anticipate future needs, eventually falling behind and never being able to close the gap. Another thing influencing this is the fact Samsung is charging far too much for their flagship devices when consumers are perfectly happy with “good enough” devices in the mid-range market.
“Android devices in the $200-$400 range are good enough for the masses leaving Samsung’s $600 devices and above stranded on an island.”
Bajarin also makes the interesting comment that Samsung knew this was coming, hence its investment in the Tizen operating system, but was stuck between a rock and a hard place given how much momentum they had selling Android devices. Obviously we’ll have to wait and see whether this truly does come to pass, but if you really wanted to, you could start to see the signs of Samsung’s mobile business unfolding. For the rest of Bajarin’s analysis, be sure to hit the source link at the bottom of this post.
What do you think about the theory that Samsung will be forced out of the smartphone market in 5 years? Let us know your thoughts in the comments below.
Source: Techpinions via Phandroid
