One analyst predicts that Samsung, a victim of the innovative dilemma could stop the Galaxy range. Worse, it might even leave the mobile phone within 5 years. The reason: these technological innovations are no longer sufficient against a far less expensive competition. Explanations.
This is not the first time we hear a preacher say loud and late the reign of a world leader. We all remember Nokia’s previously uncontested leader, but failed to take the turn of smartphones, with the outcome that we know (although a revival is to consider in this case). Although Samsung has already been such a prediction. Twice even. First, Rick Osterloh, chairman and CEO of Motorola, explained last February that Samsung would be the next Nokia. A few weeks later, it was the turn of Kirt MacMaster, the controversial CEO of Cyanogen, to state that Samsung will be the next victim of the new round of mobile telephony, as the Finnish and Canadian brands before him. And this will happen before 2020.
Qu’importe Samsung is innovative, as with the Galaxy S6 + Edge,
consumers do not watch the price
“the innovative dilemma”
In March, despite a position yet confirmed leader Samsung, the About Kirt MacMaster certainly cringe. Nevertheless there might be some truth. Because someone else says that Samsung could get out of the mobile phone in the next five years. Or at least the phone Android. And it is neither a competitor nor a troublemaker in mobile telephony which assert, but an economic analyst. His name is Ben Bajarin. He works at Creative Strategies, a consulting firm in Silicon Valley. And has published a very interesting report on the Site Techpinions.com .
Why Samsung could leave the phone in the next five years? Because it will be a victim of the “dilemma of the innovative”. The symptom is simple: a leader in a market, which has become mature and competitive, is no longer able to monetize it develops new products. In other words, technical innovations are not sufficient arguments to get consumers to buy its products when they are put in front of an often much cheaper proposal. A competition that has a name (Xiaomi, Huawei, ZTE, OnePlus, Meizu) and offers enough good products to suit everyone. In France, Alcatel OneTouch Wiko and broadly supported this trend is clearly marked.
Technological innovation is worthless!
Five years ago, mobile phones swore by Samsung and the excellence of its products. If Apple created the smartphone market in 2007, Samsung was clearly one that has democratized from all types of consumers, high-end to low cost. He also created the segment of phablettes. And, beyond the technological performance (AMOLED screen, Exynos chipset, photo sensor ISOCELL, fine engraving, etc.), it is the interface that hides Android, ergonomics and price (against the iPhone) that have charmed the public.
But in recent years, Samsung should not simply deal with Apple that counter each year sells more and more iPhone (when their price increases). He must also fight against low cost competition that recently succeeded (and especially in 2014 and 2015) to develop theoretically comparable to Samsung products, which is as much an inspiration as THE competitor to overcome. And these opponents are taking market share in the premium segment (as shown by recent studies) while maintaining attractive prices.
The only argument that matters is the price!
For their communication focuses on points of general comparison easy to understand (number of cores, screen size, number of megapixels, etc.) and those that are hidden value a Galaxy S6 facing a Meizu MX5 for example. No, MT6795 is not as good as a Exynos 7420, even if the hearts are the same. No, an AMOLED screen is not as bright a Super AMOLED screen. No, an HD or Full HD screen is not as accurate as Quad HD screen. No, LPDDR3 RAM is not as fast as RAM in LPDDR4, even if there are so many. Etc. Yet that Samsung is receding. Because its Galaxy S6 is sold more expensive. And competitors are, broadly speaking, both the job. And brand appeal then? Even that, it really has value …
The analyst therefore now explains that the excellence of the components are more an argument in the debate. The argument became simply tariff: what discount any promotion, which offered accessories. Difficult to continue creating innovative components when it has no positive impact (even indirectly) on turnover. We then ask ourselves a question: why does he seem to affect Apple? Because the Cupertino company created the smartphone, but still sells more. The answer is simple: because it has no real competitor: it is the only one to create smartphones running iOS, while there are hundreds of brands in the world that develops products with Android as Samsung. And that’s the real problem for Samsung is not having enough hands on the OS to create disruptive and innovative products
Tizen will not save Galaxy <. /> strong>
According to the analyst, the objective of Tizen has always been to offer a way out to Samsung. An output not vis-à-vis the interdependence with Google, but compared to the fierce competition. With Tizen, Samsung hoped thus aping Apple’s strategy which controls every aspect of its iPhone. But it would be too late now. Tizen will not save the Galaxy. And Samsung could not make phones before the end of 2020.
We have two questions about that. First, is it possible? Then, following the assumption of output telephony, what future for Samsung? Many brands (Sony, Haier, Philips, Hisense, etc.) believe that a presence in the smartphone market is now necessary to have visibility to the general public. Samsung could it do without it? And if it disappears from the public, then Samsung would become a technology provider (increasing activity in the group to believe the company’s results)? Answer … in five years!
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