The Claim: Samsung Will Leave the Smartphone Business in 5 Years
This episode is brought to you by domain.com. Meet Ben Baharin, a prominent research analyst with Creative Strategies, a research firm that specializes in this sort of thing. Recently, Ben claimed that Samsung will be out of the smartphone business in the next 5 years.
According to Ben's argument, Android's new premium price point is between $300 and $400, while the new mainstream Android smartphone price point is under $300. No other Android OEM, including Samsung, will sell in volume anything above those prices at those prices. Cutting Edge Innovation will be void, meaning the gap between iPhones and Android will grow.
The Innovator's Dilemma
Ben went on to talk about the innovator's dilemma and how it applies to Samsung as an Android market leader. The innovator's dilemma is that as the market matures, the early adopters get disrupted by competitors who come into their space with lower PRC products, similar specs, and eat into the market share of the early innovator in that category.
Yes, obviously, the prices of our smartphones are going down, and they will continue to go down. However, how far will we ever see a $200 flagship phone? That might be a bit of a stretch, but I'd say 250-300 no problem. But as far as Samsung completely leaving the smartphone industry, no, here's why.
There is always a sizable population of the market that wants truly premium products and are willing to pay for it. I'm one of those people; I like to buy the very best, and I'm willing to save up to do it. Secondly, Baharin mentions how the market has changed recently but does not appreciate history going farther back. Think about 1998 or even 2004 when mobile phones were The Sensational Tech vest they are today. No and yet Samsung, along with countless other OEMs, made and continue to make devices even back then.
For all the talk about Huawei and Shaii and other Chinese manufacturers taking market share from Samsung, which they are doing, Samsung can lower their prices, they can compete on the entry and mid-level tiers but they aren't at least not at scale. They want to hold on to that premium market, and I don't blame them for doing so.
Samsung's Vision for the Future
Now, I'm not saying that Samsung is not in serious trouble because they are, but Samsung knows it, and at least on paper, they seem to have a vision of how to move forward. Samsung CEO said this in order to overcome the current crisis: "we need an extraordinary transition if we resist changes then we won't survive, we must become a leader in the new era with a new start."
Educated Guests Here
There are educated guests here who would predict that Samsung will continue to give us a bevy of mid-tier options and still have a death grip on the true premium flagship. What do you guys think? Let me know in the comments below.
A New Friend Tobias
This is my new friend Tobias; I sent him a t-shirt in Spain, and I'll send you one too if you can come up with an Android-related domain name that has not been used, makes me smile, and uses .com. Why does this matter? Because no domain name extension tells your story with the same degree of trust as .org or .net; domain name extensions inject credibility into your online presence.
Save 15% on Domain Names and Web Hosting
Check out when you think about domain names at think.com and use our coupon code Android to save 15% on domain names and web hosting. Thanks for watching, and my name is Jace, love connecting with you right here on Google+ and Twitter. Don't forget about my brothers and sister in Android; we're working super hard to be your source for all things Android.
Domain Names
A Domain Name: A Key to Online Presence
When it comes to online presence, a domain name is crucial. It tells visitors exactly what your site is about and gives them confidence in your brand. Without a domain name, you risk appearing unprofessional and losing potential customers. When choosing a domain name, consider the following tips:
* Keep it short and memorable.
* Make sure it's easy to spell.
* Use relevant keywords if possible.
The Benefits of Using .com
Using .com as your domain extension is essential for online business. It tells visitors that you're serious about your business and that you have a physical presence. Unlike other extensions, such as .net or .org, .com is widely recognized and trusted. When choosing a domain name, consider using .com to ensure your site appears professional.
The Importance of Domain Name Extensions
No domain name extension tells your story with the same degree of trust as .org or .net. These extensions inject credibility into your online presence, making it more likely that visitors will engage with your site. When choosing a domain name, consider using an extension like .com or .org to give your business a professional edge.
Conclusion
In conclusion, Samsung's claim to leave the smartphone business in 5 years is just that – a claim. The market has changed significantly since 1998 and 2004, but Samsung has continued to adapt and evolve. While there may be a gap between iPhones and Android, there will always be consumers willing to pay for premium products. With its vision for the future, Samsung seems determined to stay ahead of the competition.