Cyanogen CEO says Samsung will be “slaughtered” in Next 5 Years
Cyanogen CEO says Samsung will be “slaughtered” in Next 5 Years
2015-03-11
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so you guys remember this guy Curt
McMaster he's the CEO of cyanogen and in
January he went so far as to say that he
wanted to take Android from Google but
that wasn't enough because just last
week he claimed that Samsung is going to
be slaughtered in the next five years
let's talk about that in an interview
with Business Insider McMaster comments
about how low-budget device
manufacturers like Xiaomi and Micromax
will diminish Tier one companies market
share such as Samsung's over the next
three to five years he even goes as far
to say and I quote the Tier one OMS like
Samsung are going to be the next
generations Nokia's in the next five
years they're going to get slaughtered
we think long-term Apple itself will
have problems because they're just not
good at competing at the low-end Oh
let's unpack that for a moment Apple
doesn't want to compete at the low end
they don't have to compete at the low
end they spent three decades and
billions of dollars building a brand
that is premium I mean I can't even buy
a power cord for my macbook pro for less
than 150 bucks because they're a premium
quality brand at least that's what they
want consumers to believe so if they did
want to compete at the low end with the
micro maxes and shammies of the world
they would want to create a totally new
brand not under the Apple or iPhone
brand but something completely different
that's been done very successfully in
the car market for example Toyota wanted
to compete with mercedes-benz and BMW
but they didn't create a premium high
quality Toyota Corolla
no they created the Lexus brand and
we're very very successful at it now
when it comes to Samsung well that's a
totally different story because
Samsung's trying to be all things to all
people I mean what does samsung really
stand for
they have flagship power phones
entry-level phones a mix of mid tier
phones and devices you can't be all
things to all people because you're not
top
mind in anyone market our segment and so
that leaves them vulnerable to companies
that do want to become first on the mind
in one particular segment
so if Xiaomi for example wants to become
the best entry-level brand out there
like for example what's the best
entry-level you know
affordable cheap super market out there
its Walmart everyone knows that I mean
everyone on the planet knows that but is
what is Samsung known for we don't
really know because they throw that
kitchen sink at us all the time now
imagine for a moment if a manufacturer
like oneplus came out with an intense
campaign that said hey we're the brand
for flagship power without the flagship
price not a bad slogan and it's not like
we haven't seen a reversal of fortune in
a very short period of time McMaster
points this out it could get pretty bad
pretty damn quick this is often the case
look at what happened to Research In
Motion look at what happened to Nokia
last summer Micromax surpassed samsung
as the dominant feature phone player in
India we're talking literally in eight
months this occurred this is just one
market will see this happen
all over the world cyanogen has worked
hard over the past few years to break
into the mainstream smartphone business
by offering smooth software that is able
to run on budget-friendly hardware and
because of signage and success with the
oneplus one McMasters opinions on a
global market share are certainly worth
something though the message may come
off as a bit strong it does make sense
smaller OEMs around the world can offer
extremely budget-friendly hardware in
areas where most people can afford a
Samsung or Apple made device now another
recent win for cyanogen is that they
created a new hardware partnership with
Qualcomm the partnership with Qualcomm
means that future Snapdragon powered
Qualcomm reference devices or QR DS will
ship to manufacturers running sign
engines operating system this deal
covers the Snapdragon 200 406 series QR
DS which allow manufacturers to quickly
develop their own hardware or just place
their own branding on the QR D and then
ship it to the consumer you see if sign
engine can
continue to forge these hardware
partnerships this is one of the best
indications of sign engines future
success
you see signage in has to create their
own app store their own version of Gmail
their own version of Google now for
example to be successful and to do that
they need a lot of users and to get a
lot of users they're going to need
hardware partnerships and who is in a
better position to do that then the
Chinese manufacturers there's one caveat
one worry that I have and that's that
cyanogen will have to get into bed with
the Chinese government why well they're
going to have to create these
partnerships with Xiaomi one plus one
all these companies that are you know
Chinese sponsored companies and China
has had a tumultuous relationship with
Google in the past
Google refused to get into that
relationship with the Chinese government
sign engine might have to to make that
work we'll have to wait and see I wonder
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army my name is Jase I'd love to connect
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I did something a little new today I
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it's a livestream sharing service that's
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I'm told that they will have an Android
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people watching and they can comment
like give comments or questions live
right now they're like sitting right
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going to experiment with it they've
actually been watching me the entire
shoot I've been doing this I don't know
all night and they've been here with me
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when I start live streaming it sends out
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respond it automatically tweets on both
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see it and it's just a way to better
engage at live like real time so if you
guys like that I might continue it if
not then you know it's just an
experiment who knows three months from
now meerkat may go the way of giggle
we'll see don't forget about my brothers
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