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Will Samsung Stop Making Smartphones in 5 Years?

2015-11-07
this episode is brought to you by domain.com meet ben baharon he's a prominent research analyst with creative strategies a research firm that specializes in this sort of thing and Ben recently claimed and I quote that Samsung will be out of the smartphone business in the next five years let's vet that now specifically here is Ben's argument androids new premium price point is between three and four hundred bucks and the new mainstream Android smartphone price point is under $300 no other Android OAM Samsung included 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 Ben went on to also talk about the innovators dilemma and how it applies to Samsung as an Android market leader the innovators dilemma it is that as the market matures the early innovators get disrupted by competitors who come into their space with lower priced products similar specs the specs that matter and eat into the market share of the early innovator in that category and yes obviously the prices of our smartphones are going down and it will continue to go down but how far will we ever see a 200-dollar 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 and here's why both Apple and Samsung have proven that there will always be 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 and secondly baharon mentions how the market has changed recently but does not appreciate history going farther back think about 1998 or even 2004 where mobile phones the sensational TechFest they are today no and yet Samsung along with countless other OEMs made and continue to make devices even back then and for all the talk about hallway and Xiaomi and other Chinese manufacturers taking market share from Samsung which they are doing Sims ten 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 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 guess here but I 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 this is my new friend Tobias I sent him a t-shirt in Spain and I'll send you a t-shirt too if you can one come up with an Android related domain name that has not been used makes me smile and uses a.com now why is that because no domain name extension tells your story with the same degree of trust as a dot-com or dotnet domain name.com and dotnet domain name extensions and jet credibility into your online presence save 15% on domain names and web hosting when you use our coupon code Android at domain.com check out when you think domain names think domain.com thanks for watching android army my name is Jase love to connect with you right here on Google+ and Twitter he also don't want to forget about my brothers and sister and Android we're working super hard to your source for all things Android
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