While we can’t say that we really are that surprised, in what may be a very striking prediction, an ace analyst claimed that the world famous smartphone maker Samsung would soon be out of the industry.
According to sources, renowned analyst Ben Bajarin claims that Samsung, which is currently the one of the world’s largest smartphone manufacturer, would be out of business in five years’ time. The analyst claims that the company would face what is called ‘The Innovator’s Dilemma’, wherein an early innovator is faced with rivals making much cheaper products with the same features (and to some extent, this certainly is true).
The analyst points out that the price plays a very important factor for the consumers and it’s the lowest price that makes the difference. Further, once the company stops focusing on the premium innovations that got it to the top, in an attempt to focus on the competition, the rival’s products which are just as good, start selling faster.
Coming to Samsung, Ben Bajarin claims that new Android manufacturers (especially in Asia and China to be specific), are offering handsets just like that of Samsung but at a much more affordable price. Unfortunately, there is apparently nothing that Samsung can do to change the situation. The company is said to be fully aware of the situation, which is why they developed the Tizen OS.
Speaking about the incoming crisis for Samsung, Ben Bajarin, said, “If you are not familiar with the Innovator’s Dilemma, it is that, as a 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 the category. Once the market embraces good enough products, the innovator can no longer push premium innovations as their value is diminished once a good enough mentality sets in. Android devices in the $200-$400 range are good enough for the masses leaving Samsung’s $600 devices and above stranded on an island.”
