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Samsung to Leave Smartphone Industry in Five Years

News by Josh Dasey on Tuesday November 03, 2015.

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Sometimes analysts get things right, other times they get them wrong. It is the nature of the beast, but sometimes analysts go completely crazy and offer us some market information that seems entirely invented. We will let you decide which category the following tidbit regarding Samsung falls into.

Ben Bajarin says that Samsung will depart the smartphone industry within the next five years, citing the innovators dilemma, where a company that blazed a trail in the market is slowly eaten into by more affordable rivals. It is hard to see the most dominant (by a large distance) smartphone brand being taken out by rivals that quickly, but there has been some evidence that Samsung's sales are being hit by companies such as Xiaomi.

An obvious way to retort this point of view is to say that Apple has been an early market innovator and it is not in danger of slipping out of the market in five years. Bajarin says that Apple is unique because it is the only manufacturer on its platform, so does not have to contend with more affordable rivals.

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.

We are calling BS on this theory by the way, what do you think?

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About the author

Josh Dasey
Josh is our European editor, tackling news events, reviews, and new items from his UK home. As a former HTC marketing employee, Josh is close to the industry and bring his experience to MobileBurn.

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