Samsung Will be Out of Smartphone Business in Five Years!
Did you think that Samsung was here to stay in the smartphone industry? Well, at least one industry analyst disagrees and goes on to say that on the contrary, they will be out of the business in the next five years!
Industry analyst, Ben Bajarin, extensively commented on what he refers to as The Innovator’s Dilemma. He says that being one of the early innovators in the field, they are bound to be pushed out by their newer competitors will be offering the same products at lower prices.
“They actually knew this was coming,” says Bajarin before adding: “I’ll make a prediction. Samsung will be out of the smartphone business within five years.” While giving reasons for this, he explained further:
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.
Interestingly, Apple will not have the same fate as Samsung, according to Bajarin, because they do not have any competitors making iOS-run smartphones that could be sold at a cheaper price.