Will Android smartphone giant Samsung formally exit the smartphone market? According to analysts, Samsung could leave a competitive market that they arguably created.
There's no question that competition and development in the smartphone industry is moving at breakneck speeds. However, the insane growth could have caused adverse impact. In less than a decade, major companies like BlackBerry and Nokia have been pushed out of the industry by the likes of Apple and Samsung. Meanwhile, new players like HuaWei, Xiaomi, and OnePlus are entering global markets for a piece of the pie.
Creative Strategies principle analyst Ben Bajarin predicts that Samsung could exit the smartphone sector in as little as five years. The motivation for the exit? Bajarin believes Samsung could suffer from "The Innovator's Dilemma," which essentially means that Samsung is on the verge of running out of ideas to keep its products attractive. In fact, as competitors bring more affordable devices with comparable features to the market, Bajarin is concerned that Samsung could find themselves in a position where "absolutely nothing" will save them from the fate BlackBerry and Nokia suffered.
"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," said Bajarin in his op-ed. "Android devices in the $200-$400 range are good enough for the masses leaving Samsung's $600 devices and above stranded on an island.
"Many billions of people will be included in the benefits of the online economy and financial inclusion thanks to Android. Android devices will be extremely capable and with very good technology in the premium $300-$400 price range. But the innovator's dilemma will make it very tough to commercialise true premium innovation in Android at any scale," Bajarin added.
Time will tell whether the future will unfold as Bajarin predicted. Now it's your turn: Do you think Bajarin's prediction is true? What do you think Samsung could do to steer its fate? Let us know in the comment section below!
