Analyst predicts Samsung may quit smartphone business in five years: Report

Samsung, one of the largest smartphone manufacturing brand among many other things is predicted to be 'going downhill' and might also be out of the smartphone business in the next five years.

Samsung, one of the largest smartphone manufacturing brand among many other things is predicted to be 'going downhill' and might also be out of the smartphone business in the next five years.

According to a report by Techpinions, analyst Ben Bajarin believes that the company is grappling with 'The Innovator’s Dilemma'. This means that successful companies can put too much emphasis on customers' current needs, and fail to adopt new technology or business models that will meet their customers' unstated or future needs. He says, "When you ship the same operating system as your competition you are only as good as their lowest price."

One of the factors responsible for this teardown could be the fact that new Android players are offering affordable devices at par with Samsung. In addition, no amount of innovation in their devices can help as the Android crowd thinks that the smartphone is 'already good enough'. The company's attempt to offer a brand new Tizen OS to the world doesn't look like a complete success wither.

Bajarin writes, "Android’s new premium price point is between $300-$400 and the new mainstream Android smartphone price point is under $300. No other Android OEM, 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."

The most unexpected factor behind Samsung's fallout could be the fact that the arrival of low-cost Android devices was supposed to impact the iPhone but it has hit Samsung instead, mainly because it is offering devices running same operating system that other budget smartphone makers are offering.

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