Samsung may be the king of the smartphone world but an impending doom is about set in the Samsung land. The company has shipped many smartphones in the last quarter but most of them are of low-end or mid ranged smartphones where the profits aren’t high compared to the high end smartphone segment.
The problem arises when competitors such as xaomi, Huawei and ZTE began to offered products to the consumers that rivals the flagships of Samsung in features and build quality but at a lower price point. Now these phone have been rated as good enough and have the same operating system as the Samsung phones, i.e. android. While the flagships are failing to make any difference, these good enough phones are eating into sales that have been owned by Samsung previously.
Samsung is already losing the high end market to apple and the other segment is facing severe competition from all direction. This has led to a drastic shift in the smartphone scenario. Phone makers such as nokia and Motorola are on the verge of extinction. Other phone makers like blackberry, Sony and HTC are struggling to make a profit and are unlikely to recover.
“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,” he further writes.
The analyst also said that the demise of Samsung smartphone business is a bit far stretched and the Korean company definitely has the ability to innovate the smartphone and recapture the lost sales and profits. But by looking at current sales report, Samsung will be ousted from smartphone world if the situation continues any longer.