http://www.bloomberg.com/news/2014-11-16/samsung-hunts-next-hit-with-internet-push-as-phones-fade.html
And so it begins. Samsung can't continue to dump money into low volume or downright experimental products forever. I correctly predicted that at some point, we'd see movement back to high volume products with low variation. I didn't think we'd start to see it a week later! If you ever heard the phrase "leveraging your fixed costs", that's what Samsung is doing. The board will give the management team a chance to correct their income statement shortfalls before it makes any more...severe...measures.
It appears that in the right situation, Samsung is ok with throwing everything at the wall and seeing what sticks. That's is what they are doing with "The Internet of Things". However, in the connected home paradigm, the battle is still up for grabs so the lure of potential future profits still justifies spending money on crazy product ideas. But now that it appears that the battle in the smartphone arena has a clear victor, Apple, it's time to pivot back to the tried and true formula of spreading your costs over many units.
And so it begins. Samsung can't continue to dump money into low volume or downright experimental products forever. I correctly predicted that at some point, we'd see movement back to high volume products with low variation. I didn't think we'd start to see it a week later! If you ever heard the phrase "leveraging your fixed costs", that's what Samsung is doing. The board will give the management team a chance to correct their income statement shortfalls before it makes any more...severe...measures.
It appears that in the right situation, Samsung is ok with throwing everything at the wall and seeing what sticks. That's is what they are doing with "The Internet of Things". However, in the connected home paradigm, the battle is still up for grabs so the lure of potential future profits still justifies spending money on crazy product ideas. But now that it appears that the battle in the smartphone arena has a clear victor, Apple, it's time to pivot back to the tried and true formula of spreading your costs over many units.
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