Ben Bajarin writing for Techpinions.com is predicting that Samsung will be out of the mobile phone business in five years.
Samsung will be out of the smartphone business in five years.
It's hard to argue with his reasoning since Samsung has shown absolutely no ability to reverse their sales decline. However, I don't think it's so cut-and-dry that they either prosper or exit completely.
If I was advising Samsung I'd counsel them to adapt to market conditions. That would entail working backwards from their expected average selling price and desired profit margins to see what they can afford to produce. You'd think they would have done this by now but they have stubbornly refused to do so. Their current strategic plan of putting in high-cost features to attract new buyers and grow market share isn't working. If it was, they wouldn't need to spend so much in advertising in conjunction with cutting prices to unload their inventory.
Samsung will be out of the smartphone business in five years.
It's hard to argue with his reasoning since Samsung has shown absolutely no ability to reverse their sales decline. However, I don't think it's so cut-and-dry that they either prosper or exit completely.
If I was advising Samsung I'd counsel them to adapt to market conditions. That would entail working backwards from their expected average selling price and desired profit margins to see what they can afford to produce. You'd think they would have done this by now but they have stubbornly refused to do so. Their current strategic plan of putting in high-cost features to attract new buyers and grow market share isn't working. If it was, they wouldn't need to spend so much in advertising in conjunction with cutting prices to unload their inventory.
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