Samsung could give up the development of smartphones in the next 5 years, or at least that's what the analysts who monitor the financial evolution of the well-known company from South Korea claim.
The rationale behind this prediction made by the analyst Ben bajarin there is a theory called the Innovator's Dilemma. According to this theory, a smartphone manufacturer cannot face the big competition created by smaller manufacturers who sell cheaper smartphones with the functions thought by the innovator.
According to this analyst, when several smartphone manufacturers deliver products with the same operating system, the winner is the one who sells the products at the lowest price because each terminal has exactly the same functions, the innovator would no longer promote its own as being exclusive.
According to this analyst, at the moment the small terminal manufacturers Android they sell devices that have the same functionality as the one offered by the Samsung company, only that they do it at much lower prices, affecting the sales of the Korean company, something seen in the financial results of the last fiscal quarters.
If you are not familiar with the Innovator's Dilemma, it is that, as a market matures, the early innovators get disrupted by competitors who come into their space with lower priced products, similar specs (the specs that matter), and eat into the market share of the early innovator in the category. 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. Android devices in the $200-$400 range are good enough for the masses leaving Samsung's $600 devices and above stranded on an island.
Because of this increasing competition, the analyst believes that Samsung will leave the smartphone market in a maximum of 5 years, something that probably would not be so impossible to believe considering that, unfortunately, Koreans have big problems with profit in this segment.
If you were to ask me, I would say that Samsung will continue to copy Apple in the coming years in exactly the same way as before, no matter how many Chinese manufacturers will copy their own products instead.
