Source: The Wall Street Journal
quote: And BTW... YOU are the one person here that said Tizen was a sign of the end of Android. Like I said above, you wished it to be true, but it wont happen.
quote: Samsung had built up a healthy high-end business by:Being available on nearly every carrierPioneering the large-screen segmentProducing hardware that was meaningfully superior to low-end offeringsAll three of these factors either have or are in the process of disappearing:After a two-year lull, Apple has greatly expanded iPhone availability worldwideAs noted above, the gap between low and high-end hardware is disappearingMultiple manufacturers have moved into the large-screen segment, with the iPhone coming soonIn China Samsung has another problem: their brand and distribution channel, which they have spent billions building, is no match for Xiaomi’s star power which lets the startup sell phones at cost without any additional marketing or channel expenses. It’s not helpful to (rightfully) say this issue is primarily limited to China (I’m more skeptical of Xiaomi’s prospects elsewhere, but bullish on Lenovo) because the Chinese market is the largest market in the world.Ultimately, though, Samsung’s fundamental problem is that they have no software-based differentiation, which means in the long run all they can do is compete on price. Perhaps they should ask HP or Dell how that goes.In fact, it turns out that smartphones really are just like PCs: it’s the hardware maker with its own operating system that is dominating profits, while everyone else eats themselves alive to the benefit of their software master.
quote: I think the writers I linked to make a good case for being more pessimistic about Samsung's outlook than Apple's but nobody knows for certain.