Could Samsung’s smartphone days really be numbered? Analyst suggests company may leave market

Samsung may have itself a serious problem on its hands, one that could threaten to see the manufacturer lose even further smartphone market share. While the company just posted some recent growth for its handset sales, a shifting emphasis towards lower-cost models isn’t doing much to help turn those sales into profits. As a result, at least one analyst is projecting that the end of the line could be in sight for the company’s interest in the smartphone game, and that growing demand for bargain-basement phones could soon render Samsung unwilling to keep sales going.

The crux of the theory is that Samsung’s already losing sales to more budget-oriented smartphone manufacturers, and with manufacturer-specific innovation becoming more difficult to find on Android (a platform that generally offers OEMs a level playing field), Samsung doesn’t have a great shot at turning things around and convincing shoppers to pay more for phones like its Galaxy S and Note models.

samsung-galaxy-a-partyThings could get so bad, according to one source, that Samsung may decide within the next five years to pack things up and leave fighting over low-margin budget-phone sales to other manufacturers.

Considering Samsung’s current stature, that’s a hard theory to accept, but it’s also impossible to deny the downward trend the company’s market share has been seeing: already flirting with 20 percent (down from north of 30 a couple years earlier), could a dip into the teens really be that far away? And at what point would margins be so low as to convince the company to focus its resources on more profitable endeavors?

Even if this notion does end up having some truth to it (and that very much remains to be seen), it’s still likely to be years before Samsung makes a decision one way or the other. And that means we’ve still got new Samsung smartphones to look forward to for a long time to come.

Source: Techpinions
Via: SamMobile

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About The Author
Stephen Schenck
Stephen has been writing about electronics since 2008, which only serves to frustrate him that he waited so long to combine his love of gadgets and his degree in writing. In his spare time, he collects console and arcade game hardware, is a motorcycle enthusiast, and enjoys trapping blue crabs. Stephen's first mobile device was a 624 MHz Dell Axim X30, which he's convinced is still a viable platform. Stephen longs for a market where phones are sold independently of service, and bandwidth is cheap and plentiful; he's not holding his breath. In the meantime, he devours smartphone news and tries to sort out the juicy bits Read more about Stephen Schenck!