Samsung makes good hardware, sometimes great hardware. The screen on the Galaxy Tab S is exquisite. And yet while it depends on Android, the company is not master of its own destiny in the device market. This makes it vulnerable to low-cost phone and tablet makers at the bottom end and unable to compete with a full user experience at the high end where Apple dominates.
Samsung needs to get its own Tizen OS cooking or resign itself to a Nokia-like future.
Samsung—which rode the Android wave to prominence more than any other handset maker—is now experiencing a squeeze. That is, pressure on the high end (from Apple) and on the low end (currently from China) that already has claimed or threatened the lives of many of its competitors, from Palm and Motorola to BlackBerry and Nokia.
Today in Seoul, Samsung “reported its worst quarterly profit in two years and flagged uncertain earnings prospects for its key handset business,” Reuters’ Se Young Lee reports. Of course, Samsung thinks its new products will fix the situation.
But we’ve seen this story before. This particular chart shows Nokia’s adjusted closing price from the day Apple released the first iPhone, in 2007, to the day in 2013 when Microsoft announced it would acquire Nokia’s struggling handset business.
The smartphone industry is a ruthless one, and Samsung has been one of the few victors in recent…
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