Samsung(and mobile phones generally) are losing out

A report has emerged that Samsung has failed to reach its target for the past FY, to revive phone growth.
I’ve been feeling that since the S4 for Samsung, the One M8 for HTC and Lumia 920 for Microsoft, the devices released after have just been almost the same specs, maybe just an improvement on one or two things here and there. What do you think? And, no, I’m not hating.

Please note, they made a profit, just not what was projected. As a result, will increase capital spending

It’s a tricky path, upgrading specs that people don’t necessary need. OEMs face a challenge of what upgrades to do and what to skip, for example, the HTC One M8 was loved, the next device was what we could call M8s, evolutionary but not revolutionary.

Part of the disadvantage of open source Android, you don’t have a hold over your user base, they can switch anytime they want. Then there is the part of various angles of product value, like it could be cost, it could be hardware, it could be design. Today price is very huge.

AKA The race to the bottom. Samsung’s competitive edge has been undermined by the myriad of low cost ODMs. Without a leap in hardware technology, the high end phones are going to be very similar, but worse their features are replicated very quickly at low priced phones. Rather than try to sustain its market-share, I’d would think Samsung would have give up on the low-end and focus on mid to high-end where the profit margins are better.

Tricky bit here is that they are not Apple, if you recall, HTC did just this and they are on the brink of going under. Reason Samsung just won’t let go of the low end is the numbers in the bottom-line, recent reports show that Samsung is increasing sales, but on low margins. I guess the strategy to separate the offerings can work, i.e. give the high-enders what they want, mid-rangers the best possible, like the J5, J7 and also have something (E series, J1/J2) in the bottom. It may work.