For two to three years the technorati elite, media pundits, and market prognosticators had predicted Apple’s downfall at the hands of industry leader Samsung, an awakened Microsoft, a savvier-than-thou Amazon, a resurgent BlackBerry, or any of the Chinese Knock-off Kings including Lenovo and Xiaomi. Well, here we are a few years later, Samsung is suffering, Microsoft has yet to achieve liftoff, Amazon’s Fire Phone is in the middle of a fire sale, BlackBerry’s latest is a laughing stock, and all the Chinese knock-off makers have succeeded in doing is knocking the profits out of the only truly profitable Android device maker, Samsung.
The latest news says a shakeup is underway at Samsung as the Korean conglomerate’s family honchoes do not like failure, public embarrassment, falling profits, falling stock price, or anything that brings shame to the company (lying, cheating, and stealing are OK) Apple’s iPhone outselling Samsung’s new Galaxy Note 4 in South Korea was the last straw. Now it’s time for heads to roll.
What about all those who predicted Apple’s failure while Samsung conquered the smartphone and tablet industry? When do their heads roll?
Is it possible that none of the technorati elite, media pundits, and market prognosticators could not see on the horizon Samsung’s imminent failure? If not, why not?
Here’s how it played out. Samsung stuck with Android OS and decided to play both ends against the middle, with Samsung being in the middle, trying to be like Apple on the premium end of the scale. That resulted in a big fail. Why? Differentiation. Samsung is a purveyor of plastic gadgets which, despite attempts to put lipstick on the pig, still run the copy-cat mobile operating system, Android.
At the other end of the scale Xiaomi and a host of Chinese knock-off makers produced Galaxy and iPhone lookalikes running Android and Google Play– working just like Samsung but for much less money. Samsung was squeezed in the middle; not gaining premium margins competing against Apple and iOS at the high end, and losing sales and margins to cheaper-made Chinese phones at the low end.
BusinessInsider, a charter member of the Apple Hurt Parade, the same digital rag which predicted Apple’s imminent failure, has seen the light and now spends time pouring flames over the open wounds of Samsung’s failed strategy to topple Apple.
Why didn’t anybody see this coming?
Meanwhile, Apple, the company every technorati elite, media pundit, and market prognosticator loved to hate just a year ago, suddenly have figured out Apple’s strategy of building a premium and highly differentiated product actually makes sense. Hey, the Mac is the most profitable PC line on planet earth, yet the average model costs two to three times the average PC running Windows OS, and Macs are selling at record levels.
My question is this. “Why should anyone believe the likes of BusinessInsider and others who now say Samsung is doomed?” Other than Apple, name another smartphone and tablet maker with more profits.