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What do you see from Samsung's declining smartphone sales? The No.1 smartphone maker is losing its market share to small competitors. Why? As one Huawei executive pointed out, Samsung smartphones don't have any competitive advantages over its rivals. When anyone can make a smartphone, smartphone basically becomes a commodity. Unless the smartphone maker offers something unique, it doesn't have too much added value to the product. Look at the PC industry, HP, Toshiba and Dell don't earn as much as Intel and Microsoft from the sale of a PC because they don't have much added value to differentiate the PC they make. With the maturity of the technology, the smartphone industry will become more and more like the PC industry. Google is the one who offers the most added value, just like Microsoft in PC industry. Qualcomm and few other communication chipset companies will become the new Intel. Hundreds of smartphone makers may go through several rounds of consolidations. In the end, even the surviving smartphone makers will be like HP nowadays.

But do you notice that Apple has always been an outliner in both the PC and smartphone industries? No matter how much you hate Apple's proprietary OS, it is the way Apple differentiate its products. Because Apple always uses its own OS, its products won't get commoditized.

However, BlackBerry also tried to differentiate itself by insisting in using its own OS. But it failed because its innovation didn't keep up with the trend. Samsung may have made a better decision to ride the Android train at the time. But if it didn't innovate to differentiate itself from its rivals, it will eventually fail.

There is only one way for technology companies to survive - keep innovating.
Chao-Kai Huang
Blackberry O/S though is proprietary does not keep up with the trend unfortunately.
  • August 28, 2014
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Charles Kyle
not trying to bash or anything samsung has never been innovative at all but a good follower or copycat for years.
  • August 28, 2014
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Jack Nelon
Samsung seems to see this problem. Thus it's working on Tizen. However, Tizen has been delayed for three times. Will people still buy Samsung phones if it isn't Andriod?
  • September 19, 2014
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