Samsung’s mobile business has had it rough in recent times. It has had to face Apple eating up all the profits from the high-end on one side and upcoming OEMs in emerging markets eating up the bottom of the pyramid on the other. It is a colossal battle on two fronts, and it is already costing Samsung quite a bit.
Cyanogen’s CEO, Kirt McMaster, has said in an interview that Samsung will go the way pf Nokia in the next five years. He insists that even Apple too will soon run into problems. Here is a quote from the Business Insider:
The tier one OEMs like Samsung are going to be the next generation Nokias in the next five years. They’re going to be slaughtered. We think long term Apple itself will have problems because they’re just not good at competing at the low end.
When asked in response to the above statement, So you think Samsung will be toast in five years?, he responded:
It could get pretty bad pretty damn quick. This is often the case. Look what happened to Research In Motion (RIM). Look what happened to Nokia. Last summer Micromax surpassed Samsung as the dominant feature phone player in India. We’re talking literally in eight months this occurred.
This is pretty much what I said in July 2013 about the battle for mobile being determined at the bottom of the pyramid.
A few years back when Nokia fell from the top of the smartphone pack, I pointed out that it was a part of a natural cycle. No-one stays at the top forever. I mentioned then that both Samsung and Apple would one day be pushed down from their top spots. And one day, their successors will be too. I don’t have a time frame though. I have no crystal ball, so I will just mark down Kirk’s predicted time frame and see how it goes.
Read the full Business Insider interview here. What do you think?