Samsung going down Nokia-Blackberry road

Written by The Financial Express | New Delhi | Updated: Aug 11 2014, 15:38pm hrs
Samsung Galaxy Tab SThere is no doubt that Samsung is feeling the heat in many markets from companies that offer smartphones with high specifications at lower prices.
It has happened to almost all big names in consumer electronics and now it seems Samsung Electronics too is headed towards the trough of its rather long growth curve.

In a recent blogpost, backed by numbers, Jan Dawson of Jackdaw Research Analysis says Samsungs growth has slowed dramatically over the last few quarters and dipped into the red in the last two.

Add to this the signs emerging out of India and China, where local players have pushed the Korean tech leviathan to the second spot in either overall or smartphone sales. This is where it comes to the question no one wants to askhas Samsung peaked

There is no doubt that Samsung is feeling the heat in many markets from companies that offer smartphones with high specifications at lower prices.

The barrage of cheap, and for a change good, smartphones has given buyers new options. The reluctance to change its designs and push ahead with innovation has also not helped Samsungs case, especially at a time when consumers are spoilt for choice and are more demanding than ever before.

Apple is also charging a premium for its devices and has not really pushed the envelope as far as innovation is concerned, but it has been guarded to an extent by the lack of choice with the products it offers.

Samsung still lords over the smartphone segment in a lot of markets. And there are already signs that it is trying to woo the value-conscious customers.

With the marketing might which only it can muster, the company should be able to arrest the erosion in a quarter or two and even come out on top. We must also not forget that Samsung is not just a smartphone or IT business and has the muscle and pockets to weather a small storm like this.

The only worrying factor for Samsung will be the fate of Nokia and BlackBerry which it pushed down to languish among the long list of also-rans.

These two were also giants in the mobile phone space, but have not been able to make a dramatic comeback once their growth curves started slumping. Let us hope history is kinder to Samsung.