Larry Magid: Samsung May See Tough Times Ahead In Smartphone Market
SAN FRANCISCO (KCBS)— A new report by Fitch Ratings predicts that Samsung may have a tough time ahead when it comes to the smartphone market. The credit rating agency expects Samsung's market share to drop from 31 percent to 25 percent in 2015.
While that doesn't seem to be much to be ashamed of with a market share this large, it will be a big blow to the South Korean electronics company that is facing growing competition. And it's coming from all directions, most notably from Apple's forthcoming iPhone 6, which is likely to be out in September.
This only puts pressure on Samsung's high-end phones, especially the Galaxy s5. With Microsoft, who now owns Nokia, they need to look out for their latest announcement of a $25 phone. I don't know if it's a smartphone, but there are still a billion people left in the developing world who don't have phones. Samsung has been strong in that market, but now Nokia wants a piece.
Samsung May See Tough Times Ahead In Smartphone Market
There's also companies like Motorola who are currently owned by Google, but are soon to be owned by Lenovo, the PC maker from China. They're coming out with some great phones in the $100 to $200 price range. I should mention these are actual prices of the phone itself, not the subsidized price you get with your carrier's contract.
My best advice for them is to not be so greedy when it comes to accepting the predicted 25 percent market share and if they want to turn it around, maybe they can lower some of their costs in order to make the money again.
