Samsung has bigger problems than Apple

Discussion in 'Blazers OT Forum' started by magnifier661, Sep 23, 2014.

  1. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    http://www.cnbc.com/id/102025634?__...ne%7cheadline%7cstory&par=yahoo&doc=102025634

    Samsung has a bigger problem than Apple

    With Apple's iPhone release, pundits have been debating the impact of the new iPhone on Samsung's fortunes. It's an understandable debate as Samsung is the largest and most capable competitor to Apple in terms of capturing market share. But Samsung has a bigger problem that is not easily overcome —

    You might be surprised to learn that Google is a significant problem for Samsung given that Samsung uses the Android operating system in its smart phones.

    But here's the problem for Samsung: Google regularly undercuts Samsung's offerings by selling unlocked devices (without so-called bloatware) often directly to consumers. They just did it again and released the Nexus X — it must be driving Samsung crazy.

    While Samsung attempts to layer on their own operating-system cosmetics through a system called TouchWiz, it's essentially Android. If the Galaxy S5 sells for $700 and a similar product is released by Google for $500 direct to consumers, where is the long-term experience differentiation for Samsung? Hardware certainly can provide a difference as indicated by the larger Note phone, but the core operating system is what you are experiencing on a regular basis as you utilize the device. So, from an operating system perspective, the devices are essentially similar. Except Google's device cost $200 less and you are not on a contract with the particular wireless provider.

    Competitive moats are important for businesses if they wish to maintain margins. A moat is a differentiation that is not easily replicated that allows a company to charge higher prices and maintain market share.

    Apple is a perfect example of a moat company and they use their differentiation to charge higher margins on their products. Samsung is desperately trying to increase the width of the remote but Google isn't making their life any easier as they seek to differentiate into their brand.

    This is exactly why Samsung is attempting to develop their own operating system called Tizen that will supposedly be released as a competitive operating system to Android and iOS. Unfortunately for Samsung, Tizen continues to be delayed and all indications are that the operating system is not ready for prime time. This is understandable given the challenges that companies face in launching new operating systems. It is not easy creating a new ecosystem.

    Remember Symbian? How about BlackBerry? Both of these operating systems struggled in part because of a lack of significant applications available in their respective app stores. The Windows operating system is finally gaining momentum in terms of apps but at one point did not even include Skype which is owned by Microsoft! You can see the problem.

    So, as Samsung struggles to develop their own operating system, they flood the market with new products. Half a dozen watches, two versions of the Samsung Note, two versions of the Galaxy S5, Samsung Alpha, Samsung Galaxy Mini, etc. etc. Throwing hardware to capture market share is a costly strategy but Samsung is forced to do their best to innovate on hardware because they have no operating system differentiation. It's a difficult position to be in when you are chasing a strong competitor in Apple and forced to utilize the same core operating system as a competitor who consistently undercuts you on hardware price (Google).

    Samsung is in a tough position to be sure. Its stock price has lagged while Apple has soared. Now you know why.
     
  2. blue32

    blue32 Who wants a mustache ride?

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    TouchWIZ sucks. Base Android is aight. IOS I still feel is the best one I've used.
    Currently using a SamsungS4 going to IPhone 6+ soon
     
  3. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    Yeah I agree. Most the android friends I have said they would have stayed with apple if they had a bigger screen. Now they have and my friends can't wait to come back to apple!
     
  4. THE HCP

    THE HCP NorthEastPortland'sFinest

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    Mags..... I'm loving the 6+ bro. Already used to the size of it compared to my 5!


    Sent from my Baller-Ass 5.5" iPhone 6+......... FAMS
     
  5. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    Did it take some getting used to?
     
  6. THE HCP

    THE HCP NorthEastPortland'sFinest

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    Ya. But it's just so smooth and rounded. It's weird not having it be so square on the edges. But I was using it all day and then this morning hopped on my 5 and I felt like I could barely read the screen it was so small. And the camera is probably the best part. I take tons of pics all the time and I am going to love this slomo as well!https://vimeo.com/106959355


    Sent from my Baller-Ass 5.5" iPhone 6+......... FAMS
     
  7. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    The imagine stabilization looks like it works well
     
  8. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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    Samsung makes better TVs than Apple.
     
  9. tlongII

    tlongII Legendary Poster

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    That looks awesome. The image stabilization is on the Plus only, correct? Will I be able to do slomo on my 6 when I get it?
     
  10. THE HCP

    THE HCP NorthEastPortland'sFinest

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    It's great!


    Sent from my Baller-Ass 5.5" iPhone 6+......... FAMS
     
  11. THE HCP

    THE HCP NorthEastPortland'sFinest

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    Agreed! Love me their tvs!


    Sent from my Baller-Ass 5.5" iPhone 6+......... FAMS
     
  12. THE HCP

    THE HCP NorthEastPortland'sFinest

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    I'm not sure. But it looks great on my home tv as well using AirPlay.


    Sent from my Baller-Ass 5.5" iPhone 6+......... FAMS
     
  13. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    Samsung is the best TV company out there

    That's their problem. They aren't in control of their OS, which is ruining their cellphone business. If they had a solid OS, they would really give apple a run for their money
     
  14. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    Yes slow mo works for the 6 just as good. The image stabilization is only on the 6+
     
  15. THE HCP

    THE HCP NorthEastPortland'sFinest

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    How crazy would be if one day Samsung is building the Apple TVs?


    Sent from my Baller-Ass 5.5" iPhone 6+......... FAMS
     
  16. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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    I think if Samsung had their own OS, their phones would go the way of blackberry.

    They need some whiz bang user interface features on top of android that makes their phones worth having.

    Apparently, they're getting killed by the guys making cheaper android phones.
     
  17. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    Apple would never do that. They learned their lesson from before. Remember Samsung stealing their design? They used to make iPhones.

    Also, I doubt Samsung would even cooperate either
     
  18. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    That's still a lose lose situation for them.
     
  19. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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    Honestly, Apple is getting its clock cleaned by Roku in the TV business.

    http://blog.roku.com/blog/2014/01/05/introducing-roku-tv/

    Basically Apple TV with more channels, an app store, and bird's eye view of all the programming on all the channels.
     
  20. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    What's funny is Samsung tries so hard to do smear campaigns on apple, yet apple still outsells Samsung smart phones by a large margin in the US
     

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