Around a decade ago, RIM was riding high on the popularity of its Blackberry devices, yet today we see them on the verge of being bought out or going private after a long, slow fall. A similar pattern may be playing out for Apple and within the Android ecosystem of manufacturers, we have witnessed HTC’s fall from the pinnacle. Samsung hopes to avoid a similar fate and is planning a meeting in Seoul on November 6th with investors to explain just how they will accomplish that feat.
Samsung certainly seems to be riding high right now, emerging as the dominate manufacturer of devices running the dominate mobile operating system for smartphones and tablets. However, a chink in the armor may have appeared last quarter when share prices fell and sales of the Samsung Galaxy S 4 were not as strong as expected. Some analysts are worried that as the market for smartphones matures and the devices become even more of a commodity item than they have been, Samsung may have peaked.
In response to these recent developments and concerns, Samsung decided now would be a good time to communicate their longer-term business plans aimed at 2020 according to an unnamed Samsung executive. Samsung will likely focus on the future of smartphones and tablet devices since those divisions drive about two-thirds of their revenue. Other areas like flat-screen televisions, home appliances, medical equipment, and even solar cell production will probably be covered as well along with potential new markets for the electronics giant.
Do you think investors are right to be concerned about Samsung’s position?