Cyanogen Mod CEO Thinks Samsung Is The Next Nokia

Discussion in 'Android News' started by DroidModderX, Mar 5, 2015.

  1. DroidModderX

    DroidModderX Super Moderator
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    Here is the thing about Nokia they are still an awesome phone manufacturer, however they really missed the boat on Android focusing instead on their own operating system, and then Windows phone. They are only now starting to put together some Android handsets. They are so far removed from the mind of consumers thanks to the popularity of Android and IOS. Their phones are tanks and have to be some of the most well built durable devices. Just a few years prior to Android they were actually the KING of OEMs. They outsold pretty much every other phone manufacturer even after Android and IOS mainly because they were the largest producer of cheap handsets. They rode that for a while, and now they have lost that market thanks to other OEMs producing super cheap Android devices.

    Cyanogen Mod CEO "Kirt McMaster" seems to think top tier OEMs like Samsung will be tomorrow's next Nokia. He states in a Business Insider interview that Samsung's path is similar to Nokias, and that they will be slaughtered in the next five years. Most of his arguments stem on the fact that Samsung has been beat out by smaller companies like Micromax in emerging markets like India. He reasons that if this happens in too many other markets Samsung may very well be toast in five years.

    Via BusinessInsider
     
  2. Ollie

    Ollie Droid Does

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    Maybe Kirt's company will remain commercially viable long enough to stick around and see it for themselves.

    If Paranoid Android's success is even half of what they have on rooted phones then Cyanogen is done.
     
  3. kodiak799

    kodiak799 Gold Member

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    Interesting, and he makes some good points. However, there's little money to be made in emerging markets. When products become commoditized, as smartphones have or are quickly becoming, then pretty much only the premium brands make money. Sometimes a low-cost producer can emerge to make good money on very low margins and huge volume.

    What happened to Nokia was smartphones eroded the market for flip phones...and when markets shift the premium segment is usually the first to go. Nokia offered no options to retain those customers.

    So it depends on what Cyanogeen means. If he means Samsung will lose its position as the #1 producer of phones, he's probably right. If he means they're profits are going to nose-dive he's probably incorrect. Besides, even if their smartphone division mouths a tailpipe, Samsung has a lot of other businesses. It's like saying Apple was doomed because the Ipod was dying.
     
  4. kinfolk248

    kinfolk248 Active Member

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    But hasnt Cyano been bouncing around in recent years from Oem to Oem...? I mean, I love their work more than the next guy, but lately we've been seeing them get passed around from failed business attempts. But on another note, give them credit for being aggressive and adventurous and saying 'this isnt working thrash it' and steady moving forward and not dwelling the past...
     
  5. thunderbolt_nick

    thunderbolt_nick Thunderbolt Rescue Squad
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    That tells you a lot about the 'direction' or 'statement' of this article. BI, my opinion and many others in the tech industry, has a heavy bias against anything Google-related so any fuel to their Anti-Google fire is helpful. So, of course, they are going to try and use the 'well your guys say it's bad so it must be bad' argument over and over and over...Enough's enough. What happened to good journalism?

    Anyways, now that I got that out of the way I'll get back on topic. What he says is basically, "I think Sammy will crash and burn in the next five years because they aren't hitting emerging markets." Forget the Nokia reference as it is entirely irrelevant to the point he's trying to make, which is entirely unfounded. Nokia didn't gain traction in the US and then tried to ride on Microsoft's coattails. @DroidModderX is right though. The onslaught of iOS and Android (which Sammy is ahead in the market for) did contribute to their demise. That is why they 'fizzled' out so-to-speak. Not because they didn't hit an 'emerging market.' Plus, Nokia never had a 'boom' in sales to try and keep them afloat for more innovative ventures although the still tried with those uber camera phones which people still love. Samsung has and they can also ride that out as far as I can see. After all they had successful phone launches very frequently. Also, Samsung sells more than just phones and has their hands in a lot of consumer electronics. Nokia tries staying afoot through their networking products (as far as I'm aware of).

    So on to the real question he is trying to raise, because a company can't hit an emerging market or mutliple markets, it won't be successful? I don't remember Apple and the iPhone ever trying to 'hit an emerging market' and they were pretty successful and even made markets of their own.I don't remember Google throwing the ad business in say....Brazil and gaining huge amount of revenue that way. In fact, more people adopted them in a sense. Seems this is one of those, "I'm jealous of what someone else has" kind of attack. Although...Cyano is doing well. Not amazing, but pretty well. Who cares what Sammy is doing? I don't even like their phones but I wouldn't say they are done after 5 years unless something drastic happens. I have a question for everyone too that may seem very opinionated but it has been kind of bugging me for a bit. Is it me or is independent tech companies starting to become the people who are arrogant even though they usually end up selling off their companies?
     
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  6. Vepaot

    Vepaot Silver Member

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    He might be right. I'd reckon in the next couple of years Samsung will start pushing Tizen out pretty heavily on their devices. They soaked up the markets...especially here in the US. They played to their strengths and made fans out of both the basic consumer that buys whatever they see on the TV the most, as well as power users that like the hardware that Sammy rocks on their devices. Now that they've caught all these people in their web, they can flip that switch from Android to Tizen. Though I've got a funny feeling it'll blow up in their faces when it happens.
     
  7. jroc

    jroc Silver Member

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    Exactly. Last I checked Samsung were more than just smartphone makers...most of the components inside and outside of some phones are Samsung products. Wont even get started on how they have their hands in so many different markets....

    Nokia was mainly a phone maker. RIM was too (he mentions them too)

    Like Sony is more than games, game console makers. And until the PS4 that wasnt even a money maker for them.

    Maybe he should clarify and and say in the smartphone business.

    After skimming the article....maybe he should worry about his company even getting close to Samsung's level first....not even their overall business level, just their phone business level.
     
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  8. cr6

    cr6 Super Moderator
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    Obviously this is but one man's "opinion", but I simply don't see it. Samsung will continue to thrive and push the boundaries the way they always have. Will they screw up along the way or have a bad year or two? Absolutely. EVERY company does. As long as they can continue to learn from their mistakes and give the people what they want, they'll continue to be one of the top manufacturers.
    To even put them in the same class as Nokia is ludicrous, and laughable really, but that's just me.


    S5 tap'n
     
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  9. cerisecons

    cerisecons Gold Member

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    They'd be on par with Nokia if they only pushed their own IO, but as they work in all facets except IOS, they will he able to adapt and change.
    I have a great Nokia phone for travel in the GSM areas, they really made a good product back then. Why they only focused on Windows phones for so long doesn't make sense.
    (I think my S5 will work now in GSM with another card though)
     
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