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Why Samsung and Amazon Stumbled

Jeff Bezos's stocks took a tumble too.

Stephen Green


July 30, 2014 - 11:00 am
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The South Korean electronics giant had planned to debut its new smartphone running the company’s home-brewed Tizen operating system in Russia, but the debut has been postponed indefinitely:

It didn’t give any details about what precisely needed to be defined or how long the delay would be, but the reference to the ‘Tizen ecosystem’ hinted at fresh concerns over the availability of apps and related services that are needed to make the product sell.

Such concerns were, in part, behind the decisions of network operators NTT DoCoMo and France’s Orange SA to pull out of promotional campaigns launching the Tizen phone.

Samsung has already launched Tizen-driven smartwatches and cameras, but is desperate to extend it to smartphones in order to gain more control over the end-user experience in its most important products. Its license agreement with Google GOOG restricts its freedom to make more than cosmetic changes to the Android system.

Copying somebody else’s hardware to run somebody else’s software and buying up marketshare is easy. Creating your own ecosystem to protect yourself from even cheaper copycats and bossy software providers is hard.

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All Comments   (3)
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Amazon has outgrown its original concept, i.e., a modern version of a catalog retailer. They are now embarking on programs like self delivery that will create large fixed brick and mortar costs and reduce their natuarl advantages.

Don't be so quick to discount Samsung's attempts at growing their own enviroment. They will eventually get it right, however as Blackberry and Apple are discovering being responsible for the total operating environment diverts resources away from produuct development. I know Apple fanboys like you will never consider buying a superior non Apple product but the market doesn't work that way. Apple has bigger long term problems than Samsung does.
30 weeks ago
30 weeks ago Link To Comment
BlackBerry fell because they clung too long to an outdated model, then failed to delivery fresh and marketable new products. Their model was outdated by... Apple. BlackBerry had zero ecosystem outside of messaging and corporate email, both obviated by... Apple. Samsung has been competing on price, but is losing some share to cheaper Chinese competitors, and is seeing shrinking profits, big time.

Apple doesn't compete for marketshare, and has (yet) to see anyone threaten its profits. Samsung has had trouble with both in the last two quarters, and has issued investor guidance that their big profits aren't coming back soon.
30 weeks ago
30 weeks ago Link To Comment
Correction: Samsung profits have been shrinking for THREE quarters, and has issued guidance that the second half of 2014 will also be "difficult."
29 weeks ago
29 weeks ago Link To Comment
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