Samsung Software– Move to fix

 

 

 

 

 

  • What more evidence does one need of the weaknesses of Android than its lead vendor moving to fix them.
  • This is what Samsung’s Premium suite part II aims to do.
  • I have long been of the opinion that the weakness of Android lies in its usability which I think ranks far behind that of iOS. see here).
  • The result of this is that Android users use their phones less, gain less utility from them and critically are far less loyal to them.
  • Hence when something better comes along (could it be Microsoft?), there will be plenty of willingness to jump ship.
  • The problem with Android is simply that you have to get it all working yourself which, for most people, is just too difficult and too time consuming.
  • Premium Suite part II from Samsung in my view attempts to fix these problems by making the device much easier to use as well as adding functions that cannot be found elsewhere.
  • This is what Easy Mode and Setup Wizard are all about.
  • If the device can be made to appear to be better integrated, easier to use and with better apps, then users are far more likely to latch on and start using the device more.
  • A device that one can simply turn on, login and have work well is a dream that very few have been able fulfil and the rewards for success are rich indeed.
  • It is here that I believe that Samsung is trying to make a difference.
  • If users like Premium Suite then there will be a preference for a Samsung device and for Android when it comes to the next purchase.
  • This will enhance Samsung’s ability to differentiate in what has become a highly commoditised market and allow premium pricing.
  • Premium prices combined with its volume, distribution and increasingly brand are the bedrock of its superior profitability.
  • Will Premium Suite work? I doubt it. The shortcomings of Android are so widespread that a few apps and a glossy layer on top are unlikely to bring the user experience up to the gold standard of iOS.
  • However, I don’t think it matters for Samsung yet.
  • Firstly because Samsung can still differentiate on hardware and secondly, because it can easily switch to Windows Phone 8 should that prove to be very popular.
  • For the moment, the margins are fat and juicy on Android and there is no immediate sign of that ending.
  • I like Samsung long term but am concerned in the short-term regarding the impact that Apple’s legal strategy may have on sentiment. (see here).

 

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.

Blog Comments

You may be interested in ‘Google has lost control of Android’ http://lowendmac.com/nash/12tn/android-google-control.html
As I wrote there:-
So as soon as Android is good enough, Samsung will want to lock in users and marketshare and profits. It can take another leaf from Apple’s book and optimise the ARM chips it manufactures, but for 1 version of Android. A faster Android, a better TouchWiz and good Samsung default apps may well be enough for lock in. With good sales, good hardware and a stable development environment, developers will come. And, just to show there are no hard feelings, if Google is the highest bidder I’m sure Google search and Maps will be available too.

Totally agree…theonly problem is that Samsung will have to do something in software in order to make that happen. The hardware advantage wont last. Histpry is not on the company’s side here BUT i have been impressed with of the imporvements Samsung have made in this arena.. However it is still a LONG way off being what I would call in with a chance of creating uyser loyalty with its software