Can't Carry Samsung Galaxy Note 7 in Flights - Major Setback to Samsung and Good News for Others

In another jolt, today Indian Airline regulators DCGA barred air travellers to carry Samsung Note7 with them during flight. Given the premium category device,  millions of Indian user must be using the device. Recently Samsung recalled it's Note7 from market post frequent battery blast issue. Post government body action for the security and safety purpose is a welcome step but at the same time it's a major blow to Samsung Brand value.

I won't be surprised that it will also impact the sale of other Samsung Model as Indians are quick to change their perception. As Samsung Promised that they will relaunch their Note7 in coming weeks but no one knows the extent of technical glitch which prompt battery to be overheated. Another two to three week delay in launch will impact Samsung holiday season. In the meantime, Samsung must work on another model or launch it with another name as it is clear that their Note7 sales in India will be very low whereas it's an opportunity for Sony, LG and Apple to gain market share in the premium segment.

I Already said that  in my recent article tell everything about Samsung or apple . 

Go check it here : Which one is better Samsung Note7 vs IPhone 7

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Samsung Note7 Vs Apple 7 - Apple Getting Free Goal Post

Recent incident of Samsung Note7 attached battery blast put Samsung in tight spot. It forced Samsung to recall their device from the market place and it will delay Samsung Note7 entry by two months. It will also cost them millions of $ in pulling out devices from the market and the replacement of all devices. Samsung  launched their Note series 7 in hurry to grab the market share and generate hefty profit in the absence of high end device from the competitors. 

Being an advocate of Samsung, they rely on the device design more than the software coupling. They are bound to integrate all the applications of Google which Google enforce on Android device manufacturer. On top of that  Samsung integrate their own Samsung Hub to generate money from the services but they failed to generate the same against the expected one. Samsung traditional way of differentiation is higher RAM, ROM, Screen and Resolution along with Camera.

Whereas

Apple post tepid adoption of iPhone 6, Apple will come out with very strong Software coupling. Apple is known for Technology centric Software whereas keep their hardware simple and robust. iPhone 7 will get the free goal post with no player from Samsung post disastrous happening around Samsung Note7 attached battery Blast. Apple is expected to come out with enhanced battery, screen, camera, security and their centric ecosystem based multiple services. 

We should not expecting hardware design change from Apple but do expect number of Software defined Make your own device " MYOD"; will differentiate iPhone 7 completely from Samsung. We should expect bumper growth and adoption of iPhone device and record breaking profit of Apple during holiday period. I also recommended earlier that investor should buy Apple Share whereas Samsung investor should pull out as their profitability will be impacted very heavily.

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India Smartphone segment achieved 14% QoQ Growth

Based on IDC report, India Smartphone shipment reached 6.1 million units at the end of Q1, FY2013 achieving growth of 14% QoQ. The increase in shipment volume got major boost with Samsung offer, Micromax successful Canvas Series of Smartphone and Karbonn $200 smartphone positioning. Based on the Smartphone player’s strategy to launch multiple device in Sub $200 range is going to propel higher adoption by new customer and in replacement cycle mode. I would not be surprised if the growth and volume if going to be captured by domestic Smartphone player. It is also expected that based on the trend of Q1,FY13 smartphone shipment, the total FY 13 smartphone shipment is going to overshoot previous estimate of 27.8 million unit shipment by IDC analysts.

Samsung Seamless Shift from OS dependent to OS Agnostic Smartphone Player – Differentiating Proposition

In Feb 2013, Samsung announced to move out of home grown BADA smartphone OS and collaborated with Intel to develop Linux based Tizen OS. The move was quite surprising as BADA was gaining in smartphone OS segment. Samsung redirected most of the BADA resources to support Tizen OS and demonstrated the glimpse of Tizen OS. The move clearly indicated that Samsung strategic move to focus on growth of Android OS and not to pose any threat to Android through BADA. Any tactical move to increase BADA OS penetration was accessed as shifting slight focus from Android to BADA. The moving out of home grown BADA OS also perceived positively by Android developers and showed Samsung commitment towards Android. Interestingly, Samsung also positioned its WM8.0 OS supported devices and marked its presence in the Windows Mobile OS segment. Even though, Samsung is releasing less number of WM 8.0 devices compared to Android but showed its support for another OS. Now they collaborated with Intel for Tizen and also getting support from few large device manufacturers. Tizen OS is fully compatibles with HTML 5 and also helping BADA ecosystem players to port their applications to system as per the Tizen specifications. Samsung tactical strategy is to be in the central of not all but most of the mobile operating system ecosystem to get clear picture of happening in other mobile operating system segment. By supporting mobile operating system they are also creating opportunities for their chipset and storage business segment. It enables them to identify the gap and way around of the gap to be truly innovative device manufacturer. Samsung learnt from Nokia about the impact of owning mobile operating system rather than supporting it to win over Industry support. Nokia closed ownership environment and dominance on any proposed changes in Symbian offered opportunity platter to Google to garner support from industry Mobile ecosystem players. By venturing into Android, WM8.0 and Tizen; Samsung also communicated to mobile operating system segment that they are least dependent on any of the mobile operating system and capable of shifting gears from one to another mobile operating system based on the change in consumer and prosumer usage pattern.

Microsoft Collaboration with Best Buy & Canadian Future Shop – Nokia Chance to Increase Market Share & Brand Awareness

In an attempt to break in tiered sell through processes in US and Canadian Mobile Device Market; Microsoft collaborated with struggling Best Buy to open Microsoft powered Windows store. Initially, Microsoft is going to open Windows Store in 600 outlets of Best Buy covering around 50% of the Best Buy outlets. Microsoft also entered in similar agreement Canadian Electronic chain Future shop to open 100 Windows stores. Currently, Apple and Samsung enjoy strong relationship with electronic retailers and generally get 2000 to 2500 square feet of dedicated product line centric space which in turns helped them with higher product adoption by consumers and prosumer’s. The collaboration is going to help Microsoft to initiate user awareness programme about Microsoft product line other than non-mobility product line. In my point of view, Microsoft would be focussing on highlighting connected device support through Microsoft different product layer.

In the past one year, Microsoft also turned buoyant regarding their successful global Window Mobile Operating System WM8.0 adoption through Nokia Lumia product line. In Q42012, Nokia helped Microsoft Windows Mobile OS to replace Blackberry and captured third mot adopted Smartphone OS in US.

Nokia Launched their product line in collaboration with US wireless service providers and due to near zero level presence of Nokia in the past; the sell through team of wireless service providers finding it difficult to convince potential buyers to buy Windows Powered Nokia device. The wireless store attached sales team finds it easy to push Android device given its awareness with consumer base.

The collaboration can be considered as excellent opportunity platter for Nokia to extend the brand awareness in their traditionally weak geography. It would enable Nokia to sell WM8.0 powered multiple Lumia device.

Microsoft vision is to also transform Microsoft DNA perception from Operating System Company to Connected Device end to end solution provider. The space is going to be useful for Microsoft to demonstrate live as well as virtual multi player X-Box, Surface and other device centric product line.

The collaboration and shelf space would also be useful for both Microsoft and Nokia to develop BYOD vs. Nokia advantage given end to end office connectivity through Windows product line. The proposed store agreement is definitely going to be huge challenge for Blackberry to regain 3^rd spot back from Nokia in US market

With multimillion foot fall every year, even if Nokia manage to convert less than half a percent into potential Nokia product user would change US smartphone OS adoption game. Any change in product awareness and adoption is going to have direct impact on ecosystem players around it. In my point of view, the upcoming opportunity and its success may make or break Nokia Long term investors and ecosystem around it.