Why Samsung Could Become the New Apple in the Tech Industry

For most of the ten years I’ve been attending CES (Consumer Electronics Show), every presentation, every booth, has had one ultimate goal: to create an ecosystem that encourages consumers to lock in. Year after year, presentation after presentation, someone has come out to showcase how their phone will connect to a fridge, which will then connect to a TV. And year after year, they failed.

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Until Now

Samsung and other vendors have finally cracked the code. For years, they’ve watched as Apple dominated the market in media sharing and remote control, with its limited yet seamless ecosystem. But Samsung, being a major player in both the white goods and mobile markets, has been working tirelessly to bridge the gap.

A Glimpse into Numbers

Let’s look at some impressive numbers that put things into perspective:

TV Sales: Samsung is number one in TVs for the sixth year in a row, selling approximately two TVs per second in November. While only a minority of those TVs are Smart TVs, all new TVs in 2012 will feature boxless interactive television.

What Does it Mean?

This means that Google and Apple are in trouble, as Samsung’s performance far surpasses their own. Moreover, Samsung has effectively headed off Apple at the living room media pass. The implications are significant:

Competition: Samsung is not just a player; it’s a leader in both TV sales and cellphone manufacturing. With 60 million cellphones sold in 2011, it’s clear that they’re not slowing down anytime soon.
Ecosystem Building: By integrating their products, Samsung has created an ecosystem that encourages consumers to stay within the family of devices. This is a crucial aspect of building brand loyalty and creating a seamless user experience.

A New Era for Consumer Electronics

The next year will bring plenty of efforts to bring streaming media into the home, but the company already there will win. Samsung’s success isn’t a sure thing; incumbents rarely survive revolutionary tidal waves like Apple’s design team. However, if their phones and tablets can talk to their Smart TVs and other household appliances, consumers may be inclined to stay within the family of devices.

Can Apple Beat the Odds?

Apple could do this too, but it will be difficult at best and "just a hobby" at worst. Samsung makes everything – from screens to PCBs – which gives them a significant advantage in terms of integration and cost-effectiveness.

The Bottom Line

In conclusion, Samsung has finally cracked the code for building an ecosystem that encourages consumers to lock in. With their impressive sales numbers and seamless product integration, they’ve effectively created a new standard for consumer electronics. The question now is: can Apple beat the odds?