Menu
ChatOn closure highlights Samsung's app, services woes

ChatOn closure highlights Samsung's app, services woes

Buyers of its Galaxy smartphones and tablet continue to prefer Google and third party apps

Samsung Electronics continues to struggle to attract users to its own apps and services, forcing the company to focus on more on collaborating with other companies and stepping up efforts to offer better-looking devices.

Smartphone manufacturers develop apps and services to attract new buyers and convince old ones to remain faithful. However, with the exception of Apple, this has proven very difficult, even for a company with huge resources like Samsung.

Last week, Samsung announced it was pulling the plug on its ChatOn messaging app. The company also plans to shut down the WatchOn TV guide app in all countries except the U.S. and Korea on Dec. 31. Earlier this year, Samsung also gave up on its Hub line of services, including Books, Music, Video and Media, which had failed to compete with Web-based offerings from the likes of Amazon, Spotify and Netflix.

CCS Insight analyst Paolo Pescatore summed it all up by saying Samsung should be applauded for trying to develop its own suite of services -- but what it offered wasn't what customers wanted.

Samsung isn't alone in having in-house apps and services fail, though that probably won't doesn't make beleaguered mobile executives at the company feel any better. HTC closed its Watch video service this year and last year BlackBerry closed its music service.

However, the failures so far don't mean Samsung is giving up its app development efforts. Last month the company took a new stab at the video market with the launch of Milk Video in the U.S., a video service for which Samsung has partnered with Funny Or Die, Vevo and Vice.

Samsung is also hoping to make a mark in areas such as health and mobile commerce. To be able to compete with Apple Pay, Samsung is rumored to be in talks to license LoopPay's mobile wallet technology. Collaborating with a company that has a proven platform could be a better option for Samsung than developing its own products from scratch. In the wake of the closure of its apps, Samsung has in fact relied more on collaboration with companies like Amazon and Slacker for books and music.

But in the end, a lack of applications and services isn't the reason why Samsung has struggled this year as its smartphone sales dropped.

The all-plastic design of the Galaxy S5 didn't resonate with consumers and put a damper on the company's most important product. Samsung has started to make some changes with the use of metal on smartphones like the Galaxy Note 4, but it remains to be seen if that's enough. Getting the high-end design right during next year will be much more important than any services Samsung can come up with.

Send news tips and comments to mikael_ricknas@idg.com

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags mobile applicationsSamsung Electronicsmobile

Featured

Slideshows

Tight lines as Hooked on Lenovo catches up at Great Barrier Island

Tight lines as Hooked on Lenovo catches up at Great Barrier Island

​Ingram Micro’s Hooked on Lenovo incentive programme recently rewarded 28 of New Zealand's top performing resellers with a full-on fishing trip at Great Barrier Island for the third year​ in a row.

Tight lines as Hooked on Lenovo catches up at Great Barrier Island
Inside the AWS Summit in Sydney

Inside the AWS Summit in Sydney

As the dust settles on the 2017 AWS Summit in Sydney, ARN looks back an action packed two-day event, covering global keynote presentations, 80 breakout sessions on the latest technology solutions, and channel focused tracks involving local cloud stories and insights.

Inside the AWS Summit in Sydney
Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day

Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day

Ingram Micro hosted its third annual Cure Kids Charity Golf Tournament at the North Shore Golf Club in Auckland. In total, 131 resellers, vendors and Ingram Micro suppliers enjoyed a round of golf consisting of challenges on each of the 18 sponsored holes, with Team Philips taking out the top honours.

Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day
Show Comments