Can Samsung Take Hardware Skills to Software?

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Jan. 2 (Bloomberg) –- Mashable Senior Tech Analyst Christina Warren, Bespoke Investment Group Co-Founder Paul Hickey and Bloomberg’s Emily Chang discuss Samsung’s recent 5% drop with Adam Johnson on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Paul our closer with a trend.

Stocks dropped another five percent today on his comments.

What is going on?

When we look at samsung, we have to look at the picture.

The company does a lot of things.

Everything from refrigerators to ceiling fans to smartphones.

What the chairman said today is he talked about what samsung does not do well yet.

That is software.

He encouraged people to think about how samsung could move forward beyond hardware.

They have televideo operating systems, which analysts say is mediocre.

A smart phone operating system.

Analysts again say that is mediocre.

They really rely mostly on android.

That is on google as well.

The focus will be, how can they control the end to end experience like apple does?

Hardware and software?

Google does it.

They have android.

Microsoft does it.

They brought nokia.

Samsung needs to think about how they cannot just control the hardware, which they're doing incredibly well in, but the software as well.

The big question is, can samsung innovate in software in a way that is meaningful, in a way that is valuable, in a way that is quality, given it is a company that does so many other things?

Another thing we should look at with samsung this year is computing.

They have got the galaxy gear smart watch.

It has not unwell yet.

There is talk samsung could be getting into a google glass product.

The next frontier may well be cars.

Apple ios made be compatible with a number of different automakers.

The screen on your dashboard is getting bigger and bigger.

Apple and google might want to be there.

They may be looking at potential innovations in the mobile category as well.

As we listen to emily, sam some kind of sounds like apple.

It has got to keep creating the next best things and has got to be in front of consumers on the outside and inside.

The comparison to apple is apt.

Earnings are the best ever and the stock drops.

Emily is right on.

They need to look at markets where they can expand.

They are selling millions and millions of handsets.

The smartphone is becoming commoditized.

They need to look at what is the next a thing.

Will it be cars?

Will it be wearables?

Will it be robotics?

These are areas where a lot of competitors are investing for a long time.

In addition to software, they need to be looking at services.

Other than their security platform, they are not doing a lot with clout and security.

That is something that could keep people in their ecosystem.

Big contracts are places where they could potentially make a lot of money.

They need to be looking at how to build out the ecosystem going forward and not just doing the status quo.

If we look at just smartphones, that is the easiest part.

The s-4, we could all talk about and appreciate that.

If you look at market share from the third quarter of 2012 versus the third quarter of this past -- samsung game 4/10 of one percent what are they doing wrong?

Why they not getting more?

The market is starting to commoditize, especially in the west.

It is harder for them to compete and get new users when you do not have as many new users coming into the channel.

They need to start going more low-end if they want to grow numbers and go after china and other asian markets where they have strong foothold.

I think software is one of the big things were they are really well known for android but that is a google controlled ecosystem.

They need to start doing things that can differentiate themselves above and beyond.

Emily, i see you nodding.

What are you thinking?

The story will not be about apple.

It will be about other non-apple players nothing at samsung's heels.

Samsung is the global leader in smart phones.

They are doing a lot of things well.

Some people say they maybe deserve a little more love.

Here in the u.s.. it will be about companies like microsoft, which has not really come into its own in the smartphone space yet.

Microsoft is looking pretty good.

On the other hand, samsung has a lot of things working in its favor.

It is the global leader.

Huge markets like china, they have a bigger screen.

Something apple has resisted to do.

It seems like consumers are wanting more and more.

I think it will come down to, can they create a better experience?

That is not just hardware.

That is with the operating system as well.

A customize a lot of things with android.

They have some features here and there.

Can they create an end to end experience consumers really want to hold in their hands?

A great point.

What about an investor experience?

When you look at the charts, what do you see?

The last year has been rough for stocks.

You see a bunch of lower highs in the stock.

Right here, here, and here.

Acceleration to the downside.

Today.

An uptick in volume.

You want to see volume and stocks stabilize.

From a longer-term perspective -- you have got to turn off, hit clear and drag the other time -- the other one down.

First time doing this.

The longer term expect -- perspective, the upper trend or mains in place for samsung.

What you want to see in the next couple of days is for that to hold and the volume to

This text has been automatically generated. It may not be 100% accurate.

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