There's a very strong argument here but the claim appears to rely on the author's expansive definition of "smartphone", in which he encompasses app stores, cloud servers and networks. Perhaps he has a point about the difficulty of investment in taking on these well established players in the field, but I don't feel it's entirely accurate to claim that smartphones themselves cannot be successful.

A new phone with a bare-bones linux-like OS designed to piggy-back on existing networks may have a small place in the market, and others like Jolla that seek to grow toward something big may pick up fractions of a percent as well. Even surviving a decade with a low, but consistent, share is a success (e.g., Apple in the 80s).

Finally, there's the novelty and growth of industry to consider. The current big players in the smartphone market are already scrambling to address the emerging wearable revolution. The "internet of things" is right on the horizon as well and there's no telling where the chips may land. To be fair, the author did mention innovation as a key to potential success. We should consider the grander implications of a constantly evolving business model and offering in that sentiment, though. It's not just a matter of making a neat new feature, but of the entire game changing every 5 years.

While the author makes plenty of good and valid points, I don't think the outlook need be so bleak.