Analyzing ABC Corporation's R&D Strategy and Market Position

ABC Corporation operates in the highly competitive electronics industry, focusing on consumer gadgets such as smartphones and tablets. The company's financial health has recently come under scrutiny due to increased competition, rising input costs, and a stagnating market share. Investors are keenly analyzing its operating margins, research and development (R&D) expenditures, and supply chain efficiencies.

Considering ABC's financial statements, suppose you observe that the company's R&D expenditure has been consistently above its industry average, yet its market share continues to decline. In this context, assess the implications of ABC's strategic choices on its long-term growth potential compared to its peers.