Apple vs Samsung

Apple and Samsung should make it clear that smartphone industry is being categorized in what to have and what not to. Both the companies report their record earnings for the first three months of the year, mainly focusing on smartphone sales. They are offering almost similar features in their phones. Yet they both are quite separated.

Apple sells just one smartphone, the iPhone. They emphasize the design and portability of this device over sales. They invest heavily in the consumer brand. They earn good from the variety of softwares and apps. On the other hand, Samsung, which is the world’s largest tech company, follows Apple with great speed and offers multiple products with wide range. They create multiple versions of a product to meet the needs of its customers. The profit here is controlled by own manufacturing.

Their different paths are a proof that different models can prevail together. They both control about 25% of the global market share of smartphones.

 

 At the end of 2010, Apple’s market share reached 23.5% from 16%. Samsung was holding 22.8% of the market in the same quarter, which was quite increased from previous 9.4%. At the moment, it looks like they both are pulling away. The battle to be supreme over the other has caused many clashes between the two giants. In April 2011, Samsung was sued by Apple over the design and patents for smartphones. Samsung replied in the same coin and the legal battle spread in nine countries. With the help of commercials, Samsung has taken over the market with its Galaxy smartphones that are available in different version in different countries to suit the needs of the customer.

On the other hand, the companies has learnt to work together. Apple is the largest consumer for Samsung’s component divisions, including display screens and chips. Their legal battle has not slowed down their financial performance in the market.

The phone industry is now focusing on fast moving products where even one missed cycle can result in a downward movement. This industry works in cycles where one is dominant at one time and the other at the other time. 

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