Apple Inc. Case Analysis

There are many competing brands of smart phones and Samsung has reported a decline of profits in 2014. Information from GSM arena shows than Samsung released 54 new phone models in 2014 , compared with 24 by HTC , 11 Motorola and 2 by Apple, leading to increased production costs and lack focus on a specific customer segments thereby losing some of its competitive advantage (GSM Arena , 2015).The lack of popularity of its own OS (Tizen ) and dependence on Google’s Android platform makes it vulnerable on google to develop an “ecosystem”. There are component integration issues as well as loss revenue from potential App sales (Strategic Mangement insight , 2015). Negative publicity from litigation due to patents are likely to continue as technology patents are vague and Samsung with is large portfolio is likely to infringe on some of the patents (Tibken, 2014).

Apple and Samsung are the two greatest organizations with an industry of the greater part the worldwide cell phone advertise. Consistently, both Apple and Samsung are getting new developments their mobiles, which extraordinarily expands their cell phone deals. Since there is though competition in the present world, Apple created a trend by introducing IPhone to the world, which is one of the best feature smartphone with high security. According to Business Insider, “Though apple is getting more profits and experiencing the first place in the market, then came the competitor Samsung, Samsung introduced the Galaxy S smartphone which made the apple market

v. Samsung Electronics Co., Ltd. was the first of a progression of continuous claims between Apple Inc. what 's more, Samsung Electron ics in regards to the outline of advanced cells and tablet PCs; between them, the organizations made more than 50% of PDAs sold worldwide starting July 2012. In the spring of 2011, Apple started disputing against Samsung in patent encroachment suits, while Apple and Motorola Mobility were at that point occupied with a patent war on a few fronts. Apple 's multinational case over innovation licenses got to be known as a versa tile 's component gadget "Cell phone patent wars": broad case in furious rivalry in the worldwide business sector for customer portable correspondences. By August 2011, Apple and Samsung were prosecuting 19 progressing cases in nine nations; by October, the lawful question extended to ten nations. By July 2012, the two organizations were still entangled in more than 50 claims far and wide, with billions of dollars in harms asserted between them. While Apple won a decision to support its in the U.S., Samsung won decisions in South Korea, Japan, and the UK. On June 4, 2013, Samsung won a constrained restriction from the U.S. Universal Trade Commission on offers of certain Apple items after the commission discovered Apple had damaged a Samsung paten.

The purpose of this essay is to compare, contrast and evaluate the two major competitor companies: Apple and Samsung. This essay begins by discussing the market value of the both companies. It will then turn to discussing the product portfolios of Apple and Samsung, and then examines the service and it concludes by evaluation.

In addition, Samsung tried to duplicate Apple’s products once and Apple sued them “Apple sued Samsung in April 2011, accusing it of copying patented designs for mobile devices, and Samsung countersued” (Bloomberg News). Which to some people is considered a big fail for Samsung and it made them trust American products more. Moreover, few months ago Apple and Samsung launched their new smartphones and people were more likely to buy Apple’s phones because some of Samsung’s phones explosion “When several Samsung Galaxy Note 7 smartphones spontaneously exploded in August, the South Korean company went into overdrive. It urged hundreds of employees to quickly diagnose the problem” (Brian X. Chen and Choe Sang-Hun). This was an obvious and most recent example of Americanization in technology and people are still talking about it. And Americanization is still happening in the world of technology because many international companies are competing with Americans companies to rise and have a global

Samsung products range from mobile devices, TV, audio and video, home appliances, cameras, PC and peripherals and print solutions (Samsung 2014). This essay will predominantly look closely at Samsung’s mobile phones market.

The battle for the mobile computing market share between Apple and Google wouldn’t matter much if there wasn’t so much potential money at stake, and the majority of that money will come from advertising. App sales are another important component, especially for Apple. What irritated Steve Jobs about Google OS was that the Android phones offered many features that Apple had created, including the overall look of the devices and the use of multi-touch finger swiping.

In 2014 both Apple and Samsung sold a combined total of about 108.2 million units of their products! Samsung sold about 71 million units while on the other hand Apple sold 94.75 million units. For the past few years, the competing and comparison between Apple and Samsung was at its maximum. Fights started between people to prove an idea about which company is the best but they did not know that they were only comparing their smartphone. That is not the only thing a person should concentrate at while comparing two of the biggest multinationals in the world. People should look at the sales of all of the company’s products, their profits and losses, the history of the company, and the reviews of the people about their

Even though Apple has encountered many setbacks, it continues to bring new and improve products to the market. Apple’s competitive strategy has been innovation. They have made an extraordinary effort developing, implementing, and executing its very unique strategy through innovation which has resulted in new product, and the enrichment of the existing ones. More specifically, Apple attempts to meet and supply the needs of a global market, by offering eager and enthusiastic consumers with innovated and high-quality products and services. Apple has employed a differentiation strategy linked to innovation with its three core products (computers, personal media player, mobile phones, tablets and other accessories). A key piece of their strategy involves meeting the needs of the converging digital electronics and computer markets. Apple has elected to implement its strategy by designing and developing proprietary operating systems and software technologies, thus allowing for strict protection of its intellectual rights.

A total of 96.8 percent of phones out in the word are either iphones or androids according to the 2015 recorded phone sales. Since 2010 apple and and android has been fighting and competing with each other trying to achieve that top of the smartphone market. It all started when Samsung released their bread new Galaxy S. This phone was identical to the iphone, having similar looks and similar icons. Many people consider this new Androids product better at this moment because android has been out for a longer time, and still provide mind blowing devices like this one. This situation made apple very furious because this new android device was a replica of their iphone. The market prices went crazy and people started favoring androids because how they looked and acted just like an iphone and it was and a completely different price range. There forward androids started selling more than their own iphone. This made apple step up their game in production and started listen to people 's comments. This is when the real fight begins. This is when people started seeing that apple in general is better than android offering more to the people and offering what they asked for.

Smartphone market is fast-moving and very high competitive due to intense competition between two big smartphone producers, Apple and Samsung. At the beginning, Apple dominated this market solely by introducing a new innovative type of smartphone by Steve Jobs that has revolutionized people lifestyle and mobile industry. A few years after launching iPhone, a new fast following competitor, Samsung came into this market, and their sales have outperformed Apple from the year 2011 (According to Chart A1 in Appendix). In term of developing their product, Samsung has created its products by following Apple’s technology since the beginning of producing its smartphone, therefore there are many patent lawsuits between them. Since Steve Job passed away, Apple has continued to develop its core competence, which is an innovation of new type of smartphone that could help them to take back their market share from its rival, Samsung. Nonetheless, the competition between Apple and Samsung will still continue intensively in the future.

On Friday, August 31, 2012, The Tokyo District Court ruled that Samsung’s Galaxy smartphones and tablets did not violate an Apple patent on technology that synchronizes music and videos between devices and servers.[21] The three-judge panel in Japan also awarded legal costs to be reimbursed to Samsung. Presiding Judge Tamotsu Shoji said: "The defendant's products do not seem like they used the same technology as the plaintiff's products so we turn down the complaints made by [Apple]." An unnamed spokesperson for Samsung said: "[We will] continue to offer highly innovative products to consumers, and continue our contributions toward the mobile industry's development."[22]

the overall market share of Samsung is more than 21% whereas apple is still at 13.9% which clearly states that there are still many areas in which Apple Inc. can develop its market and get a good numbers. (corporation, 2015)

Apple operates with fierce competition in the consumer electronics segment which comes in many different forms. There are a large number of competitors in the different market niches who offer many similar products. Furthermore, many of these competitors' products are priced much less than an Apple branded products. Just as soon as Apple releases a new product, major companies begin imitating it immediately. In the personal computer industry, market pressure is continuously being exerted from such companies such as IBM, Dell, HP, and Toshiba (Wildstrom, 2009). Furthermore, with its flagship product the IPhone, Apple competes with companies like HTC, Palm, Blackberry, and Motorola (Wortham, 2011). Apple has had significant success despite the competitive environment because Apple commands a brand loyalty and dedication to innovation that few companies have ever achieved.

Samsung made proposals to apple partners Japanese display producer Sharp Corp and South Korean chipmaker SK Hynix. Samsung orders to Sharp Corp for high-resolution LCD screens for Galaxy Assembly range of products and the negotiations were personal. IN 2013 Sharp supply to Samsung 3% stake which $110 million what is boosting sales for Korean Firm. Samsung also using more chips from Qualcomm who is another apple major supplier, some other suppliers who deliver parts to together Apple and Samsung exclude Toshiba Corp in NAND memory chips, Sony Corp, in image sensors, and Corning for its Gorilla Glass used in iPhones, iPads and Galaxy products, industry data show. The Assembly range of products mass producers STMicroelectronics and Bosch, Pressure sensors navigation features supply parts to Galaxy range, In the future apple may be tapped to them according to research firm iSuppli. ( Kim, 2013)