Home > A3, Learning > Which will you choose: Samsung or Apple?

Which will you choose: Samsung or Apple?

Apple, the powerhouse of top consumer electronics, is finally getting some competition from another company. Apple has never had to deal with a challenging company that was able to produce a profitable and popular smartphone or tablet until the new upcoming company Samsung Electronics. The Galaxy S III smartphone is the first smartphone to compete in sales with the Apple Iphone. Since Samsung produces phones and tablets they have now became a potential challenger to Apple. Theses two companies are the top two that are making turning profits in the in the highly competitive mobile phone/tablet industry. Apple gets a whopping 72 percent of the earnings while Samsung gets the rest of the profit.

These two companies control the marketplace for these products. With this competition Apple now has to lower prices and produce new smartphones and tablets quicker so that they can compete with Samsungs products. Samsung does not only just produce phones and tablets but they also produce other goods like computer chips, flat-panel displays, refrigerators, washers and dryers, cameras, vacuum cleaners, PCs, printers and TVs. Both Apple and Samsung have a different approach with dealing with the marketplace. Apple approaches the marketplace by creating new markets and dominating them like they did with the iPhone and iPad. While Samsung invest more into studying existing markets and produces a new product inside that specific market. Vice president of Samsung, Kim Hyun-suk said “We get most of our ideas from the market….“The market is a driver, so we don’t intend to drive the market in a certain direction.” Apple has a different outlook on the marketplace the founder of Apple Steve jobs doesn’t believe in investing into market research; he says that consumers don’t know what they want so that’s why he has to tell the consumers what they want with his products.

Apple and Samsung couldn’t be any more different from the way the do research to the way they manufacture their product. The factors of production in Samsung are very different compared to Apples factors of production. By Samsung investing in research and development they were able to produce a product that had a bigger display screen of 5.3 inches. The opportunity cost of investing more in research and development is that Samsung could have used that money on something else like producing more product or in advertising. They learned this by listening to what consumers want on the next smartphone. Samsung Electronics has a slightly bigger revenue than Apple but Apple is larger in stock market value. Samsung has 60,000 staff members that work in 34 research centers across the globe that sees what the consumer wants and what trends are big at the time. Samsung relies on Consumer Sovereignty because they are persuaded by the consumers to produce a product based off what they want.

Samsung unlike Apple remains a manufacturer while Apple contracts out the assembly of its devices. Samsung has built its business around producing and selling components to other manufacturers  including their competitors Apple, Sony, and Hewlett-Packard. Apple buys many components from Samsung like flash memory processors, graphic chips, solid-state drives and display parts. Apple uses these parts to include them in their own products like the iPhones, iPads and iPod Touch devices and MacBooks. Both companies are look to produce the next big thing. All we the consumers have to do is wait and see which company does it first Samsung or Apple.

  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: