Samsung Mobile: Market Share and Profitability in Smartphones
Autor: Maryam • March 1, 2018 • 839 Words (4 Pages) • 789 Views
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According to Alex Duncan, National Director of Sales at Samsung North America, a big challenge of Samsung is getting customers to understand that not all Android phones are created equal.
If you look at what Samsung does, it really has developed some very thoughtful, user-centric features to its phones. It deserves a lot of credit for innovation. However, a real difference between Samsung and Apple is that Samsung is product-focused while Apple is platform-focused. Apple has done a great job in selling up entire households not just in phones but in complementary devices—computers, tablets, Apple TV, wearable technologies, and services. Each Apple device reinforces demand for the company’s other products. Apple products connect in a seamless way that Android products do not and it’s a shame, because Samsung has a broad portfolio of popular products from phones to home theatre systems to dishwashers that are going to become increasingly connected.
Samsung was the preeminent designer and manufacturer of smartphones in terms of market share—an enviable position. However, the company was dwarfed by Apple in terms of profitability. Had the time come for Samsung to take what profits it could, If the priority was profitability, what were the means for Samsung Mobile to maximize its profits in a commoditized industry? If the priority was market share, how could it achieve that goal. Could Samsung mobile implement a single, undifferentiated strategy worldwide in pursuit of its goals?
Questions:
1. It is the fact that Apple products connect in a seamless way that Android products do not, while Samsung has a broad portfolio of popular products from phones to home theatre systems to dishwashers that are going to become increasingly connected. So what do you think, what is that major challenge for creating one unique OS system for Samsung products?
2. While being high market share and huge product range than Apple, why Samsung could not earn so much profit as Apple did?
3. Why Apple customers appeared to upgrade their phones much more frequently than those who used Samsung’s platforms
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