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Samsung vs iphone
11/25/13

SAMSUNG ELECT LTD(F) (SSNLF): Samsung's New Strategy Is A Worry For Apple - Seeking Alpha

Samsung's New Strategy Is A Worry For Apple
Nov 25 2013, 00:07 by: Vivek Gupta
,

Samsung (OTC:SSNLF) and Apple (AAPL) are two leading players of the smartphone industry (see the table below).
Apple is the most profitable, while Samsung is the largest player (by revenue as well as volumes) in the industry.
Samsung is not only the largest but also is the most competitive player in the industry. Samsung is becoming more and more competitive due to its rising scale and integrated operations as it makes chips and screens for most of its mobile phones in-house.

(click to enlarge)
Samsung may well be the most competitive player, but Apple is the most profitable player because Apple is the king of the premium segment of the market. Average selling price of iPhone is much higher than its competitors, and it yields very high margins for Apple.
Despite all the efforts like, lower prices, aggressive marketing, innovations, etc. Samsung so far has not been able to challenge Apple's dominance in the premium segment. Samsung reported a muted growth in the sales of its premium handsets for the last reported quarter, whereas Apple reported an 8% sequential rise in the iPhone shipments during the same period.

(Source: Companies documents)

There are multiple reasons behind Apple's dominance in the high-end smartphone segment such as its brand image and its premium hardware as well as software quality (iOS). Competitors may argue this, but the dominance of Apple shows that in the buyer's mind Apple is a premium brand, which offers innovative technologies. The introduction of the seekingalpha.com/article/1860001-samsungs-new-strategy-is-a-worry-for-apple?source=email_rt_article_readmore 1/4

11/25/13

SAMSUNG ELECT LTD(F) (SSNLF): Samsung's New Strategy Is A Worry For Apple - Seeking Alpha

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