Category: Analysis

Introduction

  • Samsung Group is a multinational corporation that has its headquarters in South Korea. Samsung electronics is currently the largest information technology company in the world.
  • Apple is an American corporation and is the second largest information technology company in the world. 

Apple

In the first quarter of 2012, Apple became the top mobile market for the first time in the lucrative US market. As such, Apple’s shares of the US mobile phone market jumped from the previous 34 percent to 36 percent while the Samsung shares rose to 32 percent from 26 percent. The mobile products comprised of the feature phones as well as Smartphone. Apple products such as the iPhone, iPad and  iPod Touch introduced innovations in mobile phones, personal computers and portable music players. These products were widely successful around the globe

Samsung

Previously, since 2008, the Samsung cooperation had maintained the top vendor position in the US market.  While Apple’s investors have been anxious in the recent past over the growth for the company, Samsung’s cheapest phones, the premium Smartphone, which is powered by Google’s Android software and signs, saturated the markets in developed countries. The overall shipments increased from 4 percent to 52 million units in the United States during the fourth quarter of 2012. This growth was propelled by massive demand for 4G Smartphone’s, as well as 3G features.

Net Profit 

Samsun’s net profit almost doubled from a year before and their operating profit was impressively high. Samsun is said to have sold more smartphones within the first three months of this year, than Apple. Samsun is said to have sold 44.5 million as against Apples’s 35.1 million for its iPhone.  In terms of mobile phones, Samsum shipped 93.5 million as against 82.7 million for Nokia.  Samsun has a total share estimated at 30.6% of the smartphone market.  Apples has an estimated 24.1% share.

In the United States, Apple sold over 17 million iPhones in the fourth quarter of 2012. This is a thirty eight percent increase from the previous year. The new iPhone5 drives the aggressive market, comparable to steeper carrier subsidies. The Samsung Cooperation shipped 17 million phones during the same time period. However, with its wide range of international markets, Samsung electronics is equipped to dominate the international market.  Without doubts, Samsung’s smartphone has overtaken iPhone in the contemporary society. The firm shipped a range of handsets worth 16.8 million recently.  Estimates released on Tuesday by IDC present Samsung as the global market leader in the summation of shipments, in the first quarter of the year.

The Apple  iPhone is dominant in the US market. Apple is also bolstered by strong, consistent demand for less expensive iphone models.  Apple earned 11.6 billion dollars in the first quarter of the year, even though its revenue is about 10% less than Samsun. Its iPhone and iPad  business continues to be lucrative. The Galaxy Note Smartphone tablet is a continued success for Samsun.  In the latest report postings, telecom equipment and Mobile were responsible for 62% of the operating profit for Samsun. The company’s profit margin fell to 17.4% from 18.8%.

Nokia Corporation

Incidentally, Samsun also wrestles with the Nokia Corporation over research method as well as practices. Nokia used to be the leader until the company was overtaken by Samsun. Nokia announced its quarterly results, which incidentally is one of its worst, and said the tough competition in the smartphone  market was responsible for its net loss in sales.  The major competition is between Apple and Samsun in the smartphone market.

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Both companies posted tight schedules as well as returns during the quarter. They also posted growth in the key areas. Apple’s growth involved the launching of the popular phone 4s, in addition to growth in the contemporary markets, most notably in China.  

Future Trajectory

With regards to future trajectory, Apple’s latest models of mobile products have received very good reviews, this includes the new family iPad 4 and iPad mini. These products have been selling very well all over the world. Apple needs to keep the upward trajectory.  Samsun is striving to have more patents registered, to avoid possible or further lawsuits. The company is also making efforts in the software business to continue to develop competitive technologies.  Samsun prepares to respond to changes in the IT market rapidly.

Conclusion

In conclusion, there are many disputes between the two giants with regards to intellectual rights. Apple has launched a series of lawsuit against Samsun. As of July 2012, the two giants had about 50 lawsuits around the world. In the US, Apple won a ruling, while in UK, South Korea and Japan, Samsun won rulings in its favor. The competition between the two companies bears close observation as new models which are in anticipation, have yet to be launched.

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