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Summary BUSN410 Week 3 Assignment.docx BUSN410 Week 3 Assignment American Public University BUSN410: Critical Thinking Strategies for Business Decisions Week 3 Assignment For my paper, I chose the article from the Wall Street Journal, œThe Two-Horse Smar$7.49
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Summary BUSN410 Week 3 Assignment.docx BUSN410 Week 3 Assignment American Public University BUSN410: Critical Thinking Strategies for Business Decisions Week 3 Assignment For my paper, I chose the article from the Wall Street Journal, œThe Two-Horse Smar
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BUSN410 Week 3 A BUSN410 Week 3 Assignment American Public University BUSN410: Critical Thinking Strategies for Business Decisions Week 3 Assignment For my paper, I chose the article from the Wall Street Journal, œThe Two-Horse Smartphone Race; Apple, Samsung Use Different Playbooks ...
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BUSN410
Week 3 Assignment
American Public University
BUSN410: Critical Thinking Strategies for Business Decisions
Week 3 Assignment
For my paper, I chose the article from the Wall Street Journal, “The Two-Horse
Smartphone Race; Apple, Samsung Use Different Playbooks in Battle for Supremacy; For
Rivals, It’s Specialty vs. Scale” (Vascellaro, 2012). Apple and Samsung are the top competition
companies in the smartphone technology world. Apple and Samsung hold 25% of the global
market share of smartphone unit shipments (Vascellaro, 2012). Apple is the world’s most
valuable company, yet they only sell one phone, the iPhone (Vascellaro, 2012). Apple heavily
invests in its consumer brand and emphasizes design and profitability over sales (Vascellaro,
2012). Samsung, on the other hand, is the world’s largest tech company, creating multiple
versions of myriad products like the Galaxy smartphones yet built to the customers needs.
Research firm IDC estimates the smartphone market will reach $219 billion in sales by
2012 (Vascellaro, 2012). Apple’s market share reached 23.5% and Samsung reached its market
share at 22.8% (Vascellaro, 2012). Apple and Samsung together claim 91% of the operating
profits of all cellphone makers (Vascellaro, 2012). Unfortunately, the battle to be number one
has caused issues between Apple and Samsung resulting in Apple suing Samsung over
smartphone designs and patents. Samsung, in turn, countersued which began their legal battle
which spread over nine countries (Vascellaro, 2012). Samsung has taken this battle as far as
using its commercials to mock Apple enthusiasts as well. That being said, both Apple and
Samsung, regardless of their differences have learned to work together in the technology field.
Apple is the largest customer for Samsung’s component divisions, which make display screens
, and chips (Vascellaro, 2012). The smartphone industry is starting to take defensive steps to the
growing dominance of both Apple and Samsung. Verizon Communications, for instance, are
disgruntle with the costs of carrying the Apple iPhone in their stores, and now are supporting
smartphones carried by Microsoft Corp.’s Windows software (Vascellaro, 2012). Verizon’s
Finance Chief, Francis Shammo, states “It’s important that there is a third ecosystem that’s
brought into he mixes here, and we are fully supportive of that with Microsoft” (Vascellaro,
2012).
Samsung is expected to double its shipments of smartphones by 2013 and will vault in the
industry with it’s multiple operating systems by putting more resources behind its products that
use that Android software. Samsung has created five levels of Android-based phones that are
distinguished by price and features, with two or three models in each level to help carriers and
other distributors stand out from each other (Vascellaro, 2012). By marketing these five levels
of Androids, Samsung is able to offer their Android smartphones at a lower cost to the consumer
that cannot afford the luxury price of the Apple iPhone.
The Premises comes from Apple’s and Samsung’s battle for supremacy in the smartphone
and technology global market. The evidence is Apple and Samsung are both very powerful and
very competitive companies that are battling each other for top position in the cell phone market.
Before Samsung stepped into the world of smartphones, they were the sole supplier of flash
memory for iPod (Cain, 2020). Chang-Gy Hwang, president of Samsung’s semiconductor and
memory business met with Steve Jobs and introduced the NAND flash memory. This flash
memory card was much more lightweight and efficient storage device than the traditional hard
disk Apple was currently using. Samsung was one of few companies to guarantee a solid supply
of these flash memory cards and Jobs agreed to make Samsung the sole supplier of flash memory
for the iPod (Cain, 2020). This evidence shows the beginning of Samsung’s dominance in the
market. Next thing the market blew up with Samsung launching their own smartphones into the
industry. Now the supplier has become the competitor.
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