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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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