Competitor Analysis Apple Vs Samsung

Competitor analysis Apple vs Samsung

Apple

When apple entered into mp3 market in 2001, the product was not unknown product to customers since it had been 5 years after the first product from Multimeadia’s Rio (U.S) and Saehan (South Korea)1. But, distinctively enough, first ipod had the ability to attract consumer’s eyes with much bigger capacity in storing music (5GB of first product that was almost 40-80 times bigger capacity than other standard products (64-128MB) 2 and stylish design of scroll wheels. Differentiated products have been developed constantly to satisfy and attract customer’s needs having produced 5 categories and 39 products so far since the success launching of first ipod, the duration of next product releasing in the market is estimated only 4~6 months on average to provide new features such as pictures, colours, videos, nano, mini, touch as well as slight difference of user’s requirements (sound function, battery enhancement, capacity expansions), which has been consistent with company’s goal “Make all music lovers own ipod+itunes”3. As a market leader, ipod held over 70% of market share particularly in America4 that would have resulted from the most creative CEO �Steve Jobs’ Online music store “itunes” is one of the most awardable ideas in apple’s history not only it contributes to apple itself but also it tries to eliminate controversial mp3 song’s copyrights. 99c per track was so rationale, understandable and enjoyable for people who would like to buy some tracks of album rather than purchasing whole album5 and the sales increased 78 percent in 2006, 18.5 million tracks per week, average transaction sales grew up by 10% as well6. Remarkably, 10.6 million ipod has been sold to customers and 1.6 million iphones7 which are expected to be released in Australia soon.

Samsung

With strong brand image and top technology skills, Samsung would be seen as the better position taker to target customers in electronics industry. Due to the heavy spending on R&D of memory technology8, capacity of storing songs and videos in portable music & media player could have been expanded at lower costs leading lower prices in the market. And ironically, the strength of technology made apple is able to produce at low cost when Samsung sold memory technology to apple at 40% discounted9.

Not only cost leader in the market but Samsung has not been late behind to develop variable products. It was first company to release headphones