The mobile phone, a portable telephone that can make and receive calls over a radio frequency link while the user is moving within a telephone service area, this concept is so easy but very complicated. Service carriers provide many different plans for their goods and services available for their clients. Picking the right carrier, device, and customizing plans based on the individual 's everyday needs.
Samsung and Apple are the world 's largest information technology company by revenue, the world 's largest technology companies by total assets, and the world 's largest mobile phone manufacturer, by volume. These two companies have designed their latest innovated cell phone: the Apple iPhone 7 and the Samsung 7s. Let’s compare: Samsung
…show more content…
Due to the high demand, Samsung had no choice but to delay the release date of the anticipated phone. Being that their goal was also to beat the release of the Apple iPhone 7, it is possible that Samsung was put under too much pressure to release the phone as soon as they could to the public. While doing so in such haste, they may not have properly checked it for any faults. They were too rushed, hoping to gain a competitive edge on their competition.
Within the first weeks after the release of Galaxy Note 7, Samsung had hit their highest stock price of the year (Randewich, 2016). They would beat that price in December, but not before significant turmoil. Within 2 months of its release, recalls for the phone skyrocketed due to complications with the coveted Galaxy Note 7 exploding. Samsung quickly offered a replacement phone, only for the replacements to then begin to catch fire. As shown in the graph above, Samsung’s stock prices hit rock bottom in September of 2016. Chapman (2016) claimed that the company’s mobile division lost 98 percent of its profit from the faulted phone. Credit Suisse (2016) stated “the company at least lost $17 billion in revenue from the production and recalls of the Note 7.” The Galaxy Note 7 was supposed to compete with Apple 's iPhone 7 and Google’s Pixel, but instead it had a negative impact on Samsung’s bottom line. Due to this
Each company has some negative points going against them. We cannot take people’s review because it will be bias to one side and will rather state only their side without looking at the facts but we will look at what is common between them. The negative point in Samsung is its huge amount of employees. Samsung has about 430,000 employee. We all know that the profit is equal to the total revenue minus the total cost and that the salary of the
After news of the exploding battery on Samsung’s Note 7, the South Korean company has decided to issue a recall of all 2.5 million phones. The company may have to spend nearly 1 billion dollars to replace all the defective battery. After the success of Samsung’s Galaxy S7 the timing of this recall couldn’t have been worse. However, this recall may be worth the $1billon as it could potentially save the company’s reputation in the long run. Still, the $1 billion will only represent less than 5% of the projected $20.6 billion in net income.
Even though, Samsung Company exists longer than Apple Company, it has number of major advantages and disadvantages. One of the biggest disadvantages of Samsung is that it has lost in the court against Apple and was forced to pay huge amount of money to Apple, thus undermining the authority of the company as a whole. On the other hand, the advantage of the Samsung is that it exists longer than Apple Company and has its well-established world-known brand and customer loyalty. Similarly to Samsung, Apple is also well-known company and advantage of that is that it is still growing company and has tendency to expand even more. According to the aspects described above, there are no major disadvantages related to Apple, which makes this company looks better comparing to others.
Although it took Samsung some time before getting into the smartphone business, in 2011 the company came in with the introduction of its Android based Galaxy smartphones. The company was still able to catch up more than anyone else to match up with Apple. Instead of recreating Apple’s products the iPhone, Samsung used another dimension to position its product by differentiating with features, larger screens and aggressive marketing campaigns. Samsung was willing to spend more on research and development in order to be able to produce exactly what consumers
However, the outlook for Samsung in the future looks bleak due to her recent loss of a high profile patent infringement rights to Apple. This had led to it been fined and the banning of some of its products in the US. This has the potential to reduce sales in the future.(New York
A primary marketing issues and problems Samsung has is that one of their phones, Galaxy S7 exploded and by doing so the company started to lose some of its market share and mindshare. Also, Samsung does not own its own platform like Apple and Google. Samsung is just a phone version of Dell.
The company has been growing its sales by 17.45 percent yearly for the last 5 years, to a total of 141.21 Billion Dollars by end the of year 2012 (Bloomberg, 2015). If they keep this pace, they are going to meet their sales goal by 2021. Samsung move from 49th place in 2008 to 4th place 2012 in top global brand, and still remaining now, making one of the company’s goals already achieved (Rankingthebrands.com, 2015).
The Galaxy S6 and S6 Edge received positive reviews from analyst, who praised the devices ' upgraded build quality over the earlier models . However, Samsung 's decision to remove the ability to stretch their storage or remove the battery was panned as being likely break off to power users, and the S6 Edge was also sweeped for not
After 2004 the company started to fall shortly. The revenues from the business unit dropped from $28billion to $12billion in a period of 2006 to 2008. The number of mobile phone sold during the period dropped from 217 million to 100 million. Apple iPhone became the dominating brand. Recession of 2008 led to excess and useless inventory.
Samung galaxy s6 and s6 edge has helped samsung to be at top level in the smartphone market and approximately 12 million sale of samsung s6 and s6 edge mobile in March quarter. The recent Samsung Galaxy S6 launch has held Samsung retain its footing as the world’s leading smartphone player, a new survey has revealed.Market research firm TrendForce has declared its final numbers for the first quarter of 2015, as well as its expectations for Q2.It makes great reading for Samsung, which apparently boasts 27.8 per cent of the smartphone market, with Apple holding firm in second on 19.9 per cent.The market analysts have suggested the South Korean firm’s dominance is largely driven by the new Samsung Galaxy S6 and Samsung Galaxy S6. [The] Galaxy S6 and S6 Edge have greatly captured consumers’ attention in the first quarter, “The S6 Edge in particular has created a buzz with its main feature – a touch screen that curves to both sides of the phone.”Despite the
According to The Verge, Apple’s final arguments went as follows,"Steve Jobs shocked the world" with the iPhone, changing the trajectory of the mobile industry. He framed Samsung, however, as a company with a stagnant line-up of products that faced faltering sales after the introduction of Apple's device. Samsung's solution? A three-month dash to design what would become the original Galaxy S. "In those three months Samsung was able to copy and emulate" the "world's most successful product," he said. "They have spent a billion dollars mimicking our designs and holding it out to the world so the Apple design is no longer seen as unique. It took Apple five years to create this revolution, and Samsung took three months to copy it. That's truth, and that's simple, clear, and undisputed." (Bishop 2012) Samsung argued that Apple was trying keep all competitors out of the game unfairly. One of Apple’s major claims
It took Samsung a while to admit there was a problem with is a new product and finally issued a voluntary recall of the note 7 on the 2nd of September 2016 (Czarnecki, 2016). The replacement Note 7 phones given to people that had returned their unit after it issued a recall was also revealed to had exploded which led to a second global recall by Samsung. This fiasco was indeed a public relation nightmare that Samsung handled badly (Sullivan, 2016). It ultimately led to the loss of $19B in its stock value (Milanesi, 2017).
Turning to Samsung’s current company operations, specifically, the second failed release of the Galaxy Note 7, which has led them to terminate production of the smartphone, and has also led to falling shares and a plummeting market value, according to Business Day (2016). Also, according to Business Day (2016) early speculation approximates a worst case scenario loss of $5 billion in operating profits from the termination of production, a loss to Samsung through 2017. The ramifications and the domino effect of the twice released, and twice failed Galaxy Note 7, indicate now, that the company will face more challenges than initially anticipated, especially their brand image. The Galaxy Note 7 was released for the upcoming holiday season and was expected to compete against Apple’s iPhones and other premium device (Business Day, 2016).
The technology enterprise has always been a ‘dog eat dog world’ especially in the mobile phone sector. Apple has long been the top dog holding over 50% of the market share in America; however, overseas that has not been the case. Samsung now holds a 23.3% world market share, which dwarves Apple’s 14.7% that had dropped from 18.2% in just the last quarter according to IDC (International Data Corporation). When determining what is the right phone for you the most important factors to consider are the display, because you are constantly looking at it, the operating system, because it is what the phone operates on to give you the default graphical display, and of course the price because money trees don’t just grow in anybody’s backyard. After a thorough investigation of the Samsung Galaxy S8 and the Apple iPhone X, the superior display, more optimized operating system, and the significantly cheaper price tag allow the Galaxy S8 to surpass the iPhone X and become the top dog.
It also not estimated how important the transition to smartphones would be. This is also one of part why company not going through success path. Nokia was earning around 50% of profits in the mobile-phone industry in 2007, and major part of profits were not coming from smartphones. Diverting a lot of resources into a non-profitable products is also risky.