How Samsung Changed the Game on Apple

The iPad is now 3 years old. Hard to believe we’ve only had tablets such a short time, given
how common they have become. It’s easy to
forget that when launched almost all analysts
thought the iPad was a toy that would be lucky to
sell a few million units. Apple blew away that prediction in just a few months, as people demonstrated their lust for
mobility. To date the iPad has sold 121million
units – with an ongoing sales rate of nearly
20million per quarter. Following very successful launches of the iPod (which transformed music from CDs to MP3) and iPhone (which turned everyone into smartphone
users,) the iPad’s transformation of personal
technology made Apple look like an impenetrable
juggernaut – practically untouchable by any
competitor. Apple the Game Changer Apple was the ultimate “Game Changer” having
dethroned Sony from its leadership position in
music, RIM/Blackberry in mobile phones and
then Microsoft/HP/Dell in personal technology.
Apple’s stock soared from $200/share to over
$700/share, and Apple became the most valuable publicly traded company on any
American exchange. But things look very different now. Despite huge
ongoing sales (iPad sales exceed Windows sales,)
and a phenomenal $30B cash hoard ($100B if you include receivables) Apple’s value has declined by 40%. In the tech world, people tend to think
competition is all about the product. Feature and
functionality comparisons abound. And by that
metric, no one has impacted Apple. After 3 years
in development, Microsoft’s much anticipated Surface has been a bust – selling only about 1.5million units in the first 6 months. Nobody
has created a product capable of outright
dethroning the i product series. Quite simply,
there have been no “game changer” products that
dramatically outperform Apple’s. Success is about more than product But, any professor of introductory marketing will
tell you that there are 4 P’s in marketing:
Product, Price, Place and Promotion. And
understanding that simple lesson was the basis
for Samsung’s successful onslaught waged upon
Apple in 2012 and 2013. Samsung did not change the game with
technology or product. It has used the same
Android starting point as most competitors for
phones and tablets. It’s products are comparable
to Apple’s – but not dramatically superior. And
while they are cheaper, in most instances that has not been the reason people bought Galaxies,
Notes, Tabs and S phones. Instead, Samsung
changed the game by focusing on distribution
and advertising!
Source : ForbesNews

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