Samsung's cost of production for the S 4, and other Samsung devices for that matter, can be comparable to Apple's but half of the components for these devices are sourced out from their own plants, which means that half of the cost goes back to their bank account and that they already earn money even before they sell S 4 units. Whereas Apple sources out most of its components from others, which means that they only become profitable once they have sold the iPhone units.
Furthermore, Samsung has control over the component and the production of their units and that they are not at the mercy of third party providers who can easily leave them hanging, like in bottle neck productions. The report came from Wayne Lam who analyzed that these leaves Samsung with a bigger advantage over all other smartphone manufacturers.
http://www.youmobile.org/blogs/entry/Samsung-s-Biggest-Competitive-Advantage-against-other-smartphone-vendors?utm_medium=referral&utm_source=pulsenews The Galaxy S3 has been an overwhelming success for Samsung with a 10.4% market share in Q3 2012 http://seekingalpha.com/article/1307381-samsung-innovation-leads-to-opportunities Additionally, Samsung has pushed forward into the mobile enterprise market with the SAFE program (Samsung for Enterprise). This program utilizes the security feature called Knox and is directly positioned to compete with BlackBerry's (BBRY) enterprise products. Company background
Name| Samsung Electronics Co., Ltd.|
Industries served| Consumer electronics, Telecoms Equipment, Semiconductors, Home Appliances| Geographic areas served| Worldwide|
Headquarters| South Korea|
Current CEO| Kwon Oh Hyun|
Revenue| ₩ 201.103 trillion (2012)|
Profit| ₩ 23.845 trillion (2012)|
Employees| 221,726 (2012)|
Parent| Samsung Group|
Main Competitors| Apple Inc., Nokia OYJ, Intel Corporation, LG Display and LG Electronics, Sony Corporation, Texas Instruments Inc., Lenovo Group Limited, Hewlett-Packard Company, Sanyo Electric Co., Ltd., Toshiba Corporation, SK Hynix Inc., Western Digital Corporation and others.| Samsung Electronics Co., Ltd. is the largest world’s technology company in terms of revenues. It is the largest mobile phone maker and television manufacturer and second largest semiconductor chip producer. You can find more information about the company in its official website or Wikipedia’s article. SWOT
Samsung SWOT analysis 2013|
1. Hardware integration with many open source OS and software 2. Excellence in engineering and producing hardware parts and consumer electronics 3. Innovation and design 4. Focus on environment 5. Low production costs 6. Largest share in mobile phones and 2 place in smartphones sales 7. Ability to market the brand| 1. Patent infringement 2. Too low profit margin 3. Main competitors are also largest buyers 4. Lack its own OS and software 5. Focus on too many products| Opportunities| Threats|
1. Growing India’s smartphone market 2. Growing mobile advertising industry 3. Growing demand for quality application processors 4. Growth of tablets market 5. Obtaining patents through acquisitions| 1. Saturated smartphone markets in developed countries 2. Rapid technological change 3. Declining margins on hardware production 4. Breached patents 5. Apple’s iTV launch 6. Price wars| Strengths
1. Hardware integration with many open source OS and software. Samsung is focused on producing devices which can be integrated with most of the software and OS. This gives Samsung products an edge over Apple’s (its arch rival) devices, especially as Android and other OS are gaining market share when iOS and OS X are losing it. 2. Excellence in engineering and producing hardware parts and consumer...