Mobile Phone Life Cycle

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Samsung Electronics is a semiconductor mobile phone and mobile phone component manufacturer. It exists in the most dynamic end of the consumer product industry. It cannot succeed without continuous incremental improvement and without constantly updating its product portfolio. The product life cycle for its premium product the Samsung galaxy S3 is estimated to be only 9 months. This occurs because customers withhold purchasing a product for which they know is going to be updated and replaced imminently. Samsung is a conglomerate in multiple markets, with the main profit centres being mobile telecommunications and information technology manufacturing. Samsung has posted record profits in its most recent financial quarter. Samsung is a dynamic but reactionary company; it emulates innovations by other manufacturers such as Apple but it operates in a marketplace where such things are common. It manufactures components for most other manufacturers of mobiles tablets and PCs. Samsung has an adversarial relationship with Apple who is Samsung’s both Samsung’s main competitor in mobile telephony and one of its biggest customer’s. Samsung has an advantage over Apple at present in that it has the infrastructure and dynamic capability to manufacture the components required. This leaves its main rival Apple requiring Samsung’s co-operation. Samsung is seeking to increase the price which it charges Apple. Strategically this is a wise option as switching costs for Apple essentially having to retool its entire operating network and refresh its product’s. Samsung is a company that prefers to grow organically. It has been suggested that the firm engage in a purchase of Blackberry maker Research in Motion. This would be characterised as a defensive acquisition. It would be merely adding to its portfolio of assets and gaining ownership of a mobile operating system. Currently it licences the Android from Google. Samsung has a strong diverse product portfolio and is capable of...
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