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Topics: Marketing, Brand, IPhone Pages: 6 (1907 words) Published: November 16, 2013
 Competitive advantages held by Samsung and Apple Corporations

Table of contents
1. Introduction2
2. Body2
3. Conclusion7

1. Introduction
Samsung and Apple Corporations are two main popular mobile brands in the worldwide market nowadays. The essence of battles between Apple and Samsung is a battle of technologies. Both companies compete for technical innovation and aim at providing the most practical and convenient mobile software to entertain consumers around the world (Harriet, 2012). Being two most popular mobile phone brands, both Apple and Samsung hold some competitive advantages over each other, which will be demonstrated in this essay. First of all, competitive advantages held by Apple will be demonstrated. Secondly, competitive advantages held by Samsung will be illustrated. Afterwards, by comparing their competitive advantages, I can conclude what these two companies are lacking and how they should catch up with each other in order to achieve sustainable development in the future. Finally, this essay will end with some suggestions for Apple and Samsung to become more competitive in the electronic industry. 2. Body

According to David (2011), one main competitive advantage held by Apple Corporation is that Apple manufactures multiple products and integrates all its products under one brand--Apple. In order to dominate the market more profoundly, Apple has provided iPhones, iPads, Mac computers and other accessories (David, 2011). Currently, having an iPhone represents one’s social status and consumers who purchase iPhone products mostly seek for satisfaction of their vanity. People surrounding them are using Apple mobiles; therefore, they will try their best to get one too. However, it is argued that this competitive advantage may wane in the future with increasing emerging of various new smart phones manufactured by Blackberry, Samsung, and so on. Besides iPhones, Apple Corporation also maintains competitive advantage in relative with its personal computer sales. It is reported that in 2011, Apple’s personal computer sales listed in the third place in American consumer market. On the other hand, Apple is considered to be a leading seller of tablets because of increasing popularity of its iPad. For example, during the first two quarters of 2011, Apple sold 9.52 million iPads, which were only released for about one year. Distribution of Apple’s product line sales can be reflected in below figure 11. Figure 1. Total Apple’s sales revenue by product lines

The figure above shows that Apple’s sales revenue comprises of four different product lines, including Mac personal computers, iPods, iPhones and iPads. From 2004 to 2010, iPhone maintained the fastest growth among four different product lines. By the end of 2010, iPhone contributed over $5 billion to overall sales revenue of Apple Corporation. The second largest percentage of sales revenue is occupied by Mac personal computers. The product line of iPods ranks the third place in promoting total sales revenue of Apple. In recent years, Apple Corporation has been experiencing varying growth rate in its four product lines. Specific growth percentage is presented in below figure 22. Figure 2. Growth rate of Apple’s different product lines in 2012 and 2013

Figure 2 also shows that iPhones contribute the most to Apple’s overall sales revenue, while iPads maintain the highest growth rate in regard with its sales revenue.

The above figure implies that Apple has built up a competitive advantage by promoting different product lines to attract consumers around the world. On the other hand, Samsung also conveys some competitive advantages that ensure its leading position in electronic product industry around international consumer market. According to Gravity (2012), Samsung’s operating profits achieved at over $4 billion in the first quarter of 2012, because of the releasing of its Smartphone...

References: Administrator, (2012)"What Samsung 's success means for Apple" Available at:
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David, M., (2011)"Apple 's competitive advantage: Multiple products that integrate as one" Available at:
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Gavrity, (2012)"Samsung: supply chain-driven leadership" Available at:
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Harriet, A., (2012)"Apple vs
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Jessica, E.L., Lorraina, L., Juro, O., (2013)"Apple finds it difficult to divorce Samsung" Available at:
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Tim, W., (2013)"Why Samsung beats Apple or perhaps vice versa" Available at:
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Zach, E., (2013)"The biggest advantage Samsung has over Apple and other Smartphone vendors" Available at:
(Accessed on 4 November 2013)
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