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Samsung Marketing Blitz Outpaced Apple in 2012
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Negotiating a lower price. Economies of scale. Efficiency of design.
Or was that a trick question?
Exactly, not all manufactures pay the same price on the same materials. Thats where negotiating comes into play.
Economy of scale is a perfect example of larger companies that are buying in bulk in long term contracts at a lower price.
Not necessarily, they have done quite extensive research on batteries to increase battery life in a smaller size. I have not seen other manufactures do quite the same or as well as Apple yet.
http://www.zdnet.com/blog/hardware/new-ipads-most-revolutionary-feature-is-its-battery/18985
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Negotiating a lower price. Economies of scale. Efficiency of design.
Or was that a trick question?
It was not. BOMs are produced not by the manufacturers themselves (Apple or Samsung) but by other companies who have no idea about economies of scale (and actual prices). They simply look at the list of components and calculate the total price. If Apple negotiates better prices then their actual costs are lower than BOMs, that's all. Efficiency of design is a different matter but I doubt that missing features qualify as "efficient design".
Both had plain old flip phones before going to Android. They just hated Apple because it was 'cool' to hate Apple. They thought all Apple users were snobs or environmental hippies with lots of money. They were just sheep following popular culture.
Now they know better.
So what we are looking at are average prices and not actual prices. Not so simple now.
Source? Samsung doesn't release sales figures. The only time they did was when they were forced to in the legal battle Apple which showed that their top end models make up a tiny fraction of their overall sales of phones. Samsung is really good at selling cheap low end phones and is dominating their competitors.... other Android manufacturers. Apple however dominates Samsung when you compare iPhones to the Samsung flagship alternatives.
It's a well known fact that the overwhelming majority of Android phones that are sold are mid to low end ones not the flagship devices like the SIII. Especially in poorer countries where Android has the large market share leads.
In more wealthy countries like the U.S. where consumers are going for the high end models, you can clearly see the huge difference in relative sales and market share figures.
Here you go. Yes, it could very well end up with both of us being involved in yet another shipped vs. sold argument, but the actual units sold number is likely close to that. Samsung won't just ship out 40 million units to retailers just to say they've shipped 40 million units.
Not only would it cost them a ton of money just for some slight bragging rights, but the retailers wouldn't buy that many units if they weren't selling to customers.
Am I the only one who finds Samsungs adverts to be mostly ****? I mean, yeah they're spending more than Apple, but they're also making less money. How much did they pay James Franco for those Note (?) adverts?
But yet, when Samsung did those two video ads parodying the entire Apple "fanboy" experience waiting in line for a new iPhone model, those ads were devastatingly effective in driving people towards buying the Galaxy S II and S III models.
People forget that Samsung is a HUGE company, and they can afford to spending large advertising dollars with TV ads, viral videos, print ads and so on out of the wazoo.
People forget that Samsung is a HUGE company, and they can afford to spending large advertising dollars with TV ads, viral videos, print ads and so on out of the wazoo.
Samsung just got served by LG!
In tonight's big Galaxy 4 reveal in NYC's Times Square, LG took a page out of Samsung's (Copysung) own playbook!
http://news.cnet.com/8301-1035_3-57574259-94/lg-spoofs-galaxy-s4-ad-with-times-square-billboard/
In tonight's big Galaxy 4 reveal in NYC's Times Square, LG took a page out of Samsung's (Copysung) own playbook!
http://news.cnet.com/8301-1035_3-57574259-94/lg-spoofs-galaxy-s4-ad-with-times-square-billboard/
Source?
I think it's pretty obvious that iSuppli doesn't use the individual wholesale pricing for each part.
You would think that would be obvious for a popular device. Yet people still cry "that is just shipped!" as if they are being shipped to a recycling center (to be "just shipped" yet again lol).
Michael
While "shipped v sold" can be a legitimate argument, the problem is that most people don't understand it. They just repeat the cliff notes version of the argument and apply it every situation where they see the word "shipped". At least when the shipped numbers don't favor their point of view.
Alternatively, some people dismiss the argument even when it does apply. Probably because of the people in my last paragraph.
Probably.While "shipped v sold" can be a legitimate argument, the problem is that most people don't understand it. They just repeat the cliff notes version of the argument and apply it every situation where they see the word "shipped". At least when the shipped numbers don't favor their point of view.
Alternatively, some people dismiss the argument even when it does apply. Probably because of the people in my last paragraph.
I think it is valid when there is a huge ramp-up in production for a new product which then fails (a la Playbook). But the successful S3, well into its life-cycle? It's kind of silly to argue that shipped is not going to equal sales.
One thing I see happening with Samsung is that they are grabbing mainstream media attention. This morning on CNN the upcoming S4 announcement was featured with excitement. I suspect after the announcement it will be even more positive. For sure they will have more to talk about than they did after the last two iPhones were released (thank God for Siri or there would have been nothing to say about the 4S).
What I have seen mostly about Apple lately in mainstream media has been negative: stock sliding, lawsuits, management shakeups, etc.
The kind of "unpaid advertising" from media that Apple used to get was in my opinion priceless. Very strange to see it start turning to Samsung. Never thought I would see that.
Michael
You just illustrated my point. Let's just forget for now the shipped vs sales thing and compare their own shipped numbers. Samsung reportedly shipped 216 million phones in 2012 and on track for many more than that in 2013. You do the math. The numbers don't lie. The Galaxy S3 sales are a small portion of their market. Samsung (and Android in general) is almost entirely composed of low to mid range devices. Basically people switching from cheap Symbian feature phones to cheap Android ones. Especially in poorer countries. That's where all the largest market share gains have been recently.
People on tech forums like to believe that devices like the Galaxy S3 are what Samsung is about but that's tech nerds on tech forums. The average person in countries like China and India with billions of people simply can't afford iPhone's and S3's but are purchasing the cheap low end phones in droves.
That's Samsung's market.
I think Apple brought it upon themselves , firstly by releasing uninspiring products and secondly by all those silly lawsuits against Samsung. I think the lawsuits only helped Samsung gain more visibility.
Source? How about common sense? Do you really think that Apple provides iSupply with information about their actual prices?
I think all the Samsung love is really good for Apple.
Samsung is becoming the new media darling, thus everything they do will be held under a microscope. The pressure will lift from Apple - they will be able to go back to the pre-2007 days where Apple is just another company.
This lull will help Apple when they release the next big thing. Everyone needs a break.
I take it you don't own a TV, never look at billboards or notice what people are holding up to their ears these days. I think you're looking at things through rose tinted glasses if you actually believe what you're writing to be true.