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    Soft2share.comSoft2share.com
    Home»Mobiles»Samsung Vs Apple
    Mobiles

    Samsung Vs Apple

    Soft2share.comBy Soft2share.com27 August 20194 Mins Read
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    Apple Inc.’s book value is unlike other corporation. It traded places with Exxon Mobil Corp. multiple times. That’s because Apple share price increased, giving it a $200 billion advantage over Exxon Mobil. On the other hand, Samsung is not just another electronic enterprise. It’s responsible for 1/6th of South Korea’s GDP. The group’s main businesses include life insurance, shipbuilding, and construction. But the most profitable business line is Samsung Electronics.

    Smartphones

    According to data from Counterpoint Research, Apple is still the leader in the premium smartphone segment, although its shipments fell by 20% YOY (year-on-year). In Q1 2019, Apple’s reduced shipments also affect the global premium smartphone segment by 8% YOY. Counterpoint Research defines premium smartphones as those, which cost more than $400. But Apple’s loss in market share only means Samsung’s gain. The South Korean conglomerate put 3 new devices on the market, instead of the usual couple in the S series. This way it covered multiple price points. Another downside for Apple is that users are now holding on to their iPhones for more than 3 years, up from the average 2 years in the past. Samsung’s advantage also comes from the significant design modifications made to the Galaxy S10 series. Another disadvantage for Apple was the fall of the Chinese market. The sluggish Chinese market caused about half of the global premium smartphone segment in Q1 2019.

    Increased Margin on iPhones

    Apple’s revenue comes mainly from iPhones and MacBooks. Sales of its iPhones surpass laptops on a 5 to 1 ratio. However, Samsung’s profit margins come from its smartphones, which accrue to about 60% of the corporation’s earnings. Although Samsung beats Apple in terms of market share, Apple sells fewer smartphones than Samsung but nets a $400 profit per unit. But Samsung’s semiconductor unit has been leading the way, increasing the company’s value by 82% during 2018, despite Samsung’s overall operating profit fell.

    In Court and Retail

    Samsung and Apple have an agitated relationship. For example, in 2011 Apple took Samsung to court arguing that the Galaxy Tab and the Galaxy S were copies of its iPad and iPhone. A week later, Samsung countersued stating that Apple ripped off its wireless technology. The companies have been suing each other ever since worldwide courts. But in 2014, Apple was awarded $929 million for its first lawsuit, which Samsung countered. Apple continued to win the second lawsuit also. What’s more, during the summer of 2014, both companies came to an agreement to drop all suits outside the USA.

    Particularities of the Apple-Samsung Relationship

    What sets apart the relationship between Apple and Samsung is that the plaintiff and defendant have a collaborating and symbiotic business relationship. That’s because Samsung, through its many subsidiaries sells parts for Apple devices it’s been accused of ripping off. Sales accrue to about $8 billion yearly. In the end, Apple is Samsung’s largest client, so in periods of high demand, it can increase orders with Samsung, and let the competitors worry about finding parts. For example, Samsung produced most of Apple’s A4 and A5 processors. But those are parts of the past. Apple now uses A8X chips in the iPad Air. The A8X is a processor made by a different company than Samsung.

    In 2014, Apple decided to carry on its business with Taiwan Semiconductor (TSM), who made a giant leap after the announcement, raising its profits by 30%. Samsung admitted that its collaborative relationship with Apple is closer to the end.

    Summing It Up

    Thanks to its size and power, Apple can easily survive without Samsung. But Samsung doesn’t need Apple as a customer either. As market competitors, both companies have brought innovative and life-changing products to the market. And both companies have spent huge amounts in justice courts. Despite any rulings, it’s fair to say that Apple and Samsung will continue to put innovative products in the hands of their consumers.

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