I was in London having a hearty English breakfast on the first free morning I had after attending the Internet World and the Big Data Show a couple of weeks ago, when I suddenly overheard that Samsung's profits increased 41.5 percent in the first quarter of this year. The voice came from the television I was ignoring in a failed attempt to enjoy my free morning without thinking about technology-related matters.
Cup of tea in hand, all my attention switched from my lovely English breakfast to the news report. My working mood had been activated; I was ready to know what was going on with the big South Korean manufacturer's sales.
I have to admit that Samsung's news took me a little by surprise. I know, it shouldn't. Some of the reports I have seen lately coming from China have pointed at a strong Samsung, with high and steady sales. Maybe my surprise was based on the fact that it's hard to not see Apple rising high, as it used to be just a few years back -- more precisely, before Steve Jobs' death. Some days before Samsung's profit rise, Apple reported its first profit decline in more than a decade, and indicated no major releases until the fall. Should we admit that there is, in fact, "a before and after" Apple's iconic CEO?
A little retrospective
In 2012's fourth quarter, we were in the never-ending space of smartphone wars. According to market research firm Strategy Analytics' "Handset Country Share Tracker" report, last year's fourth quarter ended this way for Samsung and Apple: Apple's iPhone 5 overtook Samsung's Galaxy S3 to become the world's best-selling smartphone model for the first time.
Fast forward to the present
So there I was, still with my tea in hand, hearing about Samsung's 41.5 percent increase in sales in 2013's first quarter -- even before its Galaxy S4 reached the market. How did it happen? One doesn't have to be a rocket scientist to realize that one of the reasons Samsung is beating Apple is because the South Korean manufacturer is offering more options than just one smartphone, whereas Apple only has the iPhone.
The future will tell
Apple needs to offer an alternative to the iPhone -- a new device targeting a different consumer group. Apple needs to expand. At least in this case, Apple needs to look at Samsung and learn. It needs to have at least the same number of smartphones in the market as Samsung if it wants to play the upgrade game with the same number of cards in hand. If not, then Apple should concentrate on delivering a stunning upgrade of its iPhone in the fall, instead of quick ones every semester just to keep up with Samsung's pace.
There is no doubt that the smartphone arena has turned out to be more interesting than ever this year. What are your predictions and bets for the next quarter?
Samsung has a very aggressive marketing strategy and in many parts of Asia, they are really doing very well. One can easily see many Samsung smartphones with people. There may be chances that Samsung can overtake in Quarter revenues. But Apple phones are classic. And Samsung cannot beat that.
What apple needs to do now. This is much bigger than a billion dollar question. If we look at samsung it is clear they are not just gaining market share because they are cheap. Infavt samsung smart phones are priced similar to apple but the only difference is the variety of options what samsung can offer and what apple is offerin at this moment. Probablt Apple may be alreafy working on a strategy to gain the market share. They have strong proven history interms of quality products, all the need to do is to give the user a flexibility to chose among many options.
"Samsung products are quite good. But all Apple products are classic and they have their own market segment."
Precisely. And classic is always appreciated by the ones who can see the timeless beauty and value in classic products. The same applies to a car, a dress, a piece of music, a film, a piece of jewellery. Classic is classy and timeless. Always.
"Apple should not care much about Samsung, it will be big distraction."
Exactly. That's why Apple needs to concentrate on its own business and stop realising updates every time Samsung gets a new phone into the market. It's not about quantity in updates, it's about quality. It seems like someone at Apple has forgotten about that, which was Apple's mantra for a long time. Right?
That about the price difference is becoming a thing from the past. Have you seen the Galaxy S4's starting price? I posted it in one of the comments below.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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