apple vs samsung.doc

8/11/2019 Apple vs Samsung.doc

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Apple vs Samsung - Who Will Win?December 04, 2013

The Korean company with 3 CEOs recently overtook pple by reven!e an" nowserio!sly threatens it in the post#$obs era%

2 &!estions'

1% (o who act!ally is the best company to"ay)

2% *ho is +oin+ to win +oin+ orwar")

-et.s "o a &!ick comparison on pro"!ct innovation, CEOs an" lea"ership, bran" an""esi+n, ecosystem, +ivin+ c!stomers what they want, an" proits an" +rowth% /aveincl!"e" my view at the bottom%

nnovation

Now neck-and-neck?

/istorically this was a no#brainer as pple leapro++e" everybo"y with its new pro"!ctbreakthro!+hs' io", ihone an" ia"% /owever, since Tim Cooktook over as CEO in2011, the char+e is that pple has become more o an iterator rather than an innovator%

or years, the pple r!mor mill has orecast wron+ly the imminent arrival o thei*atch an" the iT5, while (ams!n+ has bro!+ht these pro"!cts to market, with the6ala7y 6ear an" (mart T5% 6oo+le too is p!shin+ ahea" with new pro"!ct cate+ories,

like the 6oo+le 6lass smart#+lasses%

$on+#Ky!n (hin, the (ams!n+ resi"ent8CEO who r!ns its mobile "ivision, sai"'9nnovation is what will +et cons!mers to b!y new "evices: The 6ala7y (4 haseat!res !ni&!e to (ams!n+ like ir 6est!re that "etect han" +est!res% n the process o"evelopin+ an" makin+ the 6ala7y (4, we have ile" aro!n" 120 patents relate" to !serinterace an" sotware% *e;ve also hire" a n!mber o sotware en+ineers rom n"ia,

s this innovation strate+y workin+)


2/11

nterbran";s ?oon $i#h!n ar+!es that its more abo!t positionin+' 9robably (ams!n+knows better than anyone that 6ear will not become a mainstream pro"!ct% (till, theyare tryin+ to convey the messa+e that ;we are irst with s!ch technolo+y,; which theyhope will help b!il" their bran" as an a"vance" technolo+y irm%=

@y contrast, the in+erprint sensor !ni&!e to the new ihone As has been well#receive"an" is tho!+ht to have been well#e7ec!te"% n what pple claims to be 9the mostorwar"#thinkin+ ihone ever=, the ihone As is also the irst smartphone to market witha B4#bit processor, the , which ironically is man!act!re" by (ams!n+%

n !nlikely (ams!n+ a"mirer is ormer pple CEO $ohn (c!lley, who le" the irmwhile (teve $obs was p!she" o!t in the 1>0s% n a piece welcomin+ Oh#/y!n Kwoninto the 2013 T?E 100, (c!lley wrote'

9ro"!ct "esi+n, marketin+ an" comple7 s!pply#chain mana+ement are the triecta os!ccess in cons!mer electronics% E7cellin+ at all o them sim!ltaneo!sly is a rare eat,m!ch like throwin+ a no#hitter in baseball% kio ?orita "i" it at (ony with the *alkman

an" (ony Trinitron% (teve $obs "i" it with the ihone an" ia"% *ith the (ams!n+6ala7y, Oh#/y!n Kwonoins those b!siness +iants%Kwon.sirst principles olea"ership are remarkably simple an" clear% 6ala7y phones have a si+nat!re "esi+neat!re' bi+, bea!ti!l, hi+hest#"einition screensF an inte+rate" s!pply chain allows ora amily o pro"!cts at more price points than competitors.F an" their bran" a"vertisin+is bol", taste!l an" e7ec!te" with a cheeky sel#coni"ence e&!ale" only by pple.s%=

pple.s recent GThis s O!r (i+nat!re. a" is very m!ch a restatement o the core $obsphilosophy' its strapline states, 9*e simpliy, we perect, !ntil everythin+ we to!chenhances lie%=

(o it seems we have a battle between perection an" +ettin+ it o!t new pro"!cts ast an"reinin+ them later% it contin!es on c!rrent pro"!ct eat!re traectories, then wo!l"avor (ams!n+%

@!t what pple ans an" stock analysts alike are cryin+ o!t or are bol", new pro"!ctcate+ories which co!l" rest the +ame back in pple.s avor%

CEO H -ea"ership

Samsung Gets The Medal: 3 C!s vs Tim Cook
http://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwon


3/11

Io! may be s!rprise" to learn that (ams!n+ has not !st one b!t three CEOs% n postsince $!ne 2012, Dr% Oh#/y!n Kwonis 5ice Chairman H CEO% Then in ?arch 2013,(ams!n+ also promote" two o its presi"ents to CEO' most si+niicantly or this"isc!ssion, $on+#Ky!n (hin, who hea"s !p (ams!n+.s mobile "ivision, an" also @oo#Ke!n Ioon, hea" o the appliances "ivision% They "o still both report toOh#/y!n Kwontho!+h, so he maybe the more "ominant player% s is common in the c!lt!re o Koreancompanies, (ams!n+ hasn.t provi"e" anythin+ more than minimal bios or thesee7ec!tives, so we "on.t know a h!+e amo!nt abo!t them beyon" a han"!l o interviewsthat they have +iven over the years%

*e "o know that beore he become CEO, Kwonoversaw (ams!n+;s componentsb!siness, which makes "isplays, chips, memory, processors, etc% Kwonhelpe" lock"own one o his "ivision;s bi++est c!stomers, pple% pple !ses a lot o (ams!n+components in its mobile "evices% Jn"er Kwon, (ams!n+ became the secon" lar+estchip maker in the worl"%

?obile chie $on+#Ky!n (hin has been the most o!tspoken, tellin+ analysts last monththat (ams!n+.s tablet b!siness is +rowin+ rapi"ly an" the company aims to topple ppleas the bi++est maker o tablet comp!ters too% /e is e&!ally ambitio!s or the (ams!n+

bran", sayin+, 9O!r pro"!ct innovation an" marketin+ strate+y have ma"e (ams!n+ theworl";s most preerre" smartphone bran"% ow we;ll move rom the most preerre"

bran" to become one o the worl".s lea"in+ aspirational bran"s%=

t @!siness nsi"er;s 6TO Conerence, Davi" E!n, e7ec!tive vice presi"ent o

(ams!n+;s Open nnovation Center, she" some li+ht on how the company has been ableto see s!ch +reat s!ccess "espite s!ch heavy "evotion by pple ans an" c!stomers'9(ams!n+ is a very entreprene!rial story% The company set lar+e +oals or itsel an" has

been bol" in its e7ec!tion%= /e a""s, 9(even years a+o there was no ihone or (ams!n+6ala7y phone% t was all abo!t okia an" ?otorola% t takes entreprene!rial i"eas an"e7ec!tion% The lea"ers at (ams!n+ are people who have risen an" ma"e their mark by

bein+ entreprene!rial%=

n" it is still in the sha"ow o the visionary $obs that Tim Cookis c!rrently !"+e"%Cookwas a very competent lo+istics man an" COO, b!t as $obs himsel e7presse",9Timis not a pro"!ct person=% see him as a Gproessional mana+er. who risks

mana+in+ processes rather than p!ttin+ the ne7t "ent in the !niverse% /e has "one some
http://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/tim-cookhttp://www.worldofceos.com/dossiers/tim-cookhttp://www.worldofceos.com/dossiers/tim-cookhttp://www.worldofceos.com/dossiers/tim-cookhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/oh-hyun-kwonhttp://www.worldofceos.com/dossiers/tim-cookhttp://www.worldofceos.com/dossiers/tim-cookhttp://www.worldofceos.com/dossiers/tim-cook


4/11

+oo" thin+s, like improvin+ internal collaboration an" corporate +overnance, b!t he isnot the +reat showman like $obs an" the !ry is o!t on him%

t will be interestin+ to see the impact ne7t year when @!rberry CEO n+ela hren"tsoins pple as (5


5/11

(ams!n+ smartphones are broa"ly comparable, eat!re#or#eat!re, with competitorslike /TC, (ony, -6 an" now okia, so why has it become so "ominant) bi+ part othe answer lies in its sheer marketin+ m!scle L (ams!n+ spen"s a bi++er ch!nk o itsann!al reven!e on a"vertisin+ an" promotion than any other o the worl";s top#20companies by sales L A%4P, accor"in+ to Thomson


6/11

(ir $ony ve, (enior 5ice resi"ent o Desi+n, keeps the $obs "esi+n obsession alive atpple% /is bio+rapher -ean"er Kahney recently calle" him the 9so!l= o pple, a""in+,9ve has a ma", total, one#h!n"re"#an"#ten#percent commitment to makin+ the best

pro"!cts h!manly possible%= $onyonce lew to $apan to watch a swor"#maker or+e akatana, in his &!est to make the ?ac@ook ir even thinner% /is remit has now beene7pan"e" to sotware as well as har"ware, lea"in+ to the latter, cartoon#like an"+enerally well#receive" iO( ihone sotware !p"ate rolle" o!t in (eptember%

/owever, now that nearly all smartphones have an all#to!chscreen ront, the "ierencesbetween them are less strikin+% (ams!n+.s c!rrent la+ship the 6ala7y (4 in someaspects has a less polishe" look than the ihone As, with a polycarbonate plastic

backin+% /owever, it has a sin+!lar "esi+n eat!re' bi+, bea!ti!l, hi+hest#"einitionscreens, that "war the ihone an" its 9


7/11

system% (o here pple.s obsession with control "oes pay a "ivi"en" or or"inary !serswantin+ stable an" int!itive "evices%

rincipal CEO Oh#/y!n Kwon has p!blicly acknowle"+e" that this is a weakness an"important area o "evelopment or (ams!n+' 9 partic!lar oc!s m!st be +iven to

servin+ new c!stomer e7perience an" val!e by stren+thenin+ sot capabilities insotware, !ser e7perience, "esi+n, an" sol!tions%= /e also believes that to sec!re an 9anabsol!te lea"= the company, 9m!st have "ominance over new technolo+y an" +lobalmarkets=%

$ohn (c!lley a""s, 9s (ams!n+ b!il"s a camp!s in (ilicon 5alley, all eyes will be onKwon to see i the CEO with a h%D% rom (tanor" can be as s!ccess!l with sotwareas he has been with har"ware%=

-ookin+ at b!yers o new smartphones, the above chart shows that not many !sersswitch rom pple to (ams!n+, at only 11P% This is critical to pple.s lon+#term

s!rvival since pple !sers are stickin+ with iO( an" not "eectin+ to (ams!n+% pple ishavin+ abo!t one#thir" o its !sers comin+ rom n"roi"% t is interestin+ to note thatsimilar to all b!yers irst#time smartphone b!yers avor (ams!n+ by abo!t a three toone mar+in, appro7imately BP vs% 2P, over pple%

pple still ahea"%

6ivin+ C!stomers *hat They *ant

(ams!n+ wins the me"al%

C!stomers within pple.s walle" +ar"en broa"ly +et what they want in terms o aseamless !ser e7perience across ihones, ia"s an" ?acs, b!t they have a m!ch morerestricte" choice when it comes to variations o new "evices% There is only one top#en"ihone the As, an" only a bi+ or a small ia" the ia" ir or the ia" ?ini% (teve$obs amo!sly like" to make these kin"s o "ecisions or c!stomers rather than botherthem with a con!sin+ array o options%

@y contrast, (ams!n+ makes a m!ch wi"er ran+e o "evices in all shapes an" siNes, at aran+e o price points% They can even +o bi++er than the 6ala7y (4, with a 6ala7y otesmartphone known as a 9phablet= that bl!rs the "istinction between phone an" tablet%

(ams!n+ also makes a ran+e o hybri" Cs that !se tablet an" laptop, as well as T5s,kitchen appliances an" the new 6ala7y 6ear smartwatch% The bi++er screen in
http://www.worldofceos.com/dashboard


8/11

partic!lar seems to be the bi++est "raw over pple, altho!+h it is somethin+ that ppleis likely to correct with the la!nch o a bi++er ihone B in 2014%

roits H 6rowth

G%owth now with Samsung so wins the medal$ "ut (mas showdown ahead

The most recent ort!ne A00 6lobal rankin+s o worl"wi"e companies base" onreven!e in their iscal years en"e" on or beore ?arch 31st, 2013 shows that (ams!n+toppe" pple with reven!e totalin+ Q1>%B billion, compare" to Q1AB%A bn% /owever,with Q41%bn in proit, pple was beaten only by E77on?obil% This was more than"o!ble (ams!n+.s Q20%B billion ann!al proit%

This mi+ht be chan+in+ L this +raph rom @!siness nsi"er shows that, or the last two&!arters, (ams!n+.s proits were act!ally hi+her than pple.s% /avin+ settle" into a

pattern o releasin+ new ihones an" ia"s in (eptember8October, pple is now hi+hlyreliant on the holi"ay &!arter in R4 L altho!+h Tim Cookmay have a point when hesai", 9 think it.s +oin+ to be an ia" Christmas%=

or now, pple.s ihone b!siness is hol"in+ !p well L it sol" 1A0 million ihones in itslast iscal year en"in+ in (eptember, as well as 1 million ia"s% n"ee", pple can stillclaim 0P o the proits in the smartphone sector% The +loss has come o sli+htly o(ams!n+.s sales machine L it ell ar short o initial estimates that it wo!l" sell 100million 6ala7y (4 !nits, an" it is instea" now pre"ictin+ o 100 million total 6ala7y (an" ote series phones, phablets an" tablet "evices !p !ntil the en" o the year%

pple.s share price has ha" a to!+h all rom its all#time hi+hs o Q00, altho!+h it hassince recovere" a lot o the +ro!n" as stan"s at year hi+hs o over QAB0% This is partially!ele" by r!mors that it is inally abo!t to "o a "eal to +et carrier covera+e or theihone with China ?obile, the worl".s lar+est mobile carrier an" potentially a bi+

so!rce o +rowth% @!t or me, this is a+ain an e7ample o a "eal that sho!l" havehappene" years a+o an" which has been hampere" by poor e7ec!tion% nother &!estion
http://www.worldofceos.com/dossiers/tim-cookhttp://www.worldofceos.com/dossiers/tim-cook


9/11

mark is the recent la!nch o the ihone Ac, with the Gc. bein+ vario!sly sai" to stan" or9color=, 9cheap= an" 9China=% t ha" been hope" that a lower en" mo"el wo!l" helppple to +ain share in emer+in+ markets, altho!+h is it only Q>0 cheaper that the ihoneAs an" Tim Cookhas sai" that it is a mi"#tier rather than low#tier mo"el% This "oeshowever +ive pple pricin+ le7ibility or the !t!re an", in a market s!bect to

increasin+ commo"itiNation, &!ite a"mire pple or stan"in+ irm on its hi+h proitmar+ins%

Overall' eck#n"#eck

(o overall to"ay they seem to be neck an" neck b!t "o see the +rowth o (ams!n+ tobe stea"ier an" more s!staine"% *e.re all ascinate" by pple, b!t so m!ch o what wehear t!rns o!t !st to be r!mors%


10/11

./:

yo!;re intri+!e" by the pple H (ams!n+ story%

S0A1:

(hare with rien"s who are passionate pple or (ams!n+ ans either way%

C!MMNT:

(o "o yo! think that the !t!re belon+s to pple, (ams!n+ or to someone else) Castyo!r vote an" +ive yo!r views in the comments below%

2!!W:

Do ,ollow me he%e on inked.nas brin+ to lie what.s happenin+ in the *orl" OCEOs on a weekly basis, alon+ with re+!lar lea"ership, social me"ia, career, hirin+ an"

pro"!ctivity insi+hts%

!.N:

(i+n!p or my weekly GCEO nsi"er. email at'http:44www'wo%ldo,ceos'com4ceo-inside%-signup

-----------------------

5# Steve Tappin

Chie, 6ecutive$ (in,u$ 0ost 55C C! Gu%u * 2ounde%$ Wo%ld !, C!s

www%twitter%com8(teveTappin

www%worl"oceos%com

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Steve is a personal confidant to many of the worlds top CEOs. He is the host of BBC

CEO Guru, which features indepth, ontherecord interviews with the CEOs of the!i""est and fastest"rowin" companies. #ounder Of$orldOfCEOs.com, Steve is the
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11/11

author of %he Secrets Of CEOs,which interviews &'' CEOs on !usiness life and

leadership.

Destaca"o en'

Technolo+y

n!ncia"o por'(teve Tappin(e+!ir Dear "e se+!ir (i+!ien"o

32%4015er to"as las act!aliNaciones "e(teve
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