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The Star Malaysia - Star2 - - TECHNOLOGY -

Up to a third of the com­po­nents of the iPad and the iPhone are ac­tu­ally sourced by Ap­ple from the South Korean firm, an­a­lysts say, mean­ing Sam­sung has a lu­cra­tive fin­ger deep in Ap­ple’s pie.

“Ap­ple is de­pen­dent upon Sam­sung to a cer­tain ex­tent for their com­po­nents but Sam­sung is clearly ben­e­fit­ing from Ap­ple’s in­no­va­tion,” said Hong Kong-based Young.

“Ap­ple has al­most sin­gle-hand­edly cre­ated a new mar­ket for Tablet com­put­ers, for in­stance, which Sam­sung will cap­i­talise on. But Ap­ple’s prod­ucts are de­pen­dent upon Sam­sung hard­ware.”

Sam­sung reloaded

Sam­sung Elec­tron­ics re­fused to com­ment on its re­la­tion­ship with Ap­ple but in­sists the com­pany does in­vest in in­no­va­tion and aims to “pro­vide con­sumers with break­through technology.”

It is also look­ing for an Ap­pleesque re­la­tion­ship with its cus­tomers.

“In 2009, we re­fined our brand story in an ef­fort to bond with con­sumers more on an emo­tional level,” a Sam­sung Elec­tron­ics mar­ket­ing spokesman told AFP.

Ap­ple has the iPhone and the iPad, Sam­sung has sev­eral smart­phones and its new Galaxy Tab com­puter — wher­ever Ap­ple goes these days, it seems, the South Korean gi­ant is sure to fol­low. — AFP

“In 2010, we are con­tin­u­ing to spread our new brand story. Sam­sung is known for elec­tron­ics, but has a more hu­man mis­sion as well.

“We are clear in our goals for Sam­sung. We are cur­rently mar­ket lead­ers in a large num­ber of prod­uct cat­e­gories and busi­ness ar­eas. In the fu­ture we want to be clear lead­ers in all of the cat­e­gories and ar­eas in which we com­pete.

“We want to be a loved brand, one with a loyal base and one that is in the front of con­sumer’s minds as they make pur­chase de­ci­sions.”

How­ever, it is what can be done with the smart­phone or Tablet that counts. A smart­phone or iPhone is just a phone and an iPad or Tablet just an elab­o­rate slab of glass with­out the ap­pli­ca­tions and games that run on it.

Sam­sung’s suite of Galaxy S smart­phones and its Tablet run on Google’s An­droid, with ap­pli­ca­tions avail­able from the An­droid Mar­ket app store.

It has also pro­duced a smart­phone, the Fo­cus, which will run on the new Win­dows Phone 7 plat­form.

Ap­ple sells ap­pli­ca­tions ex­clu­sive for its prod­ucts through its own app store. Sam­sung also has its own fledg­ling app store, Bada.

Down to two

Vet­eran Ap­ple an­a­lyst Ashok Ku­mar, of New York in­vest­ment bank Rodman and Ren­shaw, be­lieves this is the true bat­tle­ground.

“In the clash of the ti­tans in this mar­ket, I be­lieve there are only go­ing to be two plat­forms stand­ing in the end: Ap­ple and An­droid,” he told AFP. “And Sam­sung will be first among equals on An­droid.

“Sam­sung has a huge com­pet­i­tive ad­van­tage in the sup­ply chain as it pro­duces up to a third of the ma­te­ri­als in smart­phones and Tablet com­put­ers.

“Purely on the hard­ware side of things, Sam­sung’s prod­ucts prob­a­bly have the ad­van­tage but Ap­ple’s app store is where it stands apart.

Ap­ple dom­i­nates the high-end mar­ket but, as the price of smart­phones comes down, Sam­sung’s mar­ket share will in­crease — es­pe­cially in emerg­ing mar­kets such as Brazil, China and In­dia, Ku­mar says.

“Ap­ple is a pre­mium prod­uct, it is not re­ally in their DNA to go for the mass mar­ket jugu­lar. This is where Sam­sung can, and will, cap­i­talise,” says Ku­mar.

“Sam­sung may not have the ‘cool’ fac­tor that Ap­ple has and Sam­sung is not re­ally in Ap­ple’s league when it comes to in­no­va­tion but they are a very, very suc­cess­ful fol­lower. They are good for each other.” — AFP/Re­laxnews


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