Sunday, November 11, 2012

Why Only Samsung Builds Phones That Outsell iPhones - Businessweek

Why Only Samsung Builds Phones That Outsell iPhones - Businessweek

As a former wireless industry employee, I have always been an advocate for Samsung mobile devices (and previously Blackberry). They've always designed and manufactured elegant devices. They also had the first mobile phone + mp3 device pre-iPhone.

Samsung's only kerfuffle has been:
1. Incoherent Marketing Strategy
2. Lack of Brand Loyalty (think Sony)

But Samsung has impressed me lately. Unlike their competitors, RIM, Nokia and Motorola, who had clear advantages of taking over or aggressively competing with Apple, Samsung was quick enough to copy Apple's success, and has been rewarded with a formidable smartphone market share.

Taking their cue from Apple, Samsung quickly realized that copying is better than inventing. Why invent? Besides securing profitable patents and "first mover" fanfare, there aren't any more advantages for being first. Being first means others will learn or profit from your mistakes.

Samsung has the production scale and in-house infrastructure to compete with Apple aggressively. The Galaxy S's and Notes are just as good (if not better) than iPhone's and iPads. Samsung, and pretty much every company, lags behind Apple in terms of brand awareness and customer loyalty. Besides that, there are numerous advantages of being number two...or a late bloomer.

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