Apple And Samsung: Here’s What Happens When The Money Begins To Run Out

PixoBebo ^ | Friday, December 26, 2014 | Kate MacKenzie

[Star Traveler]

You knew this had to happen. While Samsung and other Android smartphone vendors bask in the glory of marketshare vs. Apple’s iPhone and iPad, it’s Apple that walks away with most of the profits. Without profits, tech companies have to tighten their belts, cut back on R&D (research and development), close stores, and reduce the product line.

Guess which high profile tech company is doing all that?

If you guessed Apple, you’d be so far off the mark that you’re probably in need of public assistance for watching too much Faux News and reading Business Insider. It’s not Apple. It’s Samsung.

The Korean giant’s profits have been on the wane for a year, matched in dropping velocity only by the mostly flatlined stock price. Samsung has cut back on the number of smartphone and tablet models, reduced spending, laid off employees, and now it’s in the process of shuttering a flagship store.

[T-Bird45]

Good summary of marketing basics that many companies lose sight of on the facts of product/profit life cycle. Failure to renew with product and market development is quite often the cause for the money running out.

[adorno]

Guess which high profile tech company is doing all that?

It’s not Apple. It’s Samsung.

Eventually, even the Apple loyal will begin to realize that, they're paying a premium price for what most others get at much lower prices.

Loyalty to a brand makes no sense, and loving a company makes even less sense. Quality is nice, but, like some people here have already stated, good enough is all that's needed, especially with gadgets that are meant to become obsolete in 1-2 years, or that people will feel the "want" (not the 'need'; the 'want') to upgrade to the latest-and-greatest.

When (not if, but when) Apple reaches the point where their loyal fan-base begins noticing how they didn't really need the iPhone to feel cool, then, Apple will be in worse shape than Samsung; Samsung is a more diversified company than Apple, where Apple's fortunes are mostly dependent on one device, that being the iPhone. But, writers as the one who wrote that article, don't really understand that companies need to worry about long-term success, rather than short-term WOW!-type figures.

[Wuli]

Is not Japan Inc. (and next all of East Asian “Tigers”) an example of the pending crisis of racing always just for market share, versus profits?

[Salgak]

Uh, why do you EXPECT system integration between Android and Windows ? Hint: Google and Microsoft are entirely separate corporations with their own dev teams.

And in any case, integration is all about the API, not the OS. . .

[newfreep]

Jobs was indeed a very wise and a true, free market capitalist despite your wailings.

Jobs molded Apple into a high profit margin enterprise while eschewing market penetration. This led to Apple becoming the WEALTHIEST CORPORATION IN THE WORLD.

Now THAT is free market capitalism!!!!

Your comments were simple explanations of his “toys” - and exposed your lack of understanding of Business 101 - developing a strategic plan to maximize corporate weath for the owners.

Obviously, people who owned Apple stock became very wealthy...via free market capitalism of Apple.

[jsanders2001]

Are people being ripped off by some of companies that produce hi-tech gadgets?

You be the judge:

http://www.consumeraffairs.com/home_electronics/samsung_tv.html

http://www.worldcrunch.com/tech-science/built-in-obsolescence-are-we-being-scammed-by-electronics-manufacturers-/iphone-smartphone-electronics-appliances/c4s9796/#.VJ3Mtt_2wIA

[Gator113]

I have owned my iPhone 6 for about 2 weeks and I love it. My wife’s DroidX finally died, so she now has my 2 year old iPhone 4S and she is very happy.

I put an orange and black Otter Defender case on my iPhone6, so now I look very cool too. LOL

Heck, its a phone, by what you like. Now if Porsche wasn’t so expensive, I would already look even cooler than I already do. ;>)

[dennisw]

Steve Jobs always chose to maximize unit profit margin vs gaining market share. He was very wise and a true, free market capitalist.

So his ultra liberal widow is poised to rightfully blow most of the 10 billion she inherited on toxic liberal sludge a la the Bill and Melinda Gates Foundation

I am filing this one under: "All is vanity"

[outofsalt]

"Kate MacKenzie: Apple leghumper emerita."

She won't even get a reacharound from their homo CEO.

[Gator113]

LOL.... this should frost your behind. I just upgraded to an iPhone 6 and managed to keep my “unlimited data” plan for my line. It costs me nothing more than my normal monthly service to text, call or use the internet.

—unlimited data isn’t available to new users but they grandfathered me in.

BTW.... money isn’t flying to of my pockets... I actually remove it myself. LOL

[Star Traveler]

Have you finally given up on the idea that Apple is due to collapse any time now? ... LOL ...

[Wonder Warthog]

"Jobs was indeed a very wise and a true, free market capitalist despite your wailings.

Facts aren't wailings.....

"Jobs molded Apple into a high profit margin enterprise while eschewing market penetration. This led to Apple becoming the WEALTHIEST CORPORATION IN THE WORLD. Now THAT is free market capitalism!!!!

As I said....of the John D. Rockefeller type...a monopolist rather than a competitor.

"Your comments were simple explanations of his “toys” - and exposed your lack of understanding of Business 101 - developing a strategic plan to maximize corporate weath for the owners."

WHAT strategic plan?? What Jobs succeeded at was generating NEW market segments, not by competition within existing ones. The Apple PC was and remains a small niche player in the PC market.

"Obviously, people who owned Apple stock became very wealthy...via free market capitalism of Apple."

As did those who invested in the Standard Oil of old "John D."

[jaz.357]

For MY money, Samsung is the best on the planet!

[dennisw]

Samsung is doing great and will put CRApple out of business. It has superior non-faggy non-liberal management. Just extrapolate out a few years to when CRApple becomes an exotic niche brand in the next downturn.

Sell!!!

[roadcat]

But seriously folks, I love Samsung monitors, two of the three hanging off this vintage Mac CPU are Samsung, and there's another one on the newer Mac (heh heh) elsewhere in the house.

All these stupid wars about manufacturers, and people who won't consider having a product by the competition. Dumb. I also have a Samsung monitor on my Mac Mini, a really great pairing. I tried a couple other monitors from others and they sucked, not allowing a correct connection, so I returned them. Samsung has a great thing going with their monitors. I also have a Samsung sound bar and woofer - works great as an entertainment center with the monitor and Mac.

[roadcat]

Obviously, people who owned Apple stock became very wealthy...via free market capitalism of Apple.

I bought Apple stock when it was in the teens and twenties. Split multiple times. I couldn't convince others to buy, because they were so convinced Apple was going to disappear. They're very angry people now.

[papertyger]

Steve Jobs always chose to maximize unit profit margin vs gaining market share. He was very wise and a true, free market capitalist.

Amen brother.

It always pisses me off that people treat the private sector bureaucracy that is the American corporate culture as if they are the Paladins of Capitalism.

[CitizenUSA]

I disagree with your assessment of Jobs. I think you’re confusing the free market with open technology. The two things are not the same. Agree or disagree with Apple’s “closed and proprietary” marketing strategy, but don’t try to claim it isn’t capitalistic. It is. It’s just that Apple decided long ago to be the Lexus of the computer market. One doesn’t have to sell cheap to the masses to make huge profits as part of the free market.

[CitizenUSA]

Before people reply telling me that Apple sells crap at high margin, I should add that whether Apple is hype or not, there are only two things that matter: #1 Apple’s customers believe they are getting good value for the money spent, and #2 Apple is able to make and sell its products at a profit.

[adorno]

Have you finally given up on the idea that Apple is due to collapse any time now?

Apple won't be disappearing any time soon. It will take time. Palm and RIM and Nokia, were the brands that could do no wrong, and they had very big and loyal followings. Apple is bigger than any of those companies every were, so, it will take Apple much longer to come back down to Earth, and become just another tech company, with a market cap no bigger than HP or Dell or Samsung.

Apple is still, basically, a one-trick pony, and the iPhones will eventually start to crumble, when people realize that they don't need to pay premium prices for things that are costing hundreds less to other people.