Monday, January 27, 2014
How Samsung Galaxy react to Apple I-Phone.
How Samsung Galaxy react to Apple I-Phone.
Tim Cook is not Steve Jobs when it comes to leading Apple Inc. There were many doubts that whether Apple Inc can survive without Steve Jobs or not. iPhone 5S proved that Apple Inc still can be the top electronic company without Steve Jobs.
Apple Inc sold 9 million of new iPhones during first three days. Unlike the past, iPhone released two types of phone which are iPhone 5S and iPhone 5C. Tim Cook announced that “In the past, when we’ve launched a new iPhone, we lowered the cost of the old iPhone, making it more accessible to new people. But this year, we’re not going to do that.” Instead, Apple introduced a lower-cost iPhone 5C alongside the iPhone5S.
In fact, the price of iPhone 5C is not low compared with 4S which now is the cheapest option. Thus, iPhone 5C became the middle price tier and iPhone 5S became the top-shelf. Then people may wonder about why Apple released iPhone 5C, instead of downgrading the previous phone. Ben Thompson said that “It is true that Apple has been selling multiple iPhones for a few years now; right now they sell the iPhone 5 for $650/$199, the iPhone 4S for $550/$99, and the iPhone 4 for $450/$0. However, while this does capture some customers further down the demand curve, I think that the overall demand for “old” iPhones is much lower than demand for “new” iPhones.
The 5C, on the other hand, will be about as “new” as an iPhone can get, particularly with its colorful enclosures. Even if it’s priced the same as iPhone 4S or 4, it will sell many, many more units because of stronger demand.”[i]
Because of iPhone5C, customers could have cheaper brand new product and these two phone made customers to have more options to choose to purchase with different options. There is another perspective that with the iPhone 5C occupying the middle tier, the new iPhone 5S will represent your only option for a premium designed, 4-inch iPhone.[ii] The iPhone 5C makes clear separation between high to end and middle range therefore it helps prevent having the iPhone 5 stuck around. This clever strategy works and helps to succeed.
How Samsung attracts customers to keep purchasing Galaxy.
In fact, Galaxy of Samsung has always been competing with iPhone. Further, video and blog which compare them are in fashion between customers. Samsung has launched Galaxy Note series after Galaxy series has been released. For instance, Galaxy 4S has been launched on 26th of April in 2013 after Galaxy 4 has been launched and Samsung Galaxy Note 3 has been launched on 25 of September in 2013. This seems to be similar to strategy of iPhone somehow but it different as well.
The price of Galaxy 4S has not been lowered when Galaxy Note has been launched. That is to say, Galaxy 4, 4S and note the cheapest, moderate and the most expensive ones respectively. Of course Galaxy 4S and Note are functionally different but this is not as large as the difference between Galaxy 3 and 4. Such strategy of Samsung provides broad range of price therefore consumers need to make choice between Galaxy S4 and Note 3. This has benefited Samsung to large extent as well as satisfied customers. This seems to be similar to iPhone 5S & 5C mentioned earlier. Samsung also has maintained price and launched Note 3 which has resulted in new range of price.
However, this has very different aspect too. Unlike iPhone, Galaxy S and Note3 have not been launched at the same time. If so, why Samsung has not launched its products with iPhone? This maybe for protection of damage on Samsung’s sales due to iPhone. There has been interview with Seongah Won, who has worked ate marketing department of Sumsung Electronics, for 15 minutes. She is currently working in a marketing company in Korea and has received request for marketing on Galaxy mobile phone from Samsung last year. She says that Samsung has requested for marketing on a mobile phone which has not been completed yet. However, she has been in trouble as she has not been aware of the merit and drawback of the product. Even Galaxy has not finished part of program by due date therefore she has modified marketing presentation at the last moment. The developer has told her that the company has decided to launch Galaxy earlier as iPhone has been launched unexpectedly. Therefore, developers should have produced the new mobile phone which has resulted in a lot of troubles.
Based on interview with her, I think that Samsung launches products on different date of iPhone to compete with the world’s top mobile phone. Such movement, in fact, is releasing damage on Samsung’s sales caused by iPhone therefore customers continuously purchase the product as well. However, even though it is require for Samsung to compete with Apple, Samsung should develop its unique marketing that Samsung doesn't have to care about Apple. Otherwise, Samsung will walk on eggshells around Apple forever.