How
Samsung Galaxy react to Apple I-Phone.
How Apple
attracts customers to keep purchasing iPhone Sales.
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.
http://www.youtube.com/watch?v=1aVYZqVi7ys
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.
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