1. 1
A
PROJECT REPORT
On
Comparison of Market between Samsung and Apple
Company
Submitted to
BBA Programme
The Maharaja Sayajirao University of Baroda
Vadodara
April, 2016
Submitted By: Project Guide:
Abdulhusain Munpurwala Akansha Mam
2013-2016 600081 Sign.
TYBBA

2. 2
Students' Declaration
I, Abdulhusain Abbas Munpurwala, hereby declare that the report for
comprehensive project entitled "Comparison of market between
Samsung and Apple Co." is a result of my own work and indebtedness to
other work publications, references, sources, if any, have been duly
acknowledged.
Place: Vadodara (signature)
Date:

3. 3
PREFACE
Smartphones, mobile phones with more advanced computing capabilities and
connectivity than regular mobile phones, came onto the consumer market in the
late 90s, but only gained mainstream popularity with the introduction of Apple’s
iPhone in 2007. The iPhone revolutionized the industry by offering customer
friendly features suchas a touch screen interface and a virtual keyboard. The first
smartphone running on Android was introduced to the consumer market in late
2008. The smartphone industry has been steadily developing and growing since
then, both in market size, as well as in models and suppliers. By 2017, over a third
of the world’s population is projected to own a smartphone, an estimated total of
almost 2.6 billion smartphone users in the world.
So, in today's world of smartphone, the smartphone industry has achieved such a
heights at such a short period of time that no other industries can achieve.
Smartphone industry comprises of two main giants namely, Samsung and Apple
companies which are the main sellers of smartphone worldwide.
Now, how does this giants were able to get such a name in smartphone industry?
this can only be known by knowing there marketing strategy practices which is
done between them in the market. This project takes a deep understanding about
the markets of Samsung smartphone and Apple's iPhone.

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ACKNOWLEDGEMENT
Research is an excellent toolfor learning and exploration. No classroom routine
can substitute which is possible while working in real situations. Application of
theoretical knowledge to practical situations is the bonanzas of this research.
Without a propercombination of inspections and perspirations, it’s not easy to
achieve anything. There is always a sense of gratitude, which we express to others
for help and the needy service they render during the different phases of our lives. I
would like to do it as i really wish to express my gratitude toward all those who
have been helpful us directly or indirectly during the development of this project.
Firstly, I would like to thank my parents for supporting me in making this project
report and also allowing me to use excessive WiFi till late night.
I would like to thank MSU BBA for giving an opportunity to conductthe project
work and prepare its report which can help us in knowing what is happening in the
market.
I would also like to thank project guide for this project, Akansha Mam for
continuously supporting and encouraging and helping through the project.
Thank You.

5. 5
Table of Contents
Sr. No. Contents
Students Declaration
Preface
Acknowledgement
Chapter 1 Introduction to the Companies
 Samsung
 Apple
Chapter 2 Introduction about the Industry
Chapter 3 Literature Review
Chapter 4 ResearchMethodology
Chapter 5 Findings Of the Study
 Marketing Mix
 STP
 SWOT Analysis
 Marketing StrategyOverview
 Competitive Edge
 Content Marketing
Chapter 6 Conclusion
Bibliography

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1. INTRODUCTION OF THE COMPANY
With the new improvements in the technology that we use, with an
increasing population, new and new smartphones comes into existence and thus
our smartphone and mobile industry blossoms. There are many smartphone
manufacturers but out of the this two smartphone vendors are most famous and
holds half of the industry in their hands and yes! we know there name which is
Samsung & Apple. Though, Samsung is a giant corporation with lots of business
in its hands but there major focus is on their mobile industry while Samsung is all
in the mobile communication industry. Samsung having the smartphone lines like
galaxy series while the apple is having the mostfamous line of iPhone, iPad, etc.
Consumer electronics are electronics or digital equipment which is the most major
industries in the world where giant businesses are situated. This are intended for
everyday use , typically in private homes. Consumer electronics includes devices
used for entertainment i.e flat screen TVs, DVD players, iPods, etc. and home
office activities i.e desktop computers, printers, etc. The CEA i.e Consumer
Electronics Association estimated the value of 2015 consumer electronic sales at
US$220 billion.
The consumer electronics industry mostly comprises of the mobile phone industry
which is a huge hit nowadays among our generation. when any new upgrade comes
in the market, we will be the first to grab it for example iPhone 5 changed into
iPhone 6 with all only some new tweaks but then also it sold about I million units
and still counting.
So to begin with the project work, lets discuss the both companies thoroughly and
all its activities.

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APPLE
Apple Inc. is an American
multinational technology company
headquartered in Cupertino,
California, that designs, develops,
and sells consumer electronics,
computer software, and online
services. Its hardware products
include the iPhone smartphone, the
iPad tablet computer, the Mac
personal computer, the iPod
portable media player, and the
Apple Watch smartwatch. Apple's consumer software includes the OS X and iOS
operating systems, the iTunes media player, the Safari web browser, and the iLife
and iWork creativity and productivity suites. Its online services include the iTunes
Store, the iOS App Store and Mac App Store, and iCloud.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1,
1976, to develop and sell personal computers. It was incorporated as Apple
Computer, Inc. on January 3, 1977, and was renamed as Apple Inc. on January 9,
2007, to reflect its shifted focus toward consumer electronics. Apple (NASDAQ:
AAPL (http://www.nasdaq.com/symbol/aapl)) joined the Dow Jones Industrial
Average on March 19, 2015.

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Apple is the world's largest information technology company by revenue,
the world's largest technology company by total assets, and the world's second
largest mobile phone manufacturer. On November 25, 2014, in addition to being
the largest publicly traded corporation in the world by market capitalization, Apple
became the first U.S. company to be valued at over US$700 billion. The company
employs 115,000 permanent fulltime employees as of July 2015 and maintains 453
retail stores in sixteen countries as of March 2015; it operates the online Apple
Store and iTunes Store, the latter of which is the world's largest music retailer.
Key people Arthur D. Levinson (Chairman) Tim Cook(CEO) Jonathan Ive (CDO)
Luca Maestri (CFO) Jeff Williams (COO).
Apple's worldwide annual revenue totaled $233 billion for the fiscal year ending in
September 2015. The company enjoys a high level of brand loyalty and, according
to the 2014 edition of the Inter brand Best Global Brands report, is the world's
most valuable brand with a valuation of $118.9 billion.
Operating income US$71.230 billion (2015)
Net income US$53.394 billion (2015)
Total assets US$290.479 billion (2015)
Total equity US$119.355 billion (2015)
By the end of 2014, the corporation continued to receive significant criticism
regarding the labor practices of its contractors and its environmental and business
practices, including the origins of source materials.
Apple Inc. website is www.apple.com (http://www.apple.com)

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History: Founding and incorporation
Apple was established on April 1, 1976, by Steve Jobs,
Steve Wozniak and Ronald Wayne to sell the Apple I
personal computer kit. The Apple I kits were computers
single handedly designed and hand built by Wozniak
and first shown to the public at the Homebrew Computer
Club. The Apple I was sold as a motherboard (with
CPU, RAM, and basic textual video chips), which was
less than what is now considered a complete personal
computer. The Apple I went on sale in July 1976 and
was market priced at $666.66 ($2,772 in 2016 dollars,
adjusted for inflation).
Apple was incorporated January 3, 1977, without
Wayne, who sold his share of the company back to
Jobs and Wozniak for $800. Multimillionaire Mike
Markkula provided essential business expertise and
funding of $250,000 during the incorporation of
Apple. During the first five years of operations
revenues grew exponentially, doubling about every
four months. Between September 1977 and September
1980 yearly sales grew from $775,000 to $118m, an average annual growth rate of
533%.
On December 12, 1980, Apple went public at $22 per share, generating more
capital than any IPO since Ford Motor Company in 1956 and instantly creating
more millionaires (about 300) than any company in history.

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1991–97:Decline, restructuring, acquisitions
Throughout this period, Microsoft continued to gain market share with Windows
by focusing on delivering software to cheap commodity personal computers, while
Apple was delivering a richly engineered but expensive experience. Apple relied
on high profit margins and never developed a clear response; instead, they sued
Microsoft for using a GUI similar to the Apple Lisa in Apple Computer, Inc. v.
Microsoft Corp.. The lawsuit dragged on for years before it was finally dismissed.
At this time, a series of major product flops and missed deadlines sullied Apple's
reputation, and Sculley was replaced as CEO by Michael Spindler.
In 1996, Spindler was replaced by Gil Amelio as CEO. Amelio made numerous
changes at Apple, including extensive layoffs and cut costs. After numerous failed
attempts to improve Mac OS, first with the Taligent project and later with Copland
and Gershwin, Amelio choseto purchase NeXT and its NeXTSTEP operating
system and bring Steve Jobs back to Apple.
1997–2007:Return to profitability
The NeXT deal was finalized on February 9, 1997, bringing Jobs back to Apple as
an advisor. On July 9,1997, Amelio was ousted by the board of directors after
overseeing a three year record low stockprice and crippling financial losses. Jobs
acted as the interim CEO and began restructuring the company's productline; it
was during this period that he identified the design talent of Jonathan Ive, and the
pair worked collaboratively to rebuild Apple's status.

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On May 19, 2001, Apple opened the first official Apple Retail Stores in Virginia
and California. On October23 of the same year, Apple debuted the iPod portable
digital audio player. The product, which was first sold on November 10, 2001, was
phenomenally successful with over 100 million units sold within six years.
In 2003, Apple's iTunes Store was introduced. The service offered online music
downloads for $0.99 a song and integration with the iPod. The iTunes store quickly
became the market leader in online music services, with over 5 billion downloads
by June 19, 2008. On January 10, 2006, the new MacBook Pro and iMac became
the first Apple computers to use Intel's Core Duo CPU. By August 7, 2006, Apple
made the transition to Intel chips for the entire Mac productline—over one year
soonerthan announced.[76] The Power Mac, iBook and PowerBook brands were
retired during the transition; the Mac Pro, MacBook, and MacBook Pro became
their respective successors.
2007–11:Successwith mobile devices
During his keynote speechat the Macworld Expo on January 9, 2007, Jobs
announced that Apple Computer, Inc. would thereafter be known as "Apple Inc.",
because the company had shifted its emphasis from computers to consumer
electronics. This event also saw the announcement of the iPhone and the Apple
TV. The following day, Apple shares hit $97.80, an all time high at that point. In
May, Apple's share price passed the $100 mark.
In July 2008, Apple launched the App Store to sell third party applications for the
iPhone and iPod Touch. Within a month, the store sold 60 million applications and
registered an average daily revenue of $1 million, with Jobs speculating in August
2008 that the App Store could become a billion dollar business for Apple.

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By October2008, Apple was the third largest mobile handset supplier in the world
due to the popularity of the iPhone.
In June 2010, Apple released the iPhone 4, which introduced video calling,
multitasking, and a new un insulated stainless steel design that acted as the phone's
antenna. In October2010, Apple shares hit an all time high, eclipsing $300. On
January 6, 2011, the company opened its Mac App Store, a digital software
distribution platform similar to the iOS App Store. On August 24, 2011, Jobs
resigned his position as CEO of Apple. He was replaced by Cookand Jobs became
Apple's chairman.
2011–present:PostJobs era
On October5, 2011, Apple announced that Jobs had died, marking the end of an
era for Apple. From 2011 to 2012, Apple released the iPhone 4S and iPhone 5,
which featured improved cameras, an "intelligent software assistant" named Siri,
and cloud sourced data with iCloud; The third and fourth generation iPads, which
featured Retina displays; And the iPad Mini, which featured a 7.9inch screen in
contrast to the iPad's 9.7inch screen. These launches were successful, with the
iPhone 5 (released September 21, 2012) becoming Apple's biggest iPhone launch
with over 2 million preorders and sales of 3 million iPads in three days following
the launch of the iPad Mini and fourth generation iPad (released November 3,
2012). Apple also released a third generation 13inch MacBook Pro with a Retina
display and new iMac and Mac Mini computers.
This was the era of Apple where they kept their foothold properly in the market of
mobile communication industry. Kudos .

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On August 24, 2012, a US jury ruled that Samsung should pay Apple $1.05 billion
(£665m) in damages in an intellectual property lawsuit. Samsung appealed the
damages award, which the Court reduced by $450 million. The Court further
granted Samsung's request for a new trial. Apple Inc. reported that the company
sold 51 million iPhones in the Q1 of 2014 (an all time quarterly record), compared
to 47.8 million in the year ago quarter. Apple also sold 26 million iPads during the
quarter, also an all time quarterly record, compared to 22.9 million in the yearago
quarter. The Company sold 4.8 million Macs, compared to 4.1 million in the year
ago quarter.
Products
Mac
iPod
iPhone
At the Macworld Conference & Expo in January 2007, Steve Jobs introduced the
long anticipated iPhone, a convergence of an Internet enabled smartphone and
iPod. The first generation iPhone was released on June 29, 2007 for $499 (4 GB)
and $599 (8 GB) with an AT&T contract. On February 5, 2008, it was updated to
have 16 GB of memory, in addition to the 8 GB and 4 GB models. It combined a
2.5G quad band GSM and EDGE cellular phone with features found in handheld
devices, running scaled down versions of Apple's Mac OS X (dubbed iPhone OS,
later renamed iOS), with various Mac OS X applications such as Safari and Mail.
It also includes web based and Dashboard apps such as Google Maps and Weather.
The iPhone features a 3.5inch (89 mm) touchscreen display, Bluetooth, and WiFi
(both "b" and "g")

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A second version, the iPhone 3G, was released on July 11,
2008 with a reduced price of $199 for the 8 GB version and
$299 for the 16 GB version. This version added supportfor
3G networking and assisted GPS navigation. On June 8,
2009, Apple announced the iPhone 3GS. It provided an
incremental update to the device, including faster internal
components, supportfor faster 3G speeds, video recording
capability, and voice control.
At the Worldwide Developers Conference (WWDC) on June
7, 2010, Apple announced the redesigned iPhone 4. It
featured a 960x640 display, the Apple A4 processor, a
gyroscopefor enhanced gaming, a 5MP camera with LED
flash, front facing VGA camera and Face Time video
calling. In June 2011, Apple overtook Nokia to become the
world's biggest smartphone maker by volume. On October4,
2011, Apple unveiled the iPhone 4S, which was first
released on October14, 2011. It features the Apple A5
processorand Siri voice assistant technology, the latter of
which Apple had acquired in 2010. It also features an updated 8MP camera with
new optics. Apple sold 4 million iPhone 4S phones in the first three days of
availability.
On September 12, 2012, Apple introduced the iPhone 5. It added a 4inch display,
4G LTE connectivity, and the upgraded Apple A6 chip, among several other
improvements. Two million iPhones were sold in the first twenty four hours of
preordering and over five million handsets were sold in the first three days of its
launch.

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Upon the launch of the iPhone 5S and iPhone 5C, Apple set a new record for first
weekend smartphone sales by selling over nine million devices in the first three
days of its launch. The release of the iPhone 5S and 5C was the first time that
Apple simultaneously launched two models.
A patent filed in July 2013 revealed the development of a new iPhone battery
system that uses location data in combination with data on the user's habits to
moderate the handsets power settings accordingly. Apple is working towards a
power management system that will provide features such as the ability of the
iPhone to estimate the length of time a user will be away from a power sourceto
modify energy usage and a detection function that adjusts the charging rate to best
suit the type of power sourcethat is being used.
On September 9, 2014, Apple introduced the iPhone 6, alongside the iPhone 6
Plus. One year later, Apple introduced the iPhone 6s, and iPhone 6s Plus, which
introduced a new technology called 3DTouch, including an increase of the rear
camera to 12 MP, and the FaceTime camera to 5 MP.
iPad
On January 27, 2010, Apple introduced their much anticipated media tablet, the
iPad, which runs a modified version of iOS. It offers multi touch interaction with
multimedia formats including newspapers, ebooks, photos, videos, music, word
processing documents, video games, and most existing iPhone apps. It also
includes a mobile version of Safari for web browsing, as well as access to the App
Store, iTunes Library, iBookstore, Contacts, and Notes. Content is downloadable
via WiFi and optional 3G service or synced through the user's computer. AT&T
was initially the sole U.S. provider of 3G wireless access for the iPad.

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On October22, 2013, Apple introduced the iPad Air and the iPad mini with Retina
Display, both featuring a new 64 bit AppleA7 processor. The iPad Air 2 was
unveiled on October16, 2014. It added better graphics and central processing and a
camera burst mode as well as minor updates. The iPad Mini 3 was unveiled at the
same time. Since its launch, iPad users have downloaded over three billion apps.
The total number of App Store downloads, as of June 2015, is over 100 billion.
Apple Watch
Apple TV
Electric vehicles
………………………………………. and that’s all about Apple the multi
billionaire company working its way towards the top most level of its excellent
market potential.

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SAMSUNG
Samsung is a South Korean multinational conglomerate company headquartered
in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated
businesses, most of them united under the Samsung brand, and is the largest South
Korean chaebol(business conglomerate). Samsung was founded by Lee Byung
chul in 1938 as a trading company. Over the next three decades, the group
diversified into areas including food processing, textiles, insurance, securities and
retail.
Samsung entered the electronics industry in the late 1960s and the construction and
shipbuilding industries in the mid1970s;
these areas would drive its subsequent
growth. Following Lee's death in 1987,
Samsung was separated into four business
groups – Samsung Group, Shinsegae
Group, CJ Group and Hansol Group. Since
1990s, Samsung has increasingly
globalized its activities and electronics,
particularly mobile phones and
semiconductors, have become its most
important source of income.
Notable Samsung industrial subsidiaries
include Samsung Electronics (the world's
largest information technology company measured by 2012 revenues, and 4th in
market value), Samsung Heavy Industries (the world's 2nd largest shipbuilder
measured by 2010 revenues), and Samsung Engineering and Samsung C&T
(respectively the world's 13th and 36thlargest construction companies).

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Other notable subsidiaries include Samsung Life Insurance (the world's
14thlargest life insurance company), Samsung Everland (operator of Everland
Resort, the oldest theme park in South Korea) and Cheil Worldwide (the world's
15thlargest advertising agency measured by 2012 revenues).
Revenue US$ 305 billion (2014)
Net income US$ 22.1 billion (2014)
Total assets US$ 529.5 billion (2014)
Total equity US$ 231.2 billion (2014)
Number of employees 489,000 (2014)
SAMSUNG ELECTRONICS
Samsung Electronics Co., Ltd. (stylized as SΛMSUNG) is a South Korean
multinational electronics company headquartered in Suwon, South Korea. Through
extremely complicated ownership structure with some circular ownership it is a
part of the Samsung Group, accounting for 70% of the group's revenue in 2012. It
is the world's second largest information technology company by revenue, after
Apple. Samsung Electronics has assembly plants and sales networks in 80
countries and employs around 370,000 people. Since 2012, Kwon Oh-hyun has
served as the company's CEO.
Samsung has long been a major manufacturer of electronic components such as
lithium-ion batteries, semiconductors, chips, flash memory and hard drive devices
for clients such as Apple, Sony, HTC and Nokia

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Traded as KRX: 005930,KRX:005935, LSE: SMSN,LSE: SMSD
Industry Consumer electronics
Telecoms equipment
Semiconductors
Home appliances
In recent years, the company has diversified into consumer electronics. It is the
world's largest manufacturer of mobile phones and smartphones fueled by the
popularity of its Samsung Galaxy line of devices. The company is also a major
vendor of tablet computers, particularly its Android-powered Samsung Galaxy Tab
collection, and is generally regarded as pioneering the phablet market through the
Samsung Galaxy Note family of devices.
Samsung has been the world's largest television manufacturer since 2006, and
world's largest manufacturer of mobile phones since 2011. Samsung Electronics
displaced Apple Inc. as the world's largest technology company in 2011 and is a
major part of the South Korean economy. In June 2014, Samsung published the
Tizen OS with the new Samsung Z.
PresentCondition
In the first quarter of 2012, the company became the highest-selling mobile phone
company when it overtook Nokia, selling 93.5 million units compared to Nokia's
82.7 million units. Samsung also became the largest smartphone vendor as a result
of strong sales of its Galaxy SII and Galaxy Note devices.
In May 2013, Samsung announced that it had finally managed to test speed-
enhanced fifth generation (5G) technology successfully.

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In April 2013, Samsung Electronics' new entry into its Galaxy S series smartphone
range, the Galaxy S4 was made available for retail. Released as the upgrade of the
best-selling Galaxy S III, the S4 was sold in some international markets with the
company's Exynos processor.
In July 2013, Samsung Electronics forecasted weaker than expected profits for its
April to June quarter. While analysts expected around 10.1 trillion won, Samsung
Electronics estimated an operating profit of ₩9.5 trillion (US$8.3 billion)
Due to smartphone sales—especially sales of lower-priced handsets in markets
such as India and China—Samsung achieved record earnings in the third quarter of
2013. The operating profit for this period rose to about 10.1 trillion won (US$9.4
billion), a figure that was boosted bymemory chip sales to customers such as
Apple, Inc. Samsung provided sponsorship for the 86th Academy Awards
ceremony (held March 2, 2014) and, due to the use of the Samsung Galaxy Note
smartphone productby host Ellen DeGeneres in a group selfie photograph that
became an online viral phenomenon, the corporationdonated US$3 million to two
charitable organizations selected by DeGeneres
Operations
The company focuses on four areas: digital media, semiconductor,
telecommunication network and LCD digital appliances.
The digital-media business area covers computer devices such as laptop computers
and laser printers; digital displays such as televisions and computer monitors; and
consumer entertainment devices such as DVD players, MP3 players and digital
camcorders;and home appliances such as refrigerators, air conditioners, air
purifiers, washers, microwave ovens, and vacuum cleaners.

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The semiconductor-business area includes semiconductor chips such as SDRAM,
SRAM, NAND flash memory; smart cards;mobile application processors;mobile
TV receivers; RF transceivers; CMOS Image sensors, Smart Card IC, MP3 IC,
DVD/Blu-ray Disc/HD DVD Player SOC and multi-chip package (MCP); and
storage devices such as optical disc drives and formerly hard disk drives.
The telecommunication-network-business area includes multi-service DSLAMs
and fax machines; cellular devices such as mobile phones, PDA phones, and
hybrid devices called mobile intelligent terminals (MITs); and satellite receivers.
The LCD business area focuses on producing TFT-LCDand organic light-emitting
diode (OLED) panels for laptops, desktop monitors, and televisions.
Samsung Print was established in 2009 as a separate entity to focus on B2B sales
and has released a broad range of multifunctional devices and printers and more.
Products
Mobile phones
Samsung's flagship mobile handset line is the Samsung Galaxy S, which many
consider a direct competitor of the Apple iPhone. It was initially launched in
Singapore, Malaysia and South Korea in June 2010, followed by the United States
in July. It sold more than one million units within the first 45 days on sale in the
United States.
While many other handset makers focused on one or two operating systems,
Samsung for a time used several of them: Symbian, Windows Phone, Linux-based
LiMo, and Samsung's proprietary Bada.

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By 2013 Samsung had dropped all operating systems except Android and
Windows Phone. That year Samsung released at least 43 Android phones or tablets
and two Windows Phones.
At the end of the fourth quarter of 2015, the company had sold over 85 million
units giving it a global market share of 21.4 percent, keeping a gap from Apple of
almost 3 percent. Overall, the company sold 324.8 million mobile phones in 2015.
The company overtook Apple in worldwide smartphone sales during the third
quarter 2011, with a total market share of 23.8 percent, compared to Apple's 14.6
percent share. Samsung became the world's largest cellphone maker in 2012, with
the sales of 95 million smart phones in the first quarter.
During the third quarter of 2013, Samsung's smartphone sales improved in
emerging markets such as India and the Middle East, where cheaper handsets were
popular. As of October2013, the company offers 40 smartphone models on its US
website.
LCD and LED panels
Semiconductors
Televisions
Other

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*Market Share
Product
Samsung
world market share
Leading competitor Market share Year
;llDRAM 40.4% SK Hynix 19.8% Q3 2010
NAND flash 40.4% Toshiba 33.1% Q2 2010
Large-size LCD panels
(revenue)
26.0% LG Display 25.9% Q3 2010
Active-matrix OLEDs
97% LG Display 1~3% 2010
Lithium-ion batteries 18.7% Sanyo 19.4% Q1 2010
LCD monitors 18.0% Dell 12.8% 2009
Hard-disk drives 9% Western Digital 31.3% Q1 2010
Televisions
(LCD, PDP, CRT,
LED)
17.2% LG Electronics 14.8% Q3 2009
Mobile phones 35% Apple Inc. 13.4% Q3 2013
Digital cameras 11.8% Sony 17.4% 2010

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Relationship with Apple Inc.
Despite recent litigation activity, Samsung and Apple have been described as
frenemies who share a love-hate relationship. Samsung is a major supplier for
Apple – first providing memory for the early iPod devices in 2005, and Apple is a
key customer for Samsung – in 2012 its component sales were thought to be worth
in the region of $8 billion revenue to Samsung – to the point where Apple CEO
Tim Cookoriginally opposedlitigation against Samsung wary of the company's
critical componentsupply chain for Apple.
In April 2011, Apple Inc. announced that it was suing Samsung over the design of
its Galaxy range of mobile phones. The lawsuit was filed on 15 April 2011 and
alleges that Samsung infringed on Apple's trademarks and patents of the iPhone
and iPad. Samsung issued a counterclaim against Apple of patent infringement. In
August 2011, at The Regional Court of Düsseldorf, Apple was granted a
preliminary injunction against the sale and marketing of the Samsung Galaxy Tab
10.1 across the whole of Europe excluding the Netherlands. The ban has been
temporarily lifted in the European Union, with the exclusion of Germany, whilst it
is investigated whether or not the original injunction was appropriate.
On August 31, 2012, the Tokyo District Court ruled Samsung Electronics' mobile
devices did not violate an Apple patent. The caseonly addressed Apple's patent
that allows mobile devices and personal computers to synchronize or share data
with each other and is not comparable with the U.S. court case ruled on 24 August.
On October18, 2012, U.K. High Court ruled that Samsung did not infringe Apple's
design patents. Apple was forced to issue a court-ordered apology to Samsung on
its official U.K. website.
……………………………And that’s all about Samsung and Samsung
Electronics.

25. 25
2. Introduction about the Industry
Smartphone has revolutionized the way we do thing, the role Smartphone play in
today’s society is phenomenal. Today’s Smartphone is taking the role of computer,
making it possible to do a lot with this small hand held device. It has a broad use
such as sharing information, paying for products, browsing, and shopping.
Virtually every activity today has a Smartphone application for it. Mackenzie
(2011).
According to Cassavoy(2012) Smartphone can be defined to be a device that
enables the user to make telephone call and at the same time has some features that
allow the user to do some activities that in the past was not possible unless using a
computer or a personal digital assistant (PDA), such as sending and receiving e-
mails, amending an office document. Nowadays brand plays a very vital role in
consumer buying decision. While consumers usually go for a familiar brand, but
the conceptof brand transcend beyond a trademark or name. The conceptof brand
encompasses much more than trademark.
Further to Knapman (2012) consumers of Smartphone are strongly influence by
brand when it comes to choosing Smartphone. According to Ahmed (1991, p.25) a
strong and clear brand image can increase consumer confidence and convince
consumers to purchase.
The brand name signified a level of quality and consistency consumers could trust.
Thus, Quaker Oats, Ivory Soap, and Levi have instilled in consumers a degree of
confidence that their unbranded competition did not, according to The Freeman
Ideas on Liberty (2011).

26. 26
An increasing number of high –technology companies have undertaken brand-
building initiatives under the premise that these initiatives can create an asset that
generate long-term profit, e.g. Intel´s Intel inside campaign, which began in 1991.
Smartphone and mobiles are majorly included in the Consumer electronics
industry and thus the main focus right now will be on the consumer electronics
industry.
The Consumer Durables industry consists of durable goods and appliances for
domestic use such as televisions, refrigerators, air conditioners and washing
machines. Instruments such as cell phones and kitchen appliances like microwave
ovens are also included in this category. The consumer durables industry can be
broadly classified into two segments: Consumer Electronics and Consumer
Appliances. Consumer Appliances can be further categorized into Brown Goods
and White Goods

27. 27
Consumer Electronics
Consumer electronics are electronic or digital equipment intended for everyday
use, typically in private homes. Consumer electronics include devices used for
entertainment (flat screen TVs, DVD players, DVD movies, iPods, video games,
remote controlcars, etc.), communications (telephones, cell phones, e-mail-capable
laptops, etc.) and home office activities (e.g., desktop computers, printers, paper
shredders, etc.). In British English they are often called brown goods by producers
and sellers, to distinguish them from "white goods" suchas washing machines and
refrigerators. In the 2010s, this distinction is not always present in large big box
consumer electronics stores, such as Best Buy, which sell both entertainment,
communications and home office devices and kitchen appliances suchas
refrigerators. Consumer electronics stores differ from professional audio stores in
that the former sells consumer-grade electronics for private use, whereas the latter
sells professional-grade electronics designed for use by audio engineers and audio
technicians.
Radio broadcasting in the early 20th century brought the first major consumer
product, the broadcastreceiver. Later products included telephones, personal
computers, MP3 players, audio equipment, televisions (first cathode ray tube TVs,
then in the 2000s, flatscreen TVs), calculators, GPS, automotive electronics (car
stereos), video game consoles, electronic musical instruments, karaoke machines,
digital cameras and players and recorders using video media such as VCRs in the
1980s and 1990s, followed by DVDs andBlu-ray discs. Stores also sell digital
cameras, camcorders, cell phones and smartphones. In the 2000s, most products
have become based on digital technologies, and have largely merged with the
computer industry in what is increasingly referred to as the consumerization of
information technology.

28. 28
The CEA (Consumer Electronics Association) estimated the value of 2015
consumer electronics sales at US$220 billion.
Products
Main consumer electronics products include radio receivers, television sets, MP3
players, video recorders, DVD players, digital cameras, camcorders, personal
computers, video game consoles, telephones and mobile phones. Increasingly these
products have become based on digital technologies, and have largely merged with
the computer industry in what is increasingly referred to as the consumerization of
information technology such as those invented by Apple Inc. and MIT Media Lab.
Trends
One overriding characteristic of consumer electronic products is the trend of ever-
falling prices. This is driven by gains in manufacturing efficiency and automation,
lower labor costs as manufacturing has moved to lower-wage countries, and
improvements in semiconductordesign. Semiconductor components benefit from
Moore's Law, an observed principle which states that, for a given price,
semiconductor functionality doubles every two years.
While consumer electronics continues in its trend of convergence, combining
elements of many products, consumers face different decisions when purchasing.
There is an ever increasing need to keep productinformation updated and
comparable, for the consumer to make an informed choice. Style, price,
specification, and performance are all relevant. There is a gradual shift towards e-
commerce web-storefronts.

29. 29
Many products include Internet connectivity using technologies such as Wi-Fi,
Bluetooth, EDGE or Ethernet. Products not traditionally associated with computer
use (such as TVs or Hi-Fi equipment) now provide options to connect to the
Internet or to a computer using a home network to
provide access to digital content. The desire for
high-definition (HD) content has led the industry to
develop a number of technologies, such as Wireless
HD or ITU-T G.hn, which are optimized for
distribution of HD content between consumer
electronic devices in a home.
Retailing
Electronics retailing is a significant part of the retail
industry in many countries. In the United States, big-box store retailers include
Best Buy and Sears, with Best Buy being the largest consumer electronics retailer
in the country. Broad-based retailers, suchas Wal-Mart and Target, also sell
consumer electronics in many of their stores. In April
2014, retail e-commerce sales were the highest in the
consumer electronic and computer categories as well.
Some consumer electronics retailers offer extended
warranties on products with programs such as
SquareTrade.

30. 30
Marketanalysis
The Consumer Electronics sectorexperienced positive results in Q4 2015,
consistent with previous fourth quarters. The sector’s revenue grew by 21% quarter
on quarter, but declined 4% year on year. Net income also showed positive growth
sequentially, with three out of the five companies showing positive net income.
Year-on-year net income was relatively flat with two companies—Apple Inc and
Sony Corp—showing growth. Toshiba reported the sharpestdecline in net income
with net losses of US$4.3 billion this quarter. The company’s year-on-year decline
in earnings was influenced by a weakening in gross margins from 23.09% to
13.60%, as well as issues with costcontrols.
In the US, the Consumer electronics (CE) sector is improving their recycling
initiatives. Consumer electronics are the fastest declining portion of the municipal
waste stream. Recycling of CE products has increased 27% annually while the
reduction of CE products going to landfills fell 17% annually. The Internet of
Things, which is at the forefront of smart energy use and management and
renewable energy sources are leading the way to decrease e-waste.1
The Consumer Electronics Association Index of Consumer Expectations (ICE),
which measures US consumer sentiment about the broader economy, decreased 3.9
points to 168.7 in December from November 2015, but still there is some
expectation for tech spending to pick up as the economy and inventory situation
improves.
The rapid adoption of the Internet of Things (IoT) in the consumer electronics
industry is expected to drive retail revenue in the US consumer technology
industry to US$287 billion in 2016.

31. 31
The growth of the consumer technology industry’s revenue is also driven by
innovations such as wearables, virtual reality, robotics and drones. The exponential
growth of the IoT, speed of innovation and more affordable and accessible
products are driving factors.
Apple Inc posted record quarterly revenue of US$75.9 billion and quarterly net
income of US$18.4 billion. This was a 47.3% increase in revenue quarter on
quarter, but flat year on year. Fourth quarter net income of US$18.4 billion led to
65.1% growth sequentially. Year on year it was a 1.9% increase. The sharp
sequential growth was due to the seasonal nature of demand and the holiday
season. International sales accounted for 66% of the quarter’s revenue. The
‘services’ and ‘other products’ businesses increased by 19% and 43% sequentially
and 26% and 62% year over year. Apple Inc. generated operating cash flow of
US$27.5 billion during the quarter. Apple noted that forex had a 600 bps impact on
this quarters’ revenue growth. Despite the economic turbulence in China, Apple
remains bullish and predicts rising 4G penetration will continue increasing iPhone
sales. A staggering 50% of Chinese iPhone sales are said to be to first-time buyers.
Industry trends
The consumer electronics market is ever-evolving with new products being made
available on a frequent basis. Also, the evolution of existing products serves to re-
invent what is an already fully functional productand gives the consumer the
feeling that new technology is the new norm. Forexample, televisions are entering
a new era with the unveiling of the new ‘curved’ television which gives the viewer
a more ‘immersive experience’. This may re-invigorate what may be considered a
stagnating segment within the consumer electronics market and lead to an increase
in revenues.

32. 32
Another interesting development within the market is the re-introduction of game
consoles in China. In 2000, the Chinese government placed a ban on the sale of
foreign game consoles due to their perception on the effect they have on the mental
health of young people. The ban was finally lifted in 2014 which means that
retailers have the opportunity to enter a market which was not previously an option
and will also have an overall positive effect on the consumer electronics market as
a whole.
Online retailing is also a major trend which is becoming more prevalent within the
industry. Consumer electronics were traditionally purchased within electrical
retailer showrooms so that the consumer would have the opportunity to try the
productbefore purchase. However, some retailers have struggled to ‘closethe deal’
with sites such as Amazon being able to offer the same productat a significantly
lower price. In recent years, traditional retailers have struggled with this threat of
competition and have led to them placing higher importance on their own online
arm.

33. 33
Smartphone Industry
A smartphone is a mobile phone with an advanced mobile operating system which
combines features of a personal computer operating system with other features
useful for mobile or handheld use. They typically combine the features of a cell
phone with those of other popular mobile devices, such as personal digital assistant
(PDA), media player and GPS navigation unit. Most smartphones can access the
Internet, have a touchscreen user interface, with either an LCD, OLED, AMOLED,
LED or similar screen, can run third-party apps, music players and are camera
phones. Most smartphones produced from 2012 onwards also have high-speed
mobile broadband 4G LTE internet, motion sensors, and mobile payment.
The interest is understandable. Todaymore than 1.3 billion mobile phone handsets
are being sold annually, and in 2010 smartphones made up almost 20% of that total
(Gartner 2011; Ahonen 2010). In contrast to standard mobile phones,
“smartphones” are powerful computing devices offering traditional wireless voice
service as well as native software applications and, perhaps most importantly, the
ability to connectto and run a myriad of Internet-based services including email,
geo-location, streaming video, and social networking, while providing a good user
experience. Sales of smartphones are increasing almost 100% per year, and total
global sales volume is expected to surpass that of PCs by 2012 (Gartner 2010). By
collapsing the boundaries between previously distinct devices, smartphones are
subsuming sales of mobile phones entirely and, increasingly, netbookand
notebookPCs. To complicate the landscape, the smartphone is not the only device
at stake, tablets and ebookreaders are emerging as key components of the mobile
universe.

34. 34
Across all devices, total mobile revenues—including advertising, subscriptions,
handsets, applications, and so on—are forecast to surpass $1 trillion by 2014
(Gartner 2010). Given the rate at which smartphone are penetrating the market and
component prices are declining by 2015 there will be, at least, 2 billion smart
mobile devices in use globally.
Early years
Devices that combined telephony and computing were first conceptualized by
Nikola Tesla in 1909 and Theodore Paraskevakos in 1971 and patented in 1974,
and were offered for sale beginning in 1993. Paraskevakos was the first to
introduce the concepts ofintelligence, data processing and visual display screens
into telephones. In 1971, while he was working with Boeing in Huntsville,
Alabama, Paraskevakos demonstrated a transmitter and receiver that provided
additional ways to communicate with remote equipment, however it did not yet
have general purposePDA applications in a wireless device typical of
smartphones. They were installed at Peoples' Telephone Company in Leesburg,
Alabama and were demonstrated to several telephone companies. The original and
historic working models are still in the possessionof Paraskevakos
iOS, Android and Windows Phone
In early 2007, Apple Inc. introduced the iPhone, one of the first smartphones to use
a multi-touch interface. The iPhone was notable for its use of a large touchscreen
for direct finger input as its main means of interaction, instead of a stylus,
keyboard, or keypad typical for smartphones at the time.

35. 35
In October2008, the first phone to use Android called the HTC Dream (also
known as the T-Mobile G1) was released. Android is an open-sourceplatform
founded by Andy Rubin and now owned by Google. Although Android's adoption
was relatively slow at first, it started to gain widespread popularity in 2010, and in
early 2012 dominated the smartphone market share worldwide, which continues to
this day.
These new platforms led to the decline of earlier ones. Microsoft, for instance,
started a new OS from scratch, called Windows Phone. Nokia abandoned Symbian
and partnered with Microsoft to use Windows Phone on its smartphones. Windows
Phone then became the third-most-popular OS..
The capacitive touchscreen also had a knock-on effect on smartphone form factors.
Before 2007, it was common for devices to have a physical numeric keypad or
physical QWERTYkeyboard in either a candybar or sliding form factor. However,
by 2010, there were no top-selling smartphones with physical keypads.
Mobile operating systems
Android
Android is an open-sourceplatform founded in October2003 by Andy Rubin and
backed by Google, along with major hardware and software developers (such as
Intel, HTC, ARM, Motorola, LG, and Samsung) that form the Open Handset
Alliance. In October2008, HTC released the HTC Dream, the execution of native
applications and third-party apps which are available via Google Play, which
launched in October2008 as Android Market. By Q4 2010, Android became the
best-selling smartphone platform.

36. 36
iOS
iOS is a mobile operating system developed by Apple Inc. and distributed
exclusively for Apple hardware. It is the operating system that powers the
company's iDevices. In 2007, Apple introduced the iPhone, the first device to use
iOS and one of the first smartphones to use a multi-touch interface. The iPhone
was notable for its use of a large touchscreen for direct finger input as its main
means of interaction, instead of a stylus, keyboard, or keypad as typical for
smartphones at the time. In 2008, Apple introduced the App Store, which allowed
any iPhone to install third-party native applications. Featuring over 500
applications at launch, the App Store eventually achieved 1 billion downloads in
the first year, and 75 billion by mid-2014 In January 2015, Apple announced that
they have now sold one billion iOS devices.
Windows Phone
In 2010, Microsoft unveiled Windows Phone 7 with a User Interface inspired by
Microsoft's "Metro Design Language", to replace Windows Mobile. Windows
Phone 7 integrates with Microsoft services such as Microsoft SkyDrive, Office,
Xbox and Bing, as well as non-Microsoft services such as Facebook, Twitter and
Google accounts. This software platform runs the Microsoft Mobile smartphones,
and has received some positive reception from the technology press and been
praised for its uniqueness and differentiation. In recent version of Windows Phone
turn into new series called Windows 10 Mobile , They insert many new things like
App porting from Android, iOS, a brand new mobile computing called Windows
Continuum which allow users to use full-fledged PC experience by putting a
Display, Keyboard and mouse. Also a new Universal Windows Platform has
announced by which developer can build any app for every Windows 10 platform
with same core API. This version of Windows Phone have lot of things for
developers

37. 37
Market share
Smartphone usage
In the third quarter of 2012, one billion smartphones were in use worldwide.
Global smartphone sales surpassed the sales figures for features phones in early
2013. As of 2013, 65 percent of U.S. mobile consumers own smartphones. The
European mobile device market as of 2013 is 860 million. In China, smartphones
represented more than half of all handset shipments in the second quarter of 2012
and in 2014 there were 519.7 million smartphone users, with the number estimated
to grow to 700 million by 2018.
As of November 2011, 27% of all photographs were taken with camera-equipped
smartphones. A study conducted in September 2012 concluded that 4 out of 5
smartphone owners use the device to shop. Another study conducted in June 2013
concluded that 56% of American adults now owned a smartphone of some kind.
Android and iPhone owners accountfor half of the cell phone user population.
Higher income adults and those under age 35 lead the way when it comes to
smartphone ownership.
Worldwide shipments of smartphones topped 1 billion units in 2013, up 38% from
2012's 725 million, while comprising a 55% share of the mobile phone market in
2013, up from 42% in 2012.
By manufacturer
In 2011, Apple had the highest shipment market share worldwide. In 2013,
Samsung had 31.3% market share, a slight increase from 30.3% in 2012, while
Apple was at 15.3%, a decrease from 18.7% in 2012. Huawei, LG and Lenovo
were at about 5% each, significantly better than 2012 figures, while others had
about 40%, the same as the previous years figure.

38. 38
Only Apple lost market share, although their shipment volume still increased by
12.9 percent; the rest had significant increases in shipment volumes of 36 to 92
percent. In Q1 2014, Samsung had a 31% share and Apple had 16%. In Q4 2014,
Apple had a 20.4% share and Samsung had 19.9%
In Q1 2015 in the US, Android market share was 53.2%; Apple's iPhone had a
41.3% share and Samsung's Android smartphones had 29.3%
Worldwide Smartphones Vendor Market Share
Source Date Samsung Apple Inc. Huawei Xiaomi Lenovo LG Others
Gartner Q3 2014 24.4% 12.7% 5.3% 5.2% 5.0% N/A 47.5%
IDC Q3 2014 23.7% 11.7% N/A 5.2% 5.1% 5.0% 49.3%
IDC Q2 2014 24.9% 11.7% 6.7% N/A 5.2% 4.8% 46.7%
Gartner Q4 2013 29.5% 17.8% 5.7% N/A 4.6% 4.5% 37.9%

39. 39
Smartphones India Marketshare
By operating system
The market has been dominated by the Android operating system since 2010.
Android's market share (measured by units shipment) rose from 33.2% in Q4 2011
to 78.1% of the market in Q4 2013. Apple's market share oscillated between 15%
to 20.9% during the same period. BlackBerry's market share fell from 14.3% in Q4
2011 to 0.6% in Q4 2013. Windows Mobile market share rose from 1.5% to 3%
during the same time frame.
As of the end of Q3 2014, Android was the most popular operating system, with a
84.4% market share, followed by iOS with 11.7%, Windows Phone with 2.9%,
BlackBerry with 0.5% and all others with 0.6%

40. 40
Historical sales figures, in millions
Year
Android
(Google)
iOS
(Apple)
Windows
Mobile/Phone
(Microsoft)
BlackBerry
(formerly
RIM)
Symbian
(Nokia)
Palm/WebOS
(Palm/HP)
Bada
(Samsung)
Other
2007[110]
3.3 14.7 11.77 77.68 1.76
2008[110]
11.42 16.5 23.15 72.93 2.51
2009[111]
6.8 24.89 15.03 34.35 80.88 1.19
2010[112]
67.22 46.6 12.38 47.45 111.58
2011[113]
219.52 89.26 8.77 51.54 93.41 9.6 14.24
2012]
451.62 130.13 16.94 34.21 15.9 47.20
2013[114]
758.72 150.79 30.84 18.61 18.82
2014[115]
1,004.68 191.43 35.13 7.91 5.75

41. 41
Facts and statistics about the Mobile Communications Industry
With the increasing popularity of mobile devices, the demand for mobile
communication technology continues to rapidly grow all around the world. The
global mobile data traffic, for example, is forecast to increase from 3.7 exabytes
per month in 2015 to 30.6 exabytes per month by 2020. Wireless data telecom
services are projected to generate about 554 billion U.S. dollars in revenue in 2019,
a significant increase from the 2014 figure, when spending stood at about 393
billion U.S. dollars. As of June 2015, the number of mobile wireless subscriptions
worldwide already was at around seven billion, with the GSM technology
accounting for the majority of connections.
Industry Revenue Values
Mobile service revenues worldwide $1,114bn
Global voice service revenues $698bn
Mobile data service revenues worldwide $416bn
Subscribers and Usage Values Statistic
Number of mobile (cellular) subscriptions worldwide 6,915m
Mobile wireless penetration worldwide 93%
Number of text messages (SMS) sent per second worldwide 192,192
Total number of mobile subscriptions worldwide 6,969m

42. 42
Statistics and facts about Smartphones
Smartphones, mobile phones with more advanced computing capabilities and
connectivity than regular mobile phones, came onto the consumer market in the
late 90s, but only gained mainstream popularity with the introduction of Apple’s
iPhone in 2007. The iPhone revolutionized the industry by offering customer
friendly features suchas a touch screen interface and a virtual keyboard. The first
smartphone running on Android was introduced to the consumer market in late
2008. The smartphone industry has been steadily developing and growing since
then, both in market size, as well as in models and suppliers. By 2017, over a third
of the world’s population is projected to own a smartphone, an estimated total of
almost 2.6 billion smartphone users in the world.
Global Smartphone Market
Global smartphone sales to end users 1,423.9m units
Global smartphone shipments 1,432.9m units
Global revenue from smartphones $264.75bn
Manufacturers & Operating Systems Values
Samsung global market share 22.7%
Global market share of Apple’s iPhone sales 10.4%
Android global smartphone sales 758.72m units
iOS global smartphone sales 150.79m units
Trends & Usage Values
Global shipments of smartphones with screen size 5” or larger 60.4m units
Internet users in China who have made purchase via mobile device 18%

43. 43
3. Literature Review
India phone market is going through intense competition. We will see intensified
competition in the Indian smartphone spaceas Asian (companies) such as Xiaomi,
Gionee, Huawei and Asus enter with premium hardware at an aggressive price-
point, attracting young tech-savvy but price-conscious urban buyers However,
these brands will have to work hard on their brand awareness, distribution and
service network to continue the growth beyond the early spike in demand in this
very important mobile phone market.(Anwar, 2014).
According to International Data Corporation (IDC), India was the fastest growing
market in Asia/Pacific with a quarter-on-quarter growth of 27% in Q3 2014 (July –
September). The market observed exceptional growth owing to festive demand and
recorded a new high in smartphone shipments in Q3 2014. As a result, the India
smartphone market outshone other emerging markets in the Asia/Pacific region in
terms of quarter-over-quarter growth.
(Alamro & Rowley, 2011) Suggested that consumer attributes, brand image and
band awareness are the antecedents of brand preference. Brand preference is “the
extent to which the customer favours the designated service provided by his or her
present company, in comparisonto the designated service provided by other
companies in his or her consideration set” (Alamro & Rowley, 2011)
Price is the dominant factor affecting the decision to buy mobile phone. Secondly,
the features incorporated in a mobile hand set are the most important factor which
is considered by the consumers while purchasing the mobile phone. However, all
features of mobile phones are not equally important.

44. 44
The other factors equally correlated and have moderate relationships with the
decision to buy are brand name and durability of mobile phones. Both the factors
are highly associated with the quality of mobile phone devices. The least correlated
factors are after sales service and social influences.
The effects of six independent variables (price, social influence, durability, brand
name, productfeature and aftersales service) on the decision to buy a mobile phone
device is not ignorable. All the six independent variables combined significantly
influence the consumers buying decision of mobile phone devices. The leading
factor is price followed by productfeatures and durability. (Sata, 2013)
According to The Economics Times,(4 feb,2015), Home smartphone vendor
Micromax surpassed South Korea's Samsung to become the leading supplier in
India's booming smartphone market for the first time in the fourth quarter, research
firm Canalys Wednesdaysaid. Micromax accounted for 22% of smartphone
shipments in India in the October December quarter, up from 21% in the previous
quarter. Samsung's market share fell 2 percentage points sequentially to 20% in the
fourth quarter. Samsung though has previously denied losing smartphone market
share, saying as per its data, it's share is almost double its closestrival. This
performance in Q4 is partly due to Micromax's continuing appeal to mobile phone
users upgrading to smart phones, Canaly’s analyst Rushabh Doshi said. He added
that catering to local market preferences will becomeincreasingly important in
India.

45. 45
In total, 21.6 million smartphones were shipped in India in the period, up from
18.9 million in the third quarter. The firm said that total smartphone shipments
surged 90% from a year earlier period. Canalys' recently published estimates show
that in the fourth quarter of 2014 in India, 23% of shipments were of devices
priced under $100 (Rs 6,000), while 41% were of devices in the $100 to $200
bracket (Rs 6,000 to Rs 12,000).
Literature review for Apple
The first significant new entrant to the emerging mobile Internet space was Apple,
which in 2007 introduced the Apple iPhone. It catalyzed a shift in the architecture
of the mobile phone industry and set the standard in two ways. First, it provided a
fully functional web browser that allowed users to escape previous operator-
specific silos of mobile content by linking them directly to the infinitely larger and
more diverse Internet value networks. In effect, it collapsed the boundaries
between the mobile device and the Internet with its enormous content. Secondly,
leveraging the iPod ecosystem, but going far beyond it, the iPhone created a
platform sufficiently open and attractive to create an ecosystem of application
providers with 250,000 iPhone-specific applications that encouraged billions of
downloads. Many see the innovations by iPhone application developers as a key
driver of user adoption (Martinez-Salazar 2010).
Despite Apple’s vertically integrated approach—and initial strategy of exclusive
carrier contracts—it identified the enormous demand for easy to- use mobile
Internet terminals. Apple catalyzed and capitalized upon the subsumption by the
Internet of the originally separate mobile phone world. Apple accomplished two
seemingly contradictory feats simultaneously:

46. 46
1) It leveraged users’ desire to have access to the entire Internet and their Internet-
based applications on a handheld device, and 2) it created a platform upon which
developers could build iPhone-specific applications that it would controland from
which it could extract a rent. Apple effectively re-created a Macintosh-like user
system without the power that Microsoft exerted over Apple through its control of
Microsoft Office. The iPhone also challenged the traditional mobile phone
manufacturers who were delivering an inferior Internet experience and, outside of
Japan and, to a lesser degree, China and Korea, had not been able to create a
dynamic phone specific applications ecosystem. Finally, in North America and
Europe, neither phone makers nor carriers had platforms that were attractive to
independent developers.
In many ways, the success ofthe iPhone is quite unremarkable and strategically
interesting only because it had early mover advantage and an excellently
engineered product. Fromthis perspective, the iPhone success is a typical model of
leveraging a previously successfulplatform, the Apple iPod, with its extant
ecosystem, cachet, and market momentum, to enter the more contested market,
mobile telephony, within which the existing dominant vendor, Nokia, has difficulty
responding to the coming technological discontinuity.6 In this sense, Apple
followed a platform “tipping” strategy across markets, from digital media player to
smartphone (Gawer and Cusumano 2002). In contrast to the Christensen paradigm
of entering in a low-end segment and working upwards, the iPhone enters the high-
end of the market with a more functional product. Of course, part of having a
successfulproductis its inherent quality and attractiveness to consumers. The
corollary is that a large and growing market and market share attracts potential
platform complementers. Finally, Apple has devoted followers, many of whom
have significant technological capabilities and provide a large group of early
adopters.

47. 47
Literature Review of Samsung
In order to understand what Samsung wants to achieve in the smartphone market
and how, I will examine the company’s mission and vision statements. This
process is essential in understanding the underlying drivers for Samsung’s strategy
decisions in the smartphone market. The mission statement is the starting point for
the strategies and plans. (Drucker, 1973) He continues by saying the strategy
formulation requires answer to question “What our business is and what it should
be.” And the answer should be found in the mission statement. (Drucker, 1973, 57)
A company needs to answer five questions to define its mission statement.
(Drucker, 1973). A company must know what kind of business they have and who
their customers are and what their customers’ value, as well as what and how the
business should be. By answering these questions, will determine the choice of
strategy so that it leads to accomplish the goals set in the mission statement. In
their book“, SuccessfulMarketing Strategies for High-tech firms” Viardot (2004)
stated that, a mission statement is different kinds of statements of the dominant
justification of an organization.
“Inspire the world, create the future”, Is Samsung mission statement in its vision
2020. With this new vision, Samsung commitment is to inspire its communities by
taking advantage of its key strength, creative solutions, innovative products and
new technology, as they continue to promote its new values for Samsung core
networks.

48. 48
In spite of its success,Samsung still lags behind Apple in terms of which is the
most innovative company. In its mission to capture the title of being creative leader
in the Smartphone market, Samsung leaders believe they must fundamentally
transform the company’s culture and strategies. By doing R&D, Samsung will be
able to control its destiny. For them to get the kind of growth they have in their
mission, they have to make the transition from being innovation follower to
innovation leaders. (O’Brien, 2013)
Samsung’s mission seems focused in building its brand and becoming a creative
leader in new markets. It looks like Samsung is set to change its reputation of
being fast followers, a company that succeeds through watching others pioneer
new technologies and markets and then rush in behind. This was seen when
Samsung lost a high profile case to iPhone after being accused of the company’s
phones were iPhone’s rip-offs that violated a number of patents.

49. 49
4. Research Methodology
Research is the systematic and objective search for the analysis of the information
relevant to the identification and solution of any problem in the field of channel
development. The objective behind this project was to get a deep insight into the
marketing strategy and the market of the famous smartphone companies in the
world namely Apple Inc. and Samsung Electronics.
The research is secondaryin nature. For the purposeof the study, relevant
information has been collected through books, articles, websites and annual reports
of the company under study.
According to prof. Philip Kotler, “Marketing research is the systematic design,
collection, analysis and reporting of the data and finding relevant to specific
marketing situation facing the company”.
Marketing is restless, changing dynamic field. Since 1920 many important and
dramatic changes have taken place in marketing, thousand of new products
including those of entries of new industries such as automobiles, electronics and
computer, textiles, walk productetc. have prepared in the market. The market
orientations have changed from productionto market.

50. 50
Objective of the study
 to know the marketing strategy of the Samsung and Apple co.
 to know the future aspects of the Samsung and Apple co.
 to analyze and comment on their current marketing strategy.
 to know the smartphone market currently prevailing in this century and in
future.
 to comment on the strategy carried on by both the companies.
 to see what marketing principles are applied or synced by Samsung and
Apple Co.
DEVELOPING THE RESEARCH PLAN
The second step of marketing research process calls for developing the most
efficient plan for gathering the need information. While designing a research plan
we have to take decisions regarding data sources, searchapproached, search
instruments, sampling etc. as we all know to collect data there are mainly two
sources which provide us with required data and they are:
Primary data:
Personal interviews are conducted which enable collection of oral verbal response.
This is fact to face contracted with structured or sometime even unstructured
patterns. This helps in obtaining indent information.

51. 51
Secondarydata:
Secondarydata can be obtained from different magazines and annual reports,
financial documents referred.
Research Approach
The research is secondaryin nature. For the purposeof the study, relevant
information has been collected through books, articles, websites and annual reports
of the company under study. So for getting information regarding the marketing
strategy of the Samsung and Apple companies I opted for the secondaryresearch
approach.
Research instrument
Secondarydata can be obtained from different sources:
Information collected through censuses or government departments like housing,
social security, electoral statistics, tax records
Internet searches or libraries
Progress reports.
For the collection regarding marketing strategy, i selected the above stated
secondaryresearch instruments and used them as per there requirements.

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Limitation of the Research
Every study, no matter how well it is conducted, has some limitations. This is why
it does not seem reasonable to use the words "prove" and "disprove" with respect
to research findings. Following are some of the limitations pertaining to the usage
of the secondarydata and my research:
 It is always possible that future research may cast doubton the validity of
any hypothesis or the conclusions from a study.
 As the study is based on secondarydata, the inherent limitation of the
secondarydata would have affected the study.
 Some of the data may be out of date and not of the present state as that kind
of information has not been published or still in publishing.

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5. Findings of the Study
To begin with the research, the marketing strategies of both the company that is,
Samsung and Apple, contains variety of information which can be hard to explain
and present. As they are multibillion companies there marketing importance also
stays at the top than others.
So, the marketing of the Samsung and Apple have been classified under various
headings and they are
 Marketing Mix
 STP
 SWOT Analysis
 Marketing Strategies overview
So to begin with
1. Marketing Mix
The term "marketing-mix" was first coined by Neil Borden, the president of the
American Marketing Association in 1953. It is still used today to make important
decisions that lead to the execution of a marketing plan.
The marketing mix is a business tool used in marketing and by marketers. The
marketing mix is often crucial when determining a productor brand's offer, and is
often associated with the four Ps:price, product, promotion, and place. In service
marketing, however, the four Ps are expanded to the seven Ps or Seven Ps to
address the different nature of services. These four elements are adjusted until the
right combination is found that serves the needs of the product'scustomers, while
generating optimum income. Sometimes the first P (Product)is substituted by
presentation.

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1.1 Marketing Mix of Samsung
In order to find out which strategy Samsung used to achieve its leading position in
the smartphone market, I will take a look at its marketing mix. The marketing mix
will point out the strategic choices of the company. Marketing mix is referred to
blend of product, pricing, promotion distribution strategies made to producea
mutual satisfying exchange with the target market (Hutchison, 2009).
 Product
These are the goods and services that a company offers to the target market.
Productis the main thing that the marketing energy must focus. (Borden, 1964)
Hutchison (2009) defined products as goods orservices designed to satisfy the
customer’s need. He continued by stating that the productin marketing refers to all
activities relating to the productdevelopment, keeping in mind that there is a
market for the product, it has to be appealing; it differentiates from other products
existing in the market, and it can be produced at an affordable competitive price.
Samsung’s smartphones evolve beyond its limitation in slim phones to embody the
perfect combination of comfort, simplicity and sophistication. All their unique
customized smartphones come with outstanding features. Products vary greatly in
Samsung’s phone department. They have a number of Galaxy smartphones,
Galaxy S7 being their seventh generation. Samsung galaxy Series are Android
based. These series are recognized as follows:-
“S” (Super Smart/ Flagship) they are for flagship purposes suchas their current
fourth generation galaxy S4.
“R” (Royal / Refined/ Premium) these models combine power, performance and
productivity.

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“W”(Wonder/High Tier). This is for people who seek balance between style and
performance.
“Y” (Young”). This is for the young audience who are sensitive to price.
Their mobile phone lines include Galaxy S phones, galaxy J, Z, A smartphones,
Galaxy Note phones, and other Cell phone versions. The leading phones in the
company are the Galaxy S 7 and the Galaxy Note 5.
 Price
This is the amount for what the productis to be paid. (Borden, 1964). Hutchison
(2009) referred price as what customers will exchange for product. Among the four
components, price is determined as an important variable since it is one of the key
determinants of a productvalue. Price is thus one of the evaluative criteria used by
consumers, as are the costincurred in buying and owning or using the product
(McDonald, 2013). He also noted that the price is very difficult aspectof the
marketing mix to manage.
After manufacturing innovative and costeffective phones worldwide for a long
time, Samsung has been able to learn what is required to stay on top of its industry.
It has not allowed Apple Inc. to grow in markets like Asia and developing
countries like India due to its price policy. This is the results of manufacturing
wide range of products with different price range.
Samsung uses different types pricing strategy for their products and value for
money to the customers for their products. Firstly, Penetration Strategy for the
lower segments. They introduce Samsung GURU series under this strategy.

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Secondly, Samsung also uses Odd Pricing Strategy such as Galaxy tab 3 neo priced
at Rs. 9990, Samsung Guru music at Rs. 1785
Thirdly, they use Skimming Strategy and introduce galaxy note series.
Lastly, they also use competitive pricing strategy to competewith their rivalry.
 Promotion
These are all types of communications a marketer may use to give information to
different people about the product(Borden 1964). All the promotion activities are
designed to communicate with the market and thus promotes the sale of the
products. Promotionprovides information that will assist customers in making a
decision to purchase a product.
It is also seen as informing, motivating the customers and reminding the consumers
to purchase the product (Hutchison, 2009). Promotion is an essential toolfor
solving organizational problems like enhancing market position or persuading
customers to behave in line with the economic interest of the business (McDonald,
2013).
Samsung uses different promotional tools across different media platforms to
promote its smartphones. They use the television, print advertising, internet social
media and outdoormedia.
The company uses all five elements of promotion; Advertising, Public Relations,
Sales Promotions, Direct Marketing and Personal Selling.
Hoardings and posters are put up in the major cities. Celebrities are invited for the
launch of a new product. In addition, to help promotethe global appeal of the
brand, often-famed celebrities like Amir Khan and Priyanka Chopraare made its
brand ambassador.

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It is usually Samsung’s strategy to use almost 5% of revenue generated from sales
in promotion. Public relations, putting out new releases, writing articles for trade
publications etc. are usually the part of promotional schemes. For the official
launch of Samsung’s latest Wave and Galaxy S, Amir Khan was present in
Mumbai.
 Place
Also known as distribution. This is to how the productfinally reaches the
consumer (Borden, 1964). The distribution channels. Providing of products at a
place where is convenient for customers to access.
So the development of a strategy for the channel is important for the relationship
an organization has with its customer. Many distribution systems are made up of
channel intermediaries such as wholesalers and retailers.
A marketer can use; intensive distribution, selective distribution, exclusive
distribution and franchising to complement the other aspects of the marketing mix.
Samsung uses variety of distribution channels. They distribute to various
telecommunication companies like mobile phone retailers, Internet partners such as
Amazon and other carriers. They also have Pop-up Samsung retail stores.
Samsung is headquartered in Seoul, Republic of Korea. It has operational locations
in Korea, the United States, Europe, Asia, Africa, and China. With its network of
subsidiaries and affiliates, it operates in more than 72 countries worldwide with
197 offices.

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1.2 Marketing Mix of Apple
Apple Inc’s marketing mix indicates how the company matches its business
activities to market conditions. This analysis of the firm’s marketing mix provides
insights about how to effectively address market conditions and the competitive
landscape through appropriate products, distribution, promotion and pricing. Apple
continues to use its marketing mix in globally expanding the business through
various channels and with a growing productmix, along with an array of
promotion strategies. As one of the most admired companies in the world, Apple
Inc. serves as an example of how the marketing mix can supportbusiness success.
Apple Inc’s marketing mix involves a variety of premium-priced products that are
successfully promoted and sold through a variety of distribution channels.
 Product
According to Boseng (2011), Products are the goods and services that a business
provides for sale to target the market. Apple like any other company began with
the products. At first Apple computers (MAC) were considered as an overpriced
niche productwith a low market share. Only communications segment considered
it as a great took for design and AV applications, but the rest of the people
remained loyal to the traditional PCs;but Apple continued to build their baseof
brand advocating through design, combining unprecedented features and
innovative styling. In the recent years, Apple diversified it productmix by
introducing new line of products, keeping up with the competitive consumer
electronics market. Some of their well known products suchas the iPod, a portable
music player was the first productrange that was launched to compete in the
portable media player market and not after long came the iPhone (the most

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innovative device that has several features like mobile phone capabilities, music
player, small personal organizer and portable computing, all put in a one tiny
handheld which dominated the mobile phone market).
What makes iphone unique is that it allows customization to be done suiting the
individual needs accordingly, making it relevant to its target market. Other famous
products ofApple comprises of ipad, another handheld touch form of mini-
computer and Apple TV.
These Apple products currently available in the market show the firm’s
diversification in this component of the marketing mix. However, as part of its
productdevelopment intensive growth strategy, the company continues to develop
new products, suchas the Apple electric vehicle, which is under development
through collaboration with firms like Tesla Motors. This productmix shows that
Apple’s marketing mix is extensive in terms of productvariety to address
customers’ needs in different areas of their lives.
 Price
Apple has never considered pricing as one of the competitive advantages. They
only use their best resources to make a great final productfirst, and then only
worry about the costs. Theonly buck to this trend we have seen now is with iPad.
Apple’s competitors release their own tablet devices, but none of them are coming
any closer to iPad’s entry price of $499 even when everything is equal in regards
of the hardware and component quality.

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It is clearly seen that Apple is leveraging some of the supply chain advantages
earned from the iPhone and iPod with regards to materials like touch screens and
flash memory in order to keep iPad’s pricing down, which will prove very difficult
for the major competitors to approachin the near term. Rival firms suchas
Samsung operate in many different business segments that ties together the
multiple component suppliers, would probably come close over time, but it
assuredly is an uphill battle for even the best of them to compete in the short-term.
Therefore, the high price charged for its products also portrays the high quality of
its products, for which customers are willing to pay for.
Apple uses a premium pricing strategy. In this component of the marketing mix,
the emphasis is on how prices represent the company and its products, while
meeting consumer expectations. In Apple’s case, the premium pricing strategy
involves relatively high prices. This pricing strategy helps maintain the high-end
image of the company and its products. Another effect of this pricing strategy is
that Apple products attract a smaller market share composed ofpeople from the
middle and upper classes. Nonetheless, the company maintains profitability
because premium prices entail higher profit margins. Thus, Apple’s marketing mix
is aligned to the company’s premium productdevelopment strategy.
 Place
Apple has adopted a hybrid distribution channel involving an online store, physical
outlets and the retail points of the exclusive mobile service provider and its online
store.

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Apple recognized that by getting their products used by students, could influence
brand preferences more in the development years of a new generation of computer
users. The most dramatic 'Jobs-led' initiative involved the 4th element of marketing
mix “place”, which was the opening of its now iconic Apple retail stores. Apple
expanded its consumer reach by building numerous new retail outlets, owing and
operating around the world in the last ten years. It has also placed their products
from iPods, iPads, and iPhones in about every store that sells electronics these
days. Also, from numerous retail outlets to a great e-commerce website, like
Amazon, Apple's website, making their products as easy to buy for consumers as
anything out there today.
The following places are included in Apple’s distribution strategy:
Apple Stores
Online Apple Store and App Store
Authorized retailers
Telecom companies
Fulfillment services
Apple Stores are the most visible places that sell the company’s products. The
online Apple Store and App Store are also highly visible. However, these stores are
not the only places in the firm’s marketing mix. For instance, Apple also uses
authorized retailers, such as Walmart, Target and Best Buy. The company also
includes telecom companies like AT&T, Verizon, and Sprint, which sell iPhone
units. In addition, Apple uses fulfillment services from companies like
Amazon.com and eBay, through which third parties sell Apple products online.
Thus, Apple’s marketing mix is comprehensive in exploiting different types of
online and non-online distribution channels.

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 Promotion
According to Villing and Company (2011), promotion refers to the act of
communicating the benefits and value of your company's productto their
consumers. Apple’s commercial spots are instantly recognizable by everyone
whether you are a fan of their products ornot. It is easy to identify their
commercials immediately because of the use of the simplistic approachof the
layout of their productfeatured on a white background, with catchy music playing
in the background, using the approach''Less-is-more products, meets less-is-more
advertising''.
Everything in their advertisements are visual, and visually plentiful, but not
overpowering as some ads can be. When a new productgets launched, along with
the press conference, several major tech blogs and websites also take part in
covering the event. Apple spends half billion dollars annually on paid media,
which is actually lesser than rival brands Microsoft and Dell. However, given the
memorability of Apple’s advertisements, it seems to be more pervasive than it
actually is. In addition, if there was a posterchild for the powers of word-of-mouth
marketing and brand loyalty, it would be Apple.
Apple’s marketing mix includes advertising through the company’s website and
Apple Stores, as well as advertising through other firms, such as technology news
sites. The company also uses personal selling in the form of Apple Store
employees who provide product-specific information in the aim of convincing
store visitors to make a purchase. In addition, the company’s marketing mix
involves sales promotion, which usually happens at the Apple Store. Moreover, the
company uses public relations to optimize its corporateimage. For instance, Apple
Events, leaks of new productfeatures, press releases, and exclusive interviews are
carefully implemented to maximize positive publicity. Thus, Apple has mastered
the promotion component of its marketing mix.

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2. Segmentation, Targeting & Positioning (STP)
The STP process is an important conceptin the study and application of marketing.
The letters STP stand for segmentation, targeting, and positioning.
The STP process demonstrates the links between an overall market and how a
company chooses to compete in that market. It is sometimes referred to as a
process, with segmentation being conducted first, then the selection of one or more
target markets and then finally the implementation of positioning. The goal of the
STP process is to guide the organization to the development and implementation of
an appropriate marketing mix.
Market segmentation can be defined as:
The process ofsplitting a market into smaller groups with similar productneeds or
identifiable characteristics, for the purposeof selecting appropriate target markets.
Targeting refers to:
An organization’s proactive selection of a suitable market segment (or segments)
with the intention of heavily focusing the firm’s marketing offers and activities
towards this group of related consumers.
And positioning (which is sometimes referred to as productpositioning) is:
Positioning is the target market’s perception of the product’skey benefits and
features, relative to the offerings of competitive products.

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2.1 STP of Samsung Smartphones
 Segmentation
Segmentation in the market-driven strategy process is segments, value
opportunities, new market space, matching value requirements with capabilities,
market targeting and strategic positioning. Activities of market segmentation are:
1. Defining the market to be segmented.
2. Identifying market segments
3. Forming market segments
4. Finer segmentation strategies
5. Selecting the segmentation strategy
The firm uses mainly lifestyle and demographic variables in segmenting their
market. The firm should however lay more emphasis on the changing lifestyles of
the young generation and cater for their ever changing needs. In order to regain
market share, the company can segment the market into rural and urban people.
The rural targets will help increase the market share. The urban should comprise
mainly the people aged 15-30.
Samsung is targeting the customer market by dividing it into different segments
and offering each segment different productbased on their common characteristics.
The consumer market for samsung products has been divided using four schemes
of segmentation variables i.e geographic, demographic, psychographic and
behavioural

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Geographic Segmentation
Region- Samsung has divided the Asian market into different geographical regions
such as northern, eastern and southern areas
City- Samsung is targeting different countries of Asia differently by dividing as
different markets such as Indian Market, China market.
It has Samsung Guru Segment for rural areas as well as Galaxy segment for urban
areas. Samsung is one of the largest manufacturers of mobile phones and it shares
the highest cell phone customers with Nokia in India. It has something for
everyone.
Demographic Segmentation
Samsung has mobile phones for youth, age of 16-29, for businessmen etc. for
middleclass youth it has Samsung Guru which is for govt. lower class workers
also. Guru has many variants; it is coming in 3G also. It is a good option if you
want to get a cheap 3G handset. Samsung Galaxy is a good option for youth as it
has many attractive features as Wi-Fi, 3G. Galaxy is also for Businessmen.
Samsung has partnered with IT industry leaders to bring you the most relevant
enterprise solutions and the most comprehensive mobile implementation of
Exchange ActiveSync. Decidedly adept in security concerns and the answer to
your every business need, the Galaxy S 7 is ready for serious enterprise usage.
Psychographic
Samsung mobile is available for those customers too who have their choice based
on their lifestyle. Samsung came with some so fancy mobile phones specially for
girls and cheaper touch screen stylish phones so that everyone can enjoy touch
screen The rate of normal mobiles. Samsung has its range of mobile phones start
from 1200to 32,000+

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Behavioral Segmentation
Benefits: Consumer are also targeted differently based upon the benefits that are
seeking in Samsung electronics i.e., some people may want good quality, some
may want low services and some want good services.
User Status : Samsung is keen to know user status of its target consumer in order to
better offer its productand therefore they are divided into ex-user, potential user,
first time user and regular user.
Loyalty Status : Target market of Samsung may contain people with different
loyalty status and therefore Samsung is targeting these customer differently based
on their loyalty i.e., hard core loyal, split loyal, shifting loyal, switchers.
 Targeting
The market targeting options include a single segment, selective segments, or
extensive segments. When segments are not clearly defined, productspecialization
or productvariety strategies can be used. Market targeting decisions need to take
into accountproduct-market life cycle stage.
After segmenting the market based on the different groups and classes, the targets
need to be chosen. Samsung mobiles have the following target customers:
 Trendy young people.
 Professionals.
 Large businesses.
 The common cellular phone users.—
 Organizations such as: services to public safety, the government, and both
utility and manufacturing enterprises.

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 Institutional sales for colleges.
Target is not only number driven but also about acquiring and retaining customers.
Samsung target the upper middle class professionals. They usually have busy
schedules and hence need to communicate with their colleagues and families. The
secondarytarget are the high schoolcollege and graduate who need devoices
which are multifunctional and portable. The secondary target includes medium size
corporations and they aim to help managers and employees have crucial data
access on the go. Thus the company has two main segments and this is called multi
segments targeting. The company should however enhance target group to
incorporate more teen activities that are the main target of main competitors.
 Positioning
Positioning is about the customer perception about the brand as being different
from the other brands on specific dimension including productattributes.
The strategies adopted by Samsung to position itself in the Mobile Phone market
are as follows:
 — It focuses more on the real margin which comes from mid-to-high-end
segments
 — Samsung ConceptStore
 — Market making & category creation in small towns
 — Wider Care Network
 — Access to Samsung care line
 — Pioneering in the 3G segment of mobile phones.
 — Branded itself as a synonym for quality.
 — Created a Unique Brand Image for itself as a high end value driven
brand.

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2.2 STP of Apple
 Segmentation
The Apple iPhone is targeted for the people lying in the age group of 18 to 40 year
olds because they are the ones who are interested in buying the technology. Mainly
males rather than females are targeted for the iPhone because of the applications,
games and features such as wireless internet which are generally used more by the
male population as compared to the latter. The customers buying the Apple iPhone
are usually students who belong to higher class as well as higher middle class as
the phone is quite expensive they even involve early adopters and the early
majority. The iPhone is launched and sold first mainly across USA, UK and some
parts of Europe because they have the infrastructure ready for it and also because
the competition in these countries is quiet intense. Apple iPhone has a strong brand
image in the mind of the customer as Apple says it's not a phone it's an experience.
The after sales service provided by Apple is very good which helps in creating
brand loyalty among the customer. The price positioning strategy of the Apple
iPhone 4 is premium strategy which means that the iPhone 6 is of very high quality
and to get that quality the consumers have to pay a higher price.
Demographic, Apple specializes in men aged 17-35 years. Where in the age of the
production with an average income of 3 million per month and can be said to be
the upper middle class.
Psychographics, with the consideration that the men in the age range of 17-35
years like a sophisticated gadget to meet the needs and improve the prestige.
Geographic, Apple products are marketed globally in other words to the whole
world.

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 Targeting
Apple is targeting its products onthe market or those who are concerned with
style, design and simplicity of the product. Where almost all Apple products have a
user interface that has a style in appearance but easy to use.
Differentiated Marketing was applied on iPhone’s productline. With each version
of iPhone that is different in design interface and applications, Apple Inc. allows
the consumers the opportunities to choosewhich one they want to use. This
method allows the producers to achieve higher sales and stronger position.
 Positioning
According to Switchtomac, 2009 'Understanding Apple's positioning', positioning
is the third and final part of the STP process.
Positioning is one of the simplest and one of the most useful tools for marketers.
After segmenting a market and then targeting a consumer, you would proceed to
position a productwithin that market. Positioning is all about the 'perception', and
it may differ from one personto another. E.g. What you perceive as quality, value
for money, etc, maybe different to another person's perception about it.
Apple is positioned as a premium brand in the mind of the customers that demands
and earns a price premium. This price premium spans the entire Apple product
lineup encompassing the Macintosh, iPod, iPhone, software, and accessories.
Therefore, Apple's has positioned them to target a less price sensitive customer,
thus which has created a culture and a set of activities through which Apple
differentiates itself from competitors to meet the needs of their targeted customers.

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As a matter of facts, Apple Inc. has always applied “More for More” strategy,
providing higher values to the customers at higher costs. iPhone’s productline is
also not an exception. This strategy might limit the company in other’s segments,
but it allows the producer to focus on analyzing only one target segment, and then
improve the products accordingly.
Apple is positioning its products as exclusive and different products compared to
competing products.Apple because it gives the impression that the productis a
productfor the elite. Even for their cheapestproducts though.

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3. SWOT Analysis
SWOT analysis is an acronym for strengths, weaknesses, opportunities, and
threats—and is a structured planning method that evaluates those four elements of
a project or business venture. A SWOT analysis can be carried out for a company,
product, place, industry, or person. It involves specifying the objective of the
business venture or project and identifying the internal and external factors that are
favorable and unfavorable to achieve that objective.
Identification of SWOTs is important because they can inform later steps in
planning to achieve the objective. First, decision makers should consider whether
the objective is attainable, given the SWOTs. If the objective is not attainable, they
must select a different objective and repeat the process.
The point of a SWOT analysis is to help you develop a strong business strategy by
making sure you’ve considered all of your business’s strengths and weaknesses, as
well as the opportunities and threats it faces in the marketplace.
3.1 SWOT Analysis of Samsung
I find it relevant to use SWOT analysis to map the environment of Samsung. This
method is the best in exploring the strengths, weakness, opportunities and threats
for Samsung. SWOT analysis will help in understanding whether Samsung has
built its strategy using its strength and protects itself from the threats in the market,
and whether it has worked to offset its weaknesses.
SWOT analysis is a way to monitor company's internal and external environment,
the overall evaluation of the strength, weaknesses, opportunities and threats,
(Kotler and Keller 2009, 101)

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When a company consider its strengths, and build its strategy and utilizing them
this will create a competitive advantage for them. Weaknesses and threats are the
factors that can affect the company in a negative way. By being aware of these,
Samsung can develop a strategy that will offset its weaknesses and protectthem
from threats. Opportunities are used for the company to develop and grow in the
market.
Strength
• Strong market position.
• Expanded Business portfolio.
• Strong Top-line growth.
• Innovation in design.
• Low production cost.
Weaknesses
• Patent infringement.
• Too low profit margin.
• Less distinction with other android smartphones.
• Lack its own OS and Software
Opportunities
• Wide range of phones.
• Main manufacturers of
application processors.
• Growing mobile advertising
industry.
• Great portfolio patent.
Threats
• Competition.
• Availability of Substitute.
• Rapid technology change.
• Price wars.

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 Strength
Samsung is focused on producing devices that can be connected with most of the
software android, OS. This gives them an edge over Apples’ devices.
Galaxy S7 is the biggest strength for Samsung’s Smartphone products. Its superior
technology allows Galaxy S7 to better meet the customers’ needs in a way the
competitors cannot imitate.
Samsung is the current market leader in the Smartphone, category accounting 21.4
% of the entire market share. It has sold a lot of phones globally compared to its
closestcompetitor, Apple Inc. The Galaxy S series are the main reason for gaining
a large market share over a 7 years’ time.
1. Hardwareintegration with manyopen source OS and software. Samsung is
focused on producing devices which can be integrated with most of the software
and OS. This gives Samsung products an competitive edge over its arch rival.
2. Innovation and design. In 2011, Samsung ranked second onthe list of US top
patent assignees. More patents strengthen Samsung position among its competitors.
The firm also won many awards for the design of its products, proving the superior
advantage over the competitors.
3. Focus on environment. Samsung focuses on producing environment friendly
products that are free from PVC and BFRs (currently only MP3 and mobile
phones). It also develops various recycling programs that are awarded for their
success.
4. Low production costs. The company has set up its production facilities in low
costcountries. This allows producing goods with low production costand benefit
Samsung as it can offer lower price and earn higher margins.

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 Weaknesses
There are few differences between Samsung products and its competitors.
Samsung offers many smartphones, including Galaxy S line. These smartphones
have been criticized for being “evolutionary” as opposed to revolutionary and
contain many features that are used by many companies.
Samsung has been caught in cases of infringing Apples and some other firm’s
patent, thus destroying its reputation and made to pay handsomely for the damage.
1. Too low profit margin. Samsung Electronics is the largest technology business
in the world in terms of revenues but it has a low gross profit and net profit
margins. Although its smartphones business is quite profitable, Samsung’s profit
margin is low due to its semiconductors sales and aggressive price cuts.
2. Lack in its own OS and software. Software and OS production has a high profit
margin, can increase integration of company’s products and brand loyalty. Without
strong software and OS Samsung is at disadvantage over its competitors.
3. Focus on too manyproducts. Samsung Electronics serves 4 different industries
with many different products in them. Samsung is at disadvantage over its
competitors because it may loses a focus when competing in too many industries
and too many products.
 Opportunities
Samsung’s wide range of smartphones can attract different markets. Due to its
smartphone consistent quality, features and performance, many critics consider
Samsung the leading Android manufacturer. Most carriers use these features to
advertise for the phone and push sales.