“While Samsung does make a good sum of money and have had record quarters over the past few years, their marketing budget is astronomically high,” Ben Bajarin writes for Tech.Pinions. “Samsung has a nearly limitless bank account. Samsung, like LG, is backed by their nation state of South Korea.”
“So is Huawei, and of course several other Chinese ODMs, who are also backed by their nation state,” Bajarin writes. “When there is a guarantee of a cash trove behind you, it is possible to make business decisions that perhaps other companies without such a wealthy backer would make. In essence the rules for spending may simply be different for a company like Samsung and other Asian OEMs / ODMs who have nation state backing.”
Bajarin writes, “With this backdrop in mind I propose a theory. Perhaps Apple is building its bank account, which is now estimated at about $150 billion with this competitive point in mind. Apple has no guarantee from their nation state who will keep them in business if all goes down the tubes where a number of their competitors do have this guarantee.”
Read more in the full article here.