Why Apple’s fate won’t be the same as Samsung’s

“Samsung might be be struggling. Its CFO recently told a group of reporters that the company’s upcoming earnings report wasn’t looking too good; meanwhile, the upstart handset maker Xiaomi may have overtaken it in China,” Sam Mattera writes for The Motley Fool.

“Although I believe Apple shareholders should be mindful of Samsung’s earnings, in so far as it reflects on the broader smartphone market, there are a few stark differences between the two firms. If Samsung’s mobile business begins to decline, Apple won’t necessarily suffer the same fate,” Mattera writes. “The biggest, most overwhelming difference between the two comes down to the operating systems powering their respective handsets. Samsung uses Android, an open source platform primarily developed by Google. Apple, in contrast, uses iOS — an operating system it develops in-house and [over which it] maintains exclusive control.”

“Last year, Horace Dediu took a look the profits generated by the PC market in the fourth quarter of 2012. Despite a relatively small sliver of the market, Apple captured 45% of the industry’s profits. The other players, despite selling many times more PCs, were left to fight over the remaining 55%, playing what was essentially a commodity game,” Mattera writes. “As other Android handset makers grow in competency, Samsung may suffer the same fate as the Windows OEMs of old. Apple, with its monopoly on iOS, could persevere.”

Much more in the full article here.

13 Comments

    1. SOMEBODY HELP ME!!!!!
      This article has been regurgitated so many times that it looks the same however you rearrange the words!
      IT IS TIME TO BIN THIS BULLSHIT RECYCLING!!!!!!!!!!

      JUST SAYING……………VERY VERY LOUDLY!!!!!!!

  1. As we all know, the phrase “Android, an open source platform” is FALSE. It is clearly in the clutches of Google with plenty of Google-only code never put into the project or available to partners in the project. This is one reason Samsung has attempted their own OS called ‘Tizen’. Whether Tizen has a realistic future is still unknown. So far, no developers other than Samsung have cared to bother with it.

        1. Ratings exist for me. Safari in Mavericks.
          An article or two yesterday was missing them – same browser. Some articles had them, some didn’t. Perhaps an intermittent bug on the site.

  2. Obviously… Samsung is a mega-conglomerate. In addition to electronics, it builds ships, sells household appliances, and has many other diverse businesses unrelated to making mobile phones.

    But in an odd way, decades down the road, if Apple continues grown and expand into new territories (such as “Apple Robotics” or “Apple Motors” or “Apple Consulting”), Apple’s “fate” may be to become a global conglomerate with a more diverse set of businesses.

  3. A couple of years ago in a podcast Horace took a guess that Samsung would be the next handset maker after BB to fail for just this reason. They have nothing unique in their product so the cheap Chinese makers will eat them from below. Their tag line: “We’re just as good as Samsung, but even cheaper.” LOL.

  4. Now the shysters are going to focus on xioami and huawei to say that apple is losing out.

    Actually, the iPhones must be selling like hotcakes in china. Look at china mobiles 3G and LTE numbers. This will be a blowout for apple. This quarter, is the quarter that apple sells morbiphones in china than any other region/country in the world.

    While WS is ravaging the American middle class by the blatant manipulation in the commodity markets with the help of Obama and congress. There is more love of country in a single Chinese bureaucrat than the whole of congress and the executive branch. Maybe only Bernie Sanders of vermont has the well being of the American consumer at heart. He has a bill in the senate to lower the leverage of the shysters in the commodity markets. Of course Harry Reid will never put it on the floor.

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