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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Samsung won't quietly cede ground to Apple

By | September 13, 2010, 2:44am PDT

Samsung, the Korean electronics giant, appears to be playing hardball with Apple as both companies aim to connect consumers on multiple screens from the TV to tablets to mobile devices. And the hostilities are just getting started.

In recent months, it has become increasingly clear that Samsung isn’t going to give Apple ground in consumer electronics. The battle is worth watching since Apple could theoretically get into the TV business at some point. This Samsung-Apple duel will play out in mobile devices, tablet computing as well as your living room. Simply put, Samsung, unlike its rival Sony, isn’t going to be caught flat-footed by Apple CEO Steve Jobs.

It’s no surprise that Samsung has aligned with Google and its Android platform against Apple. To wit:

Samsung on Thursday will introduce its Galaxy Tab, which has been making the rounds, and is designed to be the first high-profile Android device designed to give the iPad a run. Here’s the Thursday invite to Samsung’s official launch.

Distribution and scale matter for Samsung as it take on Apple. The Wall Street Journal reported over the weekend that Samsung has cut deals with Verizon Wireless, AT&T and Sprint to distribute its Galaxy Tab in the U.S. It appears that Samsung’s tablet will go for $200 to $300 with carrier subsidies. The big question here is whether consumers are overloaded with 3G plans. In any case, Samsung will undercut the iPad, which starts at $499. Also: Samsung Galaxy Tab (photos)

Samsung’s Galaxy smartphones have been well-received. These phones are just the latest foot soldiers in the Android army, which is flooding the market to battle Apple’s iPhone.

Meanwhile, Samsung is trying to woo TV app developers. This move appears to be an effort to get ahead of Apple’s master plan to put iTunes and its App Store at the center of your entertainment center. The hockey-puck known as Apple TV is likely just a start to bigger things.

Samsung could be a Google TV partner. Bloomberg reports that Samsung may make Google TV powered sets as a way to defend one of its core markets.

Apple and Samsung will duke it out in the supply chain for components. There are only so many LCD screens to be had.

Add it up and is it any wonder that Samsung execs talk about topping the iPad. In the U.S., Jobs made it very clear he has no love for Samsung. Actually, Jobs took aim at Korean companies, but rest assured he wasn’t talking about Hyundai. At Jobs’ awkward Antennagate press conference a few months back he said:

“One thing I’ve learned is that when there’s a successful organization, people want to tear it down. It’s happening to Google now. Google’s a great company, but people are tearing them down. They’re doing the same thing to us. What’s the purpose in that? Would you prefer, that we’re a Korean company? Do you not like the fact that we’re an American company leading the world right here?”

Given the timing of Samsung’s recent moves, it’s possible that Jobs just gave Samsung some bulletin board material to rally around. Nothing can get a massive conglomerate on the same page as a common enemy. Jobs made his comments in July. Since then, Samsung has been on a bit of a run.

When folks talk about Apple, Google always comes up as the main foe. It may be worth mentioning Samsung in that same conversation. Samsung isn’t about to quietly give consumer electronics ground to Apple, which resembles a consumer electronics company more than the Mac-fueled company from the past.

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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RE: Samsung won't quietly cede ground to Apple
tomlin21-24319035676893835085146735905770 11th Oct
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Does anyone know
Cylon Centurion 13th Sep 2010
If the Galaxy Tab will be available in a Wi-Fi only model? I'd like to pick one of these up if the price is right, but I don't want another AT&T contract sad
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Split Account Service is the Answer!
i2fun@... 13th Sep 2010
@NStalnecker But doubt any provider would go for it. Like I have with Sony PS3. One account, but I can log into and use that one account on other PS3's too. Just not both at the same time. But it's all about service provider greed and if they don't watch out, that's what will kill them. People will either opt for using Galaxy Tab as their phone and slate. If not that, they'll simply just stick with their phones.

Maybe that's what we need people to get fed up with being double charged when they can only use one device at a time anyway. Piss the manufacturer's off to point of getting with service providers that offer more attractive shared accounts like they do sharing minutes on two family phones.

But anyway.... NStalnecker, these new Broadcom combo radios don't make it any cheaper to disable the 3G portion over letting people use both the Wifi and 3G phone. The difference in price to make two designs isn't going to gain any additional income either. It's all back to what Nvidia does selling you basically the same hardware, just charging more for the premium version with everything turned on!

BTW.... rumors are that Samsung is working on WS7/Windows7 (actually that's the new in between OS not WP7 exactly) Galaxy Tab for them too. Just like Samsung Cetus (AT&T Galaxy version) w/WP7 is coming out first week of October!
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@i2fun@...

3 US carriers are already on the ball: Verizon, At&t and Sprint.

Your doubts have just been squashed.
@i2fun@... Very nice Site number one topic Thanks you..
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@NStalnecker
All signs point to no. Samsung doesnt have the ecosystem. My concern for developers is that the ads for the Samsung phones tout FREE apps in the online store. As if to say, hey buy our products so what to the developers. If the only way a developer will make money is via ad impression, and the number of apps keeps that are FREE keep growing, the price per Ad will plummet due to market saturation. But thats just my $.02
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Duplicate
i2fun@... Updated - 13th Sep 2010
NT
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@mrgoodall Do you realize that Apple does not have any factories and are basically just a design house. Literally everything is manufactured and put together by outside contractors and as the biggest parts supplier to Apple, Samsung could...... (by merely refusing to sell them critical parts), put Apple out of business.

Samsung is a Monopoly and they make some parts Apple can't get anywhere else. Like the processors in both iPhone and iPad! ....they literally make more chips than even Intel. They design industrial software and yeah they're just getting into the mobile phone software design and are already being touted as a major success. They make phones for everyone from Microsoft to Nokia parts. Use their OS even as a licensee, along with half a dozen others (including Android) and their own new BADA OS. Their program that does what iTunes only thinks it can do is awesome and a lot more stable:

http://www.samsungmobile.co.uk/support/softwaremanuals/pcStudio31.do

Their Samsung Media Hub market already boasts an extraordinary line up of content and will be on every single phone they make. Including the new Samsung Cetus (AT&T's first WP7 Halo Phone). Perhaps you've seen the viral ad, if you watch TV at all for it's launch with the Halo Reach content? ...nah you're an Apple iFantoid destined to be sucked into oblivion with them!!!! lolz.... as WP7 and Android blow right past CrApple!
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2fun@..

You are right, an I am guesting Samsung already started squeezing Apple supple lines sometime ago, Super OMLED screens the Samsung Galaxy phone are simply so much better an the only explanation for them not being in the Iphone 4 is because Samsung said no to them.
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@Knowles2 Yes... they did tell them no!!! .....and they even told themselves no... on the Galaxy Tab until they get their new multi-billion dollar Fabrication Plant online next year. I think all they have are coming out of that new fabrication plant in Texas. Super AMOLED is so much better than Apple's rinky dink (die shrink for more pixels w/ slower than molasses in winter response times) Retina Screen. Do you know that they gave up contrast ratio and speed to get a ebook reader screen? How lame is that? lolz.... 25ms which is literally from the last century in the first models of digital screens. Not only that, but they have no idea how long those glued glass to touch interfaces are going to last. It's 5 layers deep and has to be replaced as a whole screen unit.

Whereas SAMOLED is just TWO layers deep with the screen being made out of an single indestructible plastic layer with integrated touch interface. They have videos on YT with them being struck with hammers with no damage even while running. So even if you break the Gorilla Glass, you'll only need to replace alone. Which is so much cheaper and smarter. Plus it uses no backlight energy whatsoever!
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@mrgoodall Sure they do... Samsung TV + Samsung DVR/Sling box would be an ecosystem. They could in turn write something that amounts to a setup wizard for an SMB share on a Windows machine and have the media sharing software as well.

Part of the issue with Apple though IS the ecosystem. Some companies do things better than others in certain spaces, I'd prefer not to have to have an end-to-end ecosystem to support something. What I could see Samsung doing is relying on something standards based as a huge selling point (Works with everything).
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@i2fun@...

Reminder to self. Bookmark this posting so I can come back in a year or two for some good chuckle. Are people actually thinking Samsung (Sammy) is going to give Apple serious competition?
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RE: i2fun
/A\V/ 13th Sep 2010
Actually, right now, I'm trying to figure out how i2fun expects to be taken seriously when they use terms like CrApple and iFantoid (whetever THAT one means...), and even includes a lolz.

Pretty classy, if you ask me.
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@i2fun@... "Samsung is a Monopoly and they make some parts Apple can't get anywhere else. Like the processors in both iPhone and iPad!"

No, Apple bought and owns the company that makes the processors for both. In essence, they make their own chips now.
Howdy! This is my first comment here so I just wanted to give a quick shout out and say I really enjoy reading through your articles. Can you recommend any other blogs/websites/forums that cover the same subjects? Thanks a ton! kidney stones symptoms
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@NStalnecker

If they added Virgin Mobile, which runs on Sprint's 3G lines, it would be amazing... no contract and $40 a month for unlimited bandwidth.... But don't think that will ever happen.
Apple is a moderately sized 40billion a year corporation. Whereas Samsung is a 200 Billion dollar a year Conglomerate! ....that's just in South Korea where the majority of their plants are. They now are multinational with new plants in India, China and elsewhere in the World. Including a new fabrication plant in Texas. They are the 5th largest manufacturing conglomerate on the planet and would rang higher than many nations as an Economic Power! ...poor Apple is just chump change to them and Apple resents the fact they have to rely on Samsung for 50% of the cost of iPhone 4 parts. Along with near 70% of iPad cost in parts also going into Samsung's pockets. That's when they are the ones supplying the screens too of course. Which they supply well over half of those!
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Wow, talk about shooting your mouth off...
ShazAmerica 13th Sep 2010
@i2fun@... ...without letting facts get in your way.

Apple, as of this minute, has a market cap of 240.6 billion. With over 40 billion cash in the bank. They even eclipse Microsoft, are calling them puny also!
@ShazAmerica Samsung spends 40billion a year just to build fabrication plants fool and the 200 Billion is yearly income for South Korea alone! lol... market cap? mwaaahaha... it's the 5th largest corporate entity in the World and Apple is maybe down around #50 if that! ....and Apple is solely invested in Soft Assets that can easily disappear overnight (no hard assets or factory they own)! .....and yes as far as the Global Economy goes, they are both (MS and Apple).. puny. Samsung would not be allowed to be based in this country. Because.... they are a bona fide Global Monopoly many times over and have no equal in the Electronics World except maybe Siemens and LG is close in some respects!

As a silicon fabricator alone, they even top Intel. They are the largest Memory Maker, largest Screen Maker, make by far the most phones and parts in the World. The last 2quarters alone they've beat all other phone makers including their little South Korean cousins LG. They make chips, cameras, gyros, super computers, PC's, Laptops, Netbooks, HDTV's, BluRay Players, car parts and computers and the list just keeps getting larger. They are the single largest corporation in in a land of giants in South Korea. Every single thing Apple designs and can't build themselves has Samsung parts in. There is no computer made today that doesn't have Samsung parts in it!

Just accept the fact that Samsung is Apple's BIGGEST friend and Competition in the entire World! grin
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Wow, look who's talking
WinTard 13th Sep 2010
@ShazAmerica

Apple trading at 26+ times earning is ready to pop its bubble.

http://lmgtfy.com/?q=apple+trading+at+26+times+earning

Apple and the Myth of Market Cap
http://www.ctoedge.com/content/apple-and-myth-market-cap
"But you have to ask yourself if Apple is really worth more than Microsoft or any of a number of other companies in the top-10 range in market capitalization. Apple is selling at something like 26 times earnings, which is pretty expensive. Will it stay there, or is this an example of that ?irrational exuberance? we heard about when the tech bubble burst? After all, Apple is nothing if not good at self promotion, and a lot of people, especially smaller investors, can buy into that without looking at the economics behind the stock value."

~~~~~~~~~~
One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.
~ William Feather
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@i2fun

You make it sound like being "a bona fide Global Monopoly many times over" is a good thing...

If anything you make me want to make sure I buy as little as possible from Samsung since it sounds like they have a strangle hold on the economy and are holding back competition (ie the thing that benefits everyone but themselves).
@ShazAmerica
"Korean chaebol Samsung Electronics turned in revenues of 37.89 trillion won for its second quarter, a rise of 17 percent compared to the same quarter year on year. It turned a net profit of 4.28 trillion won.

Read more: http://www.techeye.net/business/samsung-profits-boosted-by-semiconductors-lcds#ixzz0zU3lBhQj



Notice we're talking Trillion vs Billion!!!! Got that? ....and that's Global not what I stated was in South Korea alone. So....... again ShazAmerica:
Year on Year with a net Profit of 4.28 Trillion dollars globally in just one quarter..... I can buy a whole basket full of Apples!!!! wink
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@ShazAmerica -compared to Samsung-yes.I see you didnt even bother to show the numbers for Samsung.As a American it gives me no pleasure to say that either,but I take some solice in the fact that at least they arent chinese owned
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@ShazAmerica
Samsung has bigger market outside the United States. You need to realize, there are other Countries in this world.
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@ShazAmerica Market cap is not revenue or market share, and the cash is mainly a reserve against up and comers.
Samsung is potentially the next big gorilla if they can develop a loyal customer base, like the Mactards.
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chump, change
buddhistMonkey Updated - 15th Sep 2010
@i2fun@... ((( "40Billion is Chump Change to Samsung's Trillions! Sorry!!!" )))

Samsung's "trillions" are counted in Korean Won, which trade at more than 1,100 to one US dollar. One trillion KRW is only equal to about $861 million.
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It's DOLLARS FOOL! haha....
i2fun@... Updated - 15th Sep 2010
@buddhistMonkey Samsung makes everything from well over half the kitchen appliances in European and Asian homes, including Refrigerators, Dishwasher, Electric Ranges, Washers and Dryers just as a starter. They make most of the screens in cars including Dash units, radios and the computers that run them. Commercial Airliners are loaded their parts and electronics from Boeing to Airbus. Did you read the number of TV's they produced or the percentage of growth only a few of their areas of manufacturing expertise? NO! ....you assume because they are not on the New York Stock Exchange it's be cause they aren't big enough. TV's alone = around 15 Billion Dollars value total alone for one quarter of this year and even Sony's screens are made by Samsung and don't count in that total. They in fact as an Global economic power are bigger than any country in South America alone. Where they also have factories.

So let's make this very clear for your ignorant idiocy. They are the 5th largest Global Conglomerate on the Planet! ....in fact they are too big to fit on the New York Stock Exchange as one corporate entity! Fact... don't believe me look it up!

You'll only find bits and pieces of their corporate structure scattered over the World. Then go look at their Skyscraper Corporate headquarters in Seoul or the massive largest shopping mall on the Planet they built in South Korea. Maybe catch a glimpse of the factories and silicon fabrication plants they own or are building which kill Intel in value and costs by themselves. Then you might understand the fact that if you put all of just their factories and manufacturing plants together, from all over the World that it's something like 300 billion plus dollars invested. And that's a light estimate on that alone... Globally! ....the last I heard they have something like over 500 billion in liquidatable hard assets alone!

Now run along little boy and go play in the street somewhere! wink

Read the numbers, because very few things in this World don't have at least some Samsung parts in them or are not solely made by them! (below is just their semi-conductor and tv's only)
"The semiconductor division turned in a 30.8 percent profit margin and operating profit was up a staggering 765 percent compared to the same period last year. Samsung said there was strong demand in the DRAM business, with a 20 percent plus increase in PC shipments and a 30 percent rise in gigabytes per system year on year. Demand for NAND memory remained "steady"

Samsung said that the third quarter will see more DRAM and NAND memory sales.

The LCD business showed a margin of 11.3 percent for the quarter, with sales increasing by between 15 to 20 percent year on year. Average selling prices for TV panels rose by three percent.

Samsung claims it holds the lead position on 3D TV sales - it shipped half a million units, while for flat panel TVs Samsung shipped over nine million units, an increase of 43 percent year on year due to strong groth in developing markets."

Read more: http://www.techeye.net/business/samsung-profits-boosted-by-semiconductors-lcds#ixzz0zdewHtQK
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it's won, you loser
buddhistMonkey Updated - 20th Sep 2010
@i2fun@... ((( "It's DOLLARS FOOL! haha...." )))

You really are belligerently ignorant. This is the paragraph that you yourself quoted above:

"Korean chaebol Samsung Electronics turned in revenues of 37.89 trillion won for its second quarter, a rise of 17 percent compared to the same quarter year on year. It turned a net profit of 4.28 trillion won ."

Samsung's net profit for last quarter was 4.28 trillion won. The Korean Won is a unit of currency equal to about 86/1000 of a penny. One million won is currently worth just $861.88. Samsung's profit of 4.28 trillion won is equal to about $3.7 billion in U.S. dollars.

What, did you really think that Samsung "won" their profits, in the way that you'd say that you "won" money in a poker game? What a maroon!
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@ShazAmerica Just some links for your lame brain to possibly absorb. In the fact that Apple can't and should never be compared to Samsung in any way shape, form or size. Even though they are both on the same planet, they are Worlds apart:

This is Global Brands from 5 years ago but they haven't changed much in their ratings and if anything it looks better for Samsung than it does for Apple down at No. 41 and Samsung No. 20 then!
http://www.businessweek.com/magazine/content/05_31/b3945098.htm

Now Apple is at just barely breaking No. 39 while Samsung still doubles up on them at No. 20 about to break No. 19 on the Global 100 Top Brands:
http://www.businessweek.com/magazine/toc/06_32/B399606globalbrands.htm

Samsung is working on goals to build revenues to $400 Billion by 2020. Note: They are actually expected to top $200 Billion this year with all other product brands and acquisitions globally. So the triple revenues is a misnomer. When you consider that they showed $180 Billion in revenue back in 2008. Contrary to what your other imbecilic Apple twin thinks Apple may have Revenues of just over $50 Billion this year. If they can pull off another record quarter. Which is very doubtful with the launch of their only two most successful products to date this year already launched! (this link if you actually read it, which I doubt, shows why Samsung is one of the fastest growing corporate conglomerates on the Globe. Run by an Emperor... not the chump in charge of Apple.):
http://www.bloomberg.com/news/2010-08-31/samsung-gets-creative.html

This is dollars fool..... just so you can finally figure out Samsung is indeed bigger than Apple. It's the entire corporate entity to corporate entity comparison, buddy. Not just one small division like the Won thing you are microscopically focused on!

If Revenues for Samsung are 4 times greater than Apple, what does that mean? Do you think it might be because Samsung is bigger than Apple? haha... Quit Aggrandizing Apple! ....they are nothing in the Global scheme of Conglomerates on an International basis. That's why their real value on the Global 100 Brands has them at half that of Samsung Electronics alone!

Actually you need to separate Samsung Electronics from Samsung Group. Which still isn't the entire holdings or value of it's foreign investments Group. Naturally Samsung (a Emperor) founder's son likes to hide huge portions from the South Korean Government's ability to tax it. Like a recent deal to become the largest Natural Gas containment facility (LNG) owner with one project with Royal Dutch Shell worth over $50billion alone!
http://en.wikipedia.org/wiki/Samsung_Group
  • Flagged
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@ShazAmerica
Artikel-Nr.:1523456Artikel-Nr.:1523456
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moderately sized
banned from zdnet Updated - 13th Sep 2010
@i2fun@...
apple will make 65 billion in revenue this year and probably around 80 bn next year. moderately sized? on which planet?
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ah... yes.. right my mistake! lolz....
i2fun@... 13th Sep 2010
@banned from zdnet They made 10.5 billion the first quarter, 11 billion the second quarter and yeah 15.7 billion for the third quarter so 37.2 billion from 65 billion means they only have to make around 28 billion in the last quarter which is close to only doubling what they made in their biggest quarter in their history! Brilliant Deduction... banned from zdnet! ....but you fools only wish Apple could pull in 80 billion next year. Let alone the 28 billion they'd need to hit 65 billion this year. ah... ahmmm you might want to go back to school... buddy! wink

Meanwhile Samsung again...... this quarter has sold far more phones than any other manufacturer on the planet while making half the cost of iPhone 4 off every one Apple sells. Not to mention so much money off all Apple's other products, they're laughing all the way to the bank. Hey.... face it Samsung loves when you sell their parts! lolz.....
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the biggest idiots of all
banned from zdnet 20th Sep 2010
@i2fun@...
is this some kind of parody or are you voluntary making the biggest fool of yourself this board has ever seen. with your screaming and shouting, all your wrong numbers and you don't even understand that korea has a different currency. man, you are an idiot.

first of all for the last 3 quarters (apple's fiscal year ends at the end of september.) they had a revenue of 15,6 bn, 13,5 bn and 15,7 bn which makes them a combined 44,8 in this fiscal year so far. the ongoing september quarter is projected to bring in around 20 bn. so apple will have 65 bn in revenue in fy 2010. and a 25% increase in revenue and profits is projected for 2011 by almost all analysts.

samsung: as may have already stated the korean currency is won (man, you are really an idiot). samsung will have a projected revenue in 2010 of 150 trillion won, which is around 140 bn $ (apple: 65 bn $) and a profit of about 11 trillion won (which is around 10 bn $ vs. apple's 13-14 bn $). so samsung's revenue is higher, the gap will close a bit in 2011 probably, but apple's profits are already higher and will be much higher in 2011.
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i2fun, clueless wonder.
GoPower 13th Sep 2010
50% of the iPhone costs goes to Samsung? The estimated part cost for the 16GB iPhone 4 is $188, so Samsung get $94. Meanwhile the iPhone sells for $199, but requires a two year contract at about $100 per month. So Apple and AT&T walk away with with a gross of about $2600 per phone over two years. AT&T subsidizes the iPhone cost to the tune of about $300 per unit, meaning Apple makes a gross of about $400 per iPhone.
Can you figure out who's making more money? And Apple doesn't have the cost nor the risks of building and running the fab plants. D'oh!
@i2fun@...
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Apple is nearly as profitable as Samsung
buddhistMonkey 13th Sep 2010
@i2fun@... ((( "Apple is a moderately sized 40billion a year corporation. Whereas Samsung is a 200 Billion dollar a year Conglomerate!" )))

You're comparing revenue, when you should be comparing profit. Samsung's profit last quarter was $3.68 billion, while Apple's profit last quarter was $3.25 billion. In other words, Samsung only made 13% more profit than Apple last quarter. Those numbers don't jibe at all with the hyperbolic Giant Samsung/Puny Apple yarn you're trying (and failing) to spin.

http://thenextreporter.com/jg/apples-quarterly-profit-surge-78/088157/

http://www.techeye.net/business/samsung-profits-boosted-by-semiconductors-lcds
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Do You Actually Know How to Read the Difference?
i2fun@... Updated - 13th Sep 2010
@buddhistMonkey
"Korean chaebol Samsung Electronics turned in revenues of 37.89 trillion won for its second quarter, a rise of 17 percent compared to the same quarter year on year. It turned a net profit of 4.28 trillion won.

Read more: http://www.techeye.net/business/samsung-profits-boosted-by-semiconductors-lcds#ixzz0zU3lBhQj

Notice we're talking Trillion vs Billion!!!! Got that? ....and that's Global not what I stated was in South Korea alone. So....... again buddy:

Year on Year with a net Profit of 4.28 Trillion dollars globally in one quarter..... I can buy a whole basket full of Apples!!!!
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$1 = 1,162.70 Korean Won
buddhistMonkey Updated - 15th Sep 2010
@buddhistMonkey ((( "Year on Year with a net Profit of 4.28 Trillion dollars globally in one quarter....." )))

Haha! Samsung's profit last quarter wasn't 4.28 trillion dollars (which is just slightly less than the GDP of China), it's 4.28 trillion Korean Won. That's equivalent to $3.68 billion US dollars.

((( "Notice we're talking Trillion vs Billion!!!! Got that?" )))

Yes, I got that you don't understand international currency.
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i2fun is clueless
alexkhan2000 15th Sep 2010
@buddhistMonkey

Yeah, this i2fun dude is one laughable monkey, comparing the Korean currency "won" to the US dollar. LOL The whole global economy is $58 trillion. The entire Korean economy is well less than $1 trillion while the US economy, the largest in the world, is around $14 trillion.

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

Samsung makes up around 20% of the Korean economy, which is quite significant and a lot of Koreans don't like one company having that kind of power and influence. Heck, the CEO of the Samsung Group, Lee Kun-Hee, was indicted for fraud and tax evasion but the government let him off the hook. That's the type of company Samsung is.

Samsung (along with the other "chaebol" conglomerates in Korea like LG, Hyundai, Daewoo, Sunkyung, etc.) got in the position of where they are through their cozy relationship with the dictatorship government of President Park Jeong-Hee in the 60's and 70's. The government essentially subsidized these companies so they can export cheap stuff all over the world. These companies didn't earn anything on their own. They essentially bribed their way into the position they're in now.

Also, the products of these Korean conglomerates like the Hyundai cars and Samsung phones, TV's, washing machines, etc. cost more in Korea than they do in the export markets like the US. Through their collusion with the Korean government, they overcharge the Korean consumers while imposing very high tariffs on imported goods from the US, Japan and Europe so they can make their profits in the domestic market and sell cheap overseas so they can gain market share and expand manufacturing capacity.

When the iPhone was introduced to the Korean market last year, Samsung and LG went into a panic mode and set off a marketing campaign with a nationalist xenophobic theme telling the Korean consumers that they need to be "patriotic" and buy Korean-made products. Well, the Korean consumers aren't falling for that line and have been snatching up iPhones faster than Apple could provide them. It's ridiculous what these Korean conglomerates resort to. You think Microsoft, Apple and Google are bad? These Korean conglomerates make them look like saints.
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duplicate submission
buddhistMonkey Updated - 13th Sep 2010
N/T
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duplicate submission
buddhistMonkey Updated - 13th Sep 2010
N/T
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@i2fun@...

Next month, Apple will announce that their fiscal '10 revenues will be well over $60 billion after another blowout quarter. Apple's net profits will be very near or more than Samsung Electronics, which had '09 revenues of $119 billion. Let's remember Samsung Electronics also makes washing machines, refrigerators, and rice cookers besides memory chips, TV's, flat panel displays, cellphones, PC's and whatever else plugs into an electric outlet. Let's not even get into Samsung's shipbuilding, housing construction, department store retail, and insurance businesses here.

Samsung is, obviously, very scared of Apple but also appreciates Apple's business because their chips division (and their displays division as well) is all about filling their manufacturing capacity. Their chips and display divisions really don't care where the orders come from although I'm sure their phones and PC divisions would get priority if they had enough demand. The thing is, Samsung's chips and display businesses are their most profitable - not the throwaway (commodity) cellphones and PC's. So, in effect, they want and need Apple's business as well as that of other competitors like Nokia, Dell, HP, Motorola, etc.

Apple will spread out their sources for the components and play them off each other - including LG, Samsung's archenemy. Apple is projected to reach well over $80 billion in fiscal '11 and well over $100 billion in '12. Of course, Samsung is scared. Samsung has been around since, what, 1938? Apple was only at $5 billion 7 years ago and they're just a few years away from reaching $100 billion.

Apple's the number one brand and the most admired company in the world. Samsung is at around 97th, I believe, according to the latest Fortune magazine survey? Apple's market cap will soon be the largest in the world. Even though Samsung's revenues are twice as much as Apple's, Apple's profits will soon dwarf Samsung's income. That's the reality. Samsung is in business to make money and Apple has the money. Apple even prepays for their huge volume orders.

It's up to Samsung's phone and TV (in the future) divisions to out-market and out-sell Apple if they don't want to sell the chips and displays to Apple. In the meantime, Samsung's chip and display divisions can't afford not to take Apple's orders and lose Apple's business to LG and other competitors. That's just how the tech industry works. They call it coopetition.

You have a very simplistic view of the industry. Samsung has no software to speak of, let alone a platform. They're just a hardware manufacturer like LG, HTC, Panasonic, Toshiba, Dell, and Sony (which at least has the gaming platform and the content businesses) and their core business is still selling chips and displays to companies they compete with.

Apple will spread the business around with the growing manufacturing base in China. And Apple will stick to the high-margin high-end of the phone, PC and tablet businesses while Samsung dukes it out with generic Windows and Android machines manufactured by dozens of other companies.

Remember that Apple's market share in the whole handset business (not just the smart phones) is only 3% but Apple's profit share is nearly 50%. In the PC market, Apple's market share is about 4% but Apple rakes in 35% of the profits. And Apple's customers are very happy to pay the premium for the hardware/software integration and a clean, organized, neat, and secure ecosystem that is insulated from the chaotic, fragmented and virus-infested Android and Windows worlds.

Would you rather sell 1 million units of something and make $100K or sell 100K units of something similar and earn $1 million? What's the point of selling many more units when your competitor is earning way, way more than you are with less volume? And Apple's customers are much happier than a typical Samsung customer to boot.

Samsung is a very good world-class company for sure. But their size and trying to build everything under the sun is also their biggest liability. I mean, do you want to see the Samsung brand on your rice cooker and washing machine and dryer as well as on your phone? Even in Korea (and I'm a Korean-American by the way who visits Korea often), Samsung is not a highly desired brand. You can't drive around for a few minutes without the Samsung logo blaring at your face. Samsung is just not cool or hip and never will be.
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How much Samsung pay for the AstroTurf?
Bruizer Updated - 18th Sep 2010
@i2fun@...

With the aount of made up stats and tech figures you have, Samsung must be paying you a pretty penny.

Does your lie of Apple being so far behind Samsung in brand rating keep you up at night? What did your little mind do when Apple blew right by Samsung and left them eating dust?

http://www.interbrand.com/en/knowledge/best-global-brands/best-global-brands-2008/best-global-brands-2010.aspx

Do you loose sleep with the Galaxy S and Tab using an Apple designed Hummingbird processor?
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@i2fun@... Cretin Apple-hater with bad English:

is !-> their
it's -> its

Samsung make the best TVs now. But what can you say about their computers? (almost nothing)
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looks like deep down, Steve Jobs has a lot of respect for google eh
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Flash Support
gizard 13th Sep 2010
The Android based tab's will support Flash, so for me I am sold over the IPad. Apple really need to watch their backs on this one.

Also the information about Samsung intigrating Google TV and Andriod is correct! Sounds like exciting times ahead for Samsung.
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Samsung is a strong company who have established themselves as a powerhouse in electronics of all kinds. So, it is sad that they have linked themselves to Google's spyware OS (until Chrome OS is released), Android, for their phones and pads.

They have their own, Linux based, OS and there are others available, and they are big enough to develop it on their own. As long as they use Android, or Google TV, I would avoid those products.
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Making everyone mad
dragosani 13th Sep 2010
Apple seems to be doing a great job of making everyone angry.

It isn't a good idea to be making so many enemies and burning so many bridges.
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Specially since..
magallanes Updated - 13th Sep 2010
@dragosani

Specially since your new enemies is ten pound gorilla, for this matter, Iphone/ipad/ipod is still designed using Samsung parts.
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@dragosani - I guess Steve Jobs just don't get it. It's not that many people want to tear down Apple because Apple is successful. It's because people don't like Apple's elitist attitude. At least that's why I don't like Apple (plus that their products are not that great; great marketing though). Go Samsung!
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@dragosani "It isn't a good idea to be making so many enemies and burning so many bridges." Unless, of course, you're running for President of the USA, when it seems to be an almost essential part of the vote-winning plan.

There's a well-understood economic "law", known by a number of names, including "Engles' Law" and "The marginal propensity to save". I says that what you spend your money on depends on how much money you HAVE. If -as is the case with the USA - things are rigged so that "the poor get poorer, and the rich get richer", it inherently creates a "bubble", as the ever-richer store their ever-bigger loot in securities. The amount of available securities to invest in doesn't substantially increase... so the price goes up. The thing about bubbles is... they POP.
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In what world? Do people want another $30-$60/month data/voice plan for a tablet? That is the sheer genius of the iPad's no-contract plan 3G/WiFi only iPad made possible because Apple has distribution already figured out. Samsung has to deal with the carriers for distribution so they will see visions of dollar signs dancing in their heads; all tied to a tablet and a dataplan.

It also means no Samsung WiFi only model 100% free of any carrier and given the WiFi only iPad is the most popular version, Samsung's goal of getting 30% of the tablet market share in 2010 is laughable since that would require about 3 million units a month till the end of the year.
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RE: Samsung won't quietly cede ground to Apple
tomlin21-24319035676893835085146735905770 11th Oct
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