MRKT 5000 Case 3.1.docx

MRKT 5000 Case 3.1.docx - Running head CASE STUDY – APPLE...

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R unning head: CASE STUDY – APPLE VS. SAMSUNG 1 Marketing 5000 Apple vs. Samsung: Gloves Are Off Case Study 3.1 Pp. 90-91 of Marketing 2018 Webster University Executive Summary Apple and Samsung are the world’s biggest smartphone manufacturers. Apple is an American multinational technology company that was incorporated in January 1977. They
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CASE STUDY – APPLE VS. SAMSUNG 2 design, manufacture and market mobile communication and media devices, personal computers and portable digital music players. The company sells a wide range of related software, services, accessories, networking solutions, third-party digital content and applications. The company's segments include the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Apple posted 2018 third quarter revenue of $53.3 billion, an increase of 17 percent from the previous year. International sales accounted for 60 percent of the quarter’s revenue (“Apple Reports Third Quarter Results,” 2018). Samsung is a South Korean multinational conglomerate that was founded in March 1938 as a grocery trading store. Samsung Electronics started in 1969 and began taking mobile phones more seriously by the late 1990s (Kovach, 2013). They now produce a wide variety of consumer and industry electronics, appliances, digital media devices, semiconductors, memory chips and integrated systems. Samsung posted 2018 third quarter revenue of $57 billion, an increase of 5.5 percent from the previous year (“Samsung Electronics Announces Third Quarter 2018 Results,” 2018). Sales to the United States accounted for over 35 percent of this revenue (consumer electronics). Samsung continued to lead the global smartphone market in 2018 with 19 percent market share while Apple came in third place with 12 percent. The competition between the two giants has grown fiercer in recent years. Apple has been involved in numerous lawsuits regarding intellectual property with companies such as Motorola, HTC, Amazon, Google, and Nokia. However, Apple was unwilling to take legal action against Samsung due to the company’s role in supplying chips and components that made up 26 percent of the manufacturing cost of the iPhone. In August 2010, the late Steve Jobs and Tim Cook contacted Samsung to discuss their concerns about the company’s use of the Android operating system, which they believed violated several Apple software patents. Specifically, Apple was worried about the Samsung Galaxy S smartphone, a product that was extremely like
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CASE STUDY – APPLE VS. SAMSUNG 3 the iPhone in appearance and function. Apple believed that the Android operating system was causing Samsung to unfairly use Apple’s intellectual property to weaken and imitate the iPhone. Apple was also concerned about Samsung’s plan to release a tablet like the iPad in 2010. After failing to reach a cross-licensing agreement, Samsung released the tablet and Apple filed a patent infringement suit against Samsung in April 2011 (Grandoni, 2012). To varying degrees, each side has won decisions that serve to shape the development of consumer technologies around the world.
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