hearing the brand name “IPhone” makes it sounds much more appealing. A comparative advantage is usually defined as one company being able to sell a product at a lower price value than another giving it an advantage on the market. In this particular case the iPhone has an advantage over the droid, on average the iPhone is actually typically less expensive than some of the smart phones android has to offer. Reason being the Android has 170 devices that run on their market, as opposed to only 5 devices that run on the iPhones market place. Another
reason Apple has an advantage is based on apples APP store against Androids Market. Both companies give 70% of their revenue profit to the APP producers leaving 30%. With the other 30% Android gives some profit to Verizon, while Apple keeps those profits rather than share with AT&T. Apple has been the front runner of entertainment technology in the last 5-10 years; other industries have begun to understand they can fill the demand of consumers easier than they think. Rather than attempt to innovate a new product they can imitate similar higher demanded product with enough slight differences that they are able to call it their own. Apple has dealt with slight revenue loss due to this, bringing them to file a lawsuit against Samsung. Apple claimed that Samsung was using similar market characteristics as well as using the iPad and iPhone look and feel with its Nexus Z, Epic 4G, Galaxy 4G, and Samsung Galaxy Tab . Apple decided to sue Samsung instead of droid directly because they realized there would be more of a positive an effective approach in dealing with their issue. In conclusion I feel that Apple will win their lawsuit and be rewarded with the money that they deserve. There is no doubt that apple and Samsung have their differences, although there similarities are nothing to be ignored. It would be unfair to allow people everywhere to steal others hard work. Moving forward I look to see apple dominate the entertainment market while other’s attempt to keep up with innovated advances.
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- Fall '08
- App Store, smart phones