Korean Consultant says that Apple has no Experience in Chicken Game Competing with Samsung
With Apple about to introduce the iPhone 5S and 5C to the Korean market, Samsung Electronics began to bring lots of new smartphones to the market. In fact, according to the Korean byline "Samsung Electronics is flooding the market with new smartphones." To defend the domestic market, Samsung is pressing Apple with the launch of multiple models. The Korean report states that "Apple unveiled two new models with different price tags, which Apple has never done before. Whether Samsung's strategy will work attracts our attention."
What struck me in this report was a quote by Jung-hyeok, vice-president of Atlas Research and Consulting saying that "Samsung Electronics can sustain a loss if necessary, but Apple's strategy is to maintain a certain level of profitability. As Apple has no experience of the chicken game, it is at a disadvantage compared to Samsung, but if Apple insists on maintaining the profitability of its low-priced product, it will have difficulty competing with Samsung."
It appears that Samsung is willing to sustain a loss in profits if it means being able to retain their empty claim that they're the market share leader over Apple in smartphones.
Samsung's strategy of "flooding the market" is a hell bent philosophy of Samsung's as they've tried this approach in the tablet market which has failed to date. Intel is noted to be supporting Samsung's run at Apple in the tablet space. In fact, Intel just announced that they'll be cutting prices of their Bay Trail CPU's in Q2 2014 by about 40% in order to crack the market against ARM and Apple's iPad dominance.
For now, Apple will continue to focus on delivering a quality product at a competitive price and pass on Samsung's foolish "chicken game."
About Comments: Patently Apple reserves the right to post, dismiss or edit comments.
Comments