Samsung to out-innovate Apple by, um, [SUB: PLEASE ADD REASONING HERE]
It’s hard to expect too much from a TechCrunch op-ed, but there’s no denying this headline grabbed my attention: The Post Post-PC Era: Will Apple, Google, Samsung, Amazon Or Microsoft Win? I wasn’t expecting answers—I’m not crazy—but I was expecting at least a slice of BWUH? from former something or other for Oracle, Peter Relan.
To be fair to Relan, he doesn’t spend his entire time frothing at the mouth over Android marketshare, nor suggesting that Tim Cook should set fire to his eyebrows and let Jony Ive run the Cupertino show. However, he does smack into a wall when trying to predict the ‘winner’ in tablet device distribution channels:
Though Apple owns the market now, Samsung will likely push ahead since the brand seems to be out-innovating Cupertino and may continue to do so on tablets.
That’s a pretty vague statement. Out-innovating Apple how, exactly? Is this a general claim, in which case it’s pretty difficult for Samsung to out-innovate Apple without some kind of time machine, where its designers can scoot back into the past and come out with its iOS device clones before Apple even releases its own products. (Hint to Samsung: Apple’s Time Machine is merely back-up software, not an actual time machine. You’ll have to look elsewhere or, heaven forbid, actually invent one of your own.)
If we’re talking strict distribution channels, I also fail to see where Samsung is out-innovating Apple. It’s certainly out-spending Apple, and it’s also out-flinging-stuff-at-walls-and-seeing-what-sticks-ing Apple, through selling approximately eight billion different devices. This potentially gives Samsung more widespread distribution in certain markets simply through being (in some cases) cheaper—a race-to-the-bottom that’s worked so well in the PC industry. By contrast, the iPad’s available in Apple’s growing number of genuinely innovative stores, along with being possible to buy from countless other stores worldwide. There’s also now the iPad mini, grabbing a chunk of the lower end of the market.
Still, perhaps Relan is right and Samsung will soon truly out-innovate Apple—once Apple releases something new and innovative that Samsung can innovate from in an innovative fashion.
Crazy right? While I agree that Apple got smacked up side the head with the success of the Galaxy SIII phone, there is no evidence that Samsung is doing anything innovative in tablets. The biggest fear might be that Android, in general, is making great strides in market share in tablets and phones. While I am fully aware that Apple is not a market-share driven company, at some point Android’s growth curve has to damage Apple at either the top line or bottom line numbers. Or, both.
“The biggest fear might be that Android, in general, is making great strides in market share in tablets and phones. While I am fully aware that Apple is not a market-share driven company, at some point Android’s growth curve has to damage Apple”
Not sure this is true. Android does lead in worldwide marketshare, but this has come at the expense of Nokia, Blackberry, and the like – Apple has never led worldwide in unit sales, partly because they don’t sell cheap crap. I believe they do lead in profit share, and over the last quarter, they moved into first place in the US market in both unit and profit share.
It’s become currently fashionable to predict the demise of Apple at the hands of Android, but Apple has always done quite well for itself without leading the unit numbers. On the other hand, the only companies currently making any money on Android are Samsung, and possibly Amazon. The former is currently hedging it’s bets with Win mobile and Tizen (why, if Android is such a juggernaut?), and the latter is only making money in a loss-leader sort of way.