Monday, January 31, 2011

1st Place Always Wins the Race..... Apple won, Sorry Samsung.

In an article from wsj.com Samsung's Galaxy Tab sales are reported smaller than expected. They sold around 2 million to distributers but the statistic has nothing to do with the actual consumer number that have purchased Samsung's version of the iPad.

"She added Samsung was “quite optimistic” about 2011 sales but wouldn’t provide a forecast. “As you know, the tablet is relatively new and we need to see how the market develops before we give any firm numbers,” Ms. Lee said."

It's obvious that the reason for Samsung's Galaxy Tab's sales being so low is due to the popularity of the iPad. Apple's first version of the iPad was released in April 2010 which was 5 months before the Samsung Galaxy Tab was released. Even if the iPad and Samsung Galaxy Tab's release dates were switched there would have been no contest still between the two touch screen tablets. The fact is that Apple is more popular. What was Apple's latest introduction before the iPad? The iPhone which revolutionized the social media industry forever and is now an icon in our society. What was Samsung's? The Galaxy S, a smartphone that a majority of people have never heard of, it sounds like some distant place where monkeys rule the world. Apple got to the market first and bought up every customer that Samsung could have dreamed of having and with every new product they continue to increase the amount of consumers buying the Apple brand products. And now Apple owns the market. For example look at this screen shot of the article I mentioned earlier in the post:

Yes, that is an Apple iPad directly on the screen next to this:

"Pressed by an analyst at an investment bank, the Samsung executive, Lee Young-hee, acknowledged that sales to consumers were “quite small,” though she didn’t give a specific number."

Items in the market place sell because they are cool, and "cool" is a scarce resource. When people look to invest in smart tab technology they don't want something unrecognizable they want something everyone has heard of and that everyone has. I couldn't go up to half of my friends and say what do you think about the Galaxy Tab? Because they would think I've been watching Star Trek all day. I could go to my friends and ask about the iPad and they would say, "oh yeah, it's cool! I played around on one at the Apple Store." Even if the technology Samsung possesses is equal to that of Apple they still don't have the name Apple. Maybe this thing could have been more successful if they called it the iGalaxy Tab, but Apple probably has copyrights to the "i" so they'd still make more money than Samsung.








7 comments:

  1. Apple has not always been 'cool'. How did it become such a consumer favorite?

    Is it dangerous for one company to be so dominant in a market?

    Do you think Android tablets will be able to compete as Android phones have been able to with the iPhone and is this a good thing?

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  2. Great analysis. Along the same line as Kern's thoughts, what makes Apple products desirable to the masses?

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  3. I'm very surpised that Samsung seems to have completely failed with their tablet. Samsung is a very successful company, and I would've thought they would have been at least somewhat competitive. I know they could never beat Apple, but I think I just didn't realize how dominant Apple really is in the tablet market.

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  4. With the success of the iPhone before it and the new iPad selling well its no surprise to me that Samsung is having a hard time making headway in the tablet market. When Apple creates a product it usually takes the market by storm these days. I think Apple had already set themselves up for success with the iPhone and that Samsung is late to the party.

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  5. I agree with Easton that Samsung is just too late with the product. The iPad got all the gadget people hooked first. I think the success of the iPhone is what has helped Apple become so popular. I think that the iPhone itself helped make the iPad popular because everyone already loved the iPhone and it was basically a larger version of itself. I do think some people will consider the Samsung version of this tablet, but it will probably be a small market. I bet it will be people who do not own an iPhone.

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  6. To Kern:

    Apple has become so powerful in the market because of the user friendly functionality of it's products along with the marketing skills of Steve Jobs. The more colorful creative look of Apple's products compared to the average mundane PC version make Apple much more 'hip' and 'cool'.

    With a company like Apple dominating the market I don't see a problem because they really are creating new products that are changing the world as we know it. So when a company like Apple dominates the market it's a consumer positive because the best products are always readily available because of their high demand.

    No, I don't think anything Android will really be able to compete with Apple products. Especially since the Apple iPhone is now available to the Verizon consumers.

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  7. To Smith:

    Apple products are straight up more fun than the others. For example PC has FreeCell and Apple has an AppStore with 100,000 versions of FreeCell..... Apple wins my vote.

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