The War of Apple and Samsung

Based from the news article <Apple gets win as judge halts sales of Samsung Galaxy tablet in U.S.> from The Globe and Mail
http://www.theglobeandmail.com/technology/apple-gets-win-as-judge-halts-sales-of-samsung-galaxy-tablet-in-us/article4373484/
mention about the competition and the war of Apple and Samsung.

Generation Y is the people who born in a high tech world.

            When the number of Generation Y increase, mean the demand also increase. The age of having mobile phone is become lower, the number of people having mobile phone is also increase, and some of the people will have more than one mobile phone.

            Before Samsung come in to the mobile market, Apple is the monopoly of the touch screen phone business. He seizes the whole market; the only way that customers want to have a brand new touchscreen mobile phone is from them. But after Samsung become their competitor, they are not the monopoly any more. Apple needs to share the market and customers to Samsung. The diagram below is to show how many per cent of the Apple, Samsung and other company.

            Even though Apple need to share the market to Samsung, but the market of Apple did not go down, because they both decrease the Market of Nokia. The market of Nokia will go down is because they did not improve and product as fast as and not well enough like Apple and Samsung. So Nokia’s market will decrease so much.

Mobile phone market is a hypersensitive market, because any of the new brand phones can competition and shares the market with any of the company. So the only way to maintain their profit is to upgrade their product and to let other people cannot copy their product easily.

The first purpose of coming out the new product in short period is fulfilling the demand and to improve their product to transcend Apple’s I phone. Second purpose is to catch the psychological of the young people. When every time they come out a new product, they will compare to their old product and the other company’s product to show how good is their new product. Than the young people will buy their product and when they get it they will feel they having the best mobile phone and they are in fad.

When there is more people want to buy Apple product, mean the demand become higher (D1 will move to D2), but we can’t see the supply (S) also will go higher. Because the Apple they don’t have enough resource to do produce their product. So the equilibrium point A will also move to point B, and the S did not change, these will become a shortage. And they will make the product become limited. And they will produce a small number is a period.

Samsung and Apple can catch the young people to buy their product is because they try to combine and replace the most of the electronic product into one. Example like now of the mobile phone is not only for calling and sending messages, they also can use to taking photo, recording video, searching information online, television remote control, interphone, and more. Those functions can help people to control more things in one mobile phone. So the demands will just going up and up.

When the demand is going up to infinity, there will be more new seller to come in. Because now of the family can burden the higher price of luxury product. And the mobile phone is one of it, so they will not so care about how high of the price. When the sellers know it, they will try to produce more and upgrade faster of their products.

The other way to let more buyers to buy their product is to make their product become modernization, they modernization their package, their software, and their price. Package is the look of their product, they make more colour and more style in their product. They also make their software more advanced like touchscreen and motion control. Last is the price, just now mention that have more family can burden the higher price luxury, so they set the price between those family and normal family. And this kind of product is elasticity to customers, because the price is higher than the normal mobile phone and it is list in luxury product.

Now there is only two companies can fulfil the demand, there is Samsung from Korea and other one is Apple from US. They have the entire conditional to let buyers to buy their product, so now Samsung and Apple becomes competitor in the phone sector. When every time they have a new product come out the all people and media will focus on them to see who will win the “mobile phone war”.

Mobile phone business can be a short run business, because mobile phones need to change very fast and the fad will pass after a short period. But when Apple and Samsung are in the war, this will become long run. Because the war is to fight whose product is the best, and there will produce new product after each produce and one of the product.

Seen like now Samsung cannot move in to US market, but they still can sell their product to other country and the loss of US market is not a big effect to them. Also they can increase their profit by without the US market. Samsung cannot move in to US market is not a big effect to them, but there is a big effect to Apple, because now there is the monopoly in US and they already kick off their biggest competitor in US market.

However Samsung is fine by the law to Apple, but in the “Fortune Global 500 List 2012”. Samsung is on top of Apple, Samsung is on list of 20 and Apple is 55. This mean the fine did not give too much effect to Samsung, either Samsung loss the US market but he still can survive and continue fight with Apple. Hope that this two company can produce more amazing product.