For today’s business news, I would discuss the CNN Money article about “Apple is setting up shop in Samsung territory“.
The battle between these two smartphone leaders has now reached far beyond the market share and lawsuits. Now, Apple is targeting to open up their first Apple Store in Korea. This move would surely affect Samsung in terms of market share and profits because they really got a serious competitor in Apple.
Talking about the smartphone market where a lot of manufacturers have entered, it is currently lead by Samsung with 21% and closely followed by Apple with 12.5%. With the stiff competitions on the smartphone industry, the two are the clear front-runners and with this strategy of Apple to sell directly to the home country of Samsung, the gap between the two might reduce.
With the technology rich country of Korea, as well as one of the active users of social media, Apple have made a good decision. The existence of a direct competitor is a good sign for the consumers because it would result to satisfied consumers. Though, the bad thing in this scenario is that other small manufacturers might not be able to capitalize anymore.
If before, the choice was between Samsung and the small players, this time, it might boil down between Samsung and Apple which in the long run, might result to few earning manufacturers. This is really a double-edged sword that might be beneficial to one but not for the other or for the rest.
This is really something that all players in the smartphone industry must prepare for. Though it is one among the many countries in the world, Korea is a huge smartphone market because their people are very technology dependent and if not, they are technology literate and with this move of Apple, the market shares would surely be affected. Thanks for the read and have a nice day ahead!