Apple – Samsung = What Kind of Quality?

After hearing this news about a month ago, I decided to post it and get others responses to it.

It seems although they are in a bitter legal battle with each company suing each other, Apple is still doing business with the Korean company Samsung, but for how long? The relationship started because the companies that previously provided the displays for the iPads, weren’t meeting with quality standards and were dropped. These companies included LG and Sharp Inc. Now it seems that because the legal battles that are happening, Samsung will also be dropped. It seems that the new company to step in and win over Apple’s iPad Mini, is Innolux. Innolux already provides Apple with the displays for the big iPad, and iPod Touch, so the change should be easy.

For those of us who have iPhone, we all noticed how the maps changed when Apple and Google parted ways. A lot of us found out that we were driving or walking into the middle of an ocean when we would look for destinations, or the maps wouldn’t fully load correctly, of course now its fixed after a couple of updates. So will another debacle like this happen when they part ways with Samsung? As consumers, we hate it when the quality of a good product continues to decline and there are a lot of Apple consumers who are very happy with the components that Samsung provides to these devices. Not only are they providing the display panels, but they also manufacture the chips for the Apple devices.

The major question that will be looming is will the quality of Apple products start to decline? It’s been said that Apple is dropping Samsung because of the costs that are now being demanded, so will looking for lower costs, lower the quality? I find it natural that Apple would want to drop Samsung because of their legal battles. Why would they want to help and contribute to their competitors? Samsung is stepping up in the technology industry and is becoming a big competitor to Apple and it’s in their best interest to part ways before the blueprints to their best selling devices are found out.

As news of “The Next Big Thing,” the Samsung Galaxy S4 has come out, will it make a splash big enough to make some new converts? I’ve heard some of the new features on the phone and I find them a little bit weird. The biggest one is the ability to wave your hand to switch screens. Just picture yourself waving your hand at your phone and think about how you will look. I’m not knocking it all, I just find it funny. Each phone is targeting different customers, but are always pinned each other for top spot.

Let me know what you guys think about the new move and if it will or will not effect the quality of Apple products. Feel free to chime in on the new S4 as well.

 

http://forums.appleinsider.com/t/156712/apple-said-to-drop-samsung-turn-to-innolux-for-ipad-mini-displays

http://www.neowin.net/news/apple-may-abandon-samsung-for-retina-ipad-mini-displays

 

 

Facebook Home for Mobile Users Innovative? or a Flop?

Facebook wants to takeover your computer, tablet, life, and now your Phone?

The sole objective for Facebook Home is to immediately let you gain access to the social network with just a simple look at your phones screen, and this works without you physically running the app or even unlocking your phone. So in simple words, from your locked screen you’ll be able to see your news feed, posts, and full screen photos posted by friends—not to mention you will also have the ability to comment and like the items you stumble upon.

Facebook Home
Facebook Home “Start Up Screen”

So how exactly is this innovative/different as to other phones with normal software? A Facebook Home equipped phone differentiates itself from other phones as you turn on the screen. You will see the time and a small circle at the bottom of the phone displaying your current profile picture. If you don’t touch the screen, your news feeds, known as Cover Feed (in Facebook Home), will start displaying and automatically scrolling from one post to another. There is also the option of manually swiping through the feed just incase you come across something interesting. On the bright side each post takes up the entire diameter of the screen, giving you the perfect visual. If a photo is posted then it will lighten up the screen and you have the option of double clicking to enter your comment or to add a like. If it’s a text post, the author’s photo will appear transparent in the background. If you swipe your finger to the right, you now engage in Facebook Messenger, where you can directly speak to your friends, while also seeing and receiving your SMS texts.

If your friends are boring and you’re really not an avid Facebook user then I can see this being very pointless and annoying to you. But if your obsessed with Facebook and constantly stalking an ex-boyfriend or girlfriend or cant get enough from just having it on your computer, then Facebook Home might be right down your alley. Then again, the option for Facebook Home is 100% optional when buying a new phone, so Facebook still allows the customer choose whether they want to adapt to Facebook Home or just use the normal app.

iPhone users, you like the idea? Well unfortunately Facebook Home is an optional feature for Android users only. It won’t be running on any Apple products because apple does not allow other companies to take control of the main functions. Though in Apples basic settings you are allowed to sign into you Facebook and Instagram and be able to share content easily. But that’s as far as it goes with Apples strict policies.

Do you think Facebook Home is differentiating the brand in the right way or setting up for a flop in the mobile world? Was it a bad decision to make software that has opted them from the biggest mobile manufacturer, Apple? What are you thoughts?

 

References:

http://online.wsj.com/article/SB10001424127887323550604578412664150862712.html

 

 

 

 

 

Samsung to Take a Bite Out of Apple Enterprise Market

Last summer, Samsung Electronics agreed to customize a version of their popular Galaxy S II smartphone for a health care start-up company that needed a device that would transmit heart monitor information directly to doctors. Since then, it seems that Samsung has officially decided to “play” in the enterprise solutions market. In fact, a Samsung spokesperson noted that Samsung has “made the decision to be No. 1 in enterprise.”

It seems to be a fairly bold statement, seeing as Apple and RIMM have dominated the enterprise market in the recent years. In fact, Apple was said to have recently passed RIMM (Blackberry) as the leading provider of company-issued smartphones and could maintain that position through 2016. (BusinessWeek). The overwhelming majority of large companies are testing iPhones and iPads for employee use.

On the surface it would appear that the barrier to entry in this market is very difficult, if not almost futile. How could Samsung possibly think there’s an opportunity here?  The answer is customization. Apple has a history of cutting edge products, but ultimately doesn’t customize ANY of them. What you see is what you get, and for most, this is quality product that needs no customization. However, Samsung sees an open door. So many companies are now looking for enterprise solutions that will best fit their structure, and Samsung feels it can meet these demands better than Apple or RIMM. By being open to customization as well as working with third party vendors to target specific industry’s needs, Samsung plans to fight to become #1 in enterprise solutions. The company is taking a good hard look at competitors like HTC and even Google, and notice that neither seems to be interested in the enterprise space. The business strategy seems to be to attack a market segment that has not yet been saturated.

Of course, to play in this segment, Samsung must be prepared for the new challenges it will bring. For example, an advantage of Android is that it’s highly customizable. However, it can be a disadvantage for the same reason, making it difficult to standardize security and management software to sell across multiple corporations due to so many different versions of Android currently available. To address this challenge, Samsung has already invested in designing its own software for this purpose which will make all Samsung devices operate consistently.

Samsung will have other challenges to consider as well. For example, the company will need to be sure to market to corporations accordingly to re-brand itself as an enterprise solution provider. Also, it will need to continue to offer a sustainable competitive advantage over time. Finally, resources will need to be reallocated or added to support corporations’ customer service requirements as well as to meet their customization needs.

How do you think Samsung will perform in the enterprise market? What would you say your biggest concern would be if you were the CEO of Samsung?

 

Samsung and Apple Duel in Enterprise Tech
http://www.businessweek.com/articles/2012-12-13/samsung-and-apple-duel-in-enterprise-tech#p1

Got Maps?

I know, I know… Many of us in the Business world are sick of talking about, thinking about, and reviewing how good Apple is doing. My CEO says we need to be more like Apple, be the market leaders, innovators… like Steve Jobs. So it is to my pleasant surprise, when an opportunity comes up to talk about Apple’s mistakes, I don’t mind going into detail.

When the first iPhone premiered, it was not Apple’s strategy to make a GPS, nor an infinitely vast search engine. No, their goal was simple; make a phone that worked, was easy and intuitive to use, and make it look amazing. On every account Apple achieved what they set out to accomplish  When they opened the app store, they revolutionized mobile computing. They changed the way software companies could make money on mobile. Instead of tiny banner adds at the bottom of your mobile web browser, you could buy an app that was worth the dollar. One software publisher was there first, Google. Google brought directions and navigation to Apple’s iPhone. Apple liked it, so it was installed by default. It was simple, easy to use, and it worked wonderfully.

At some point in the last few years, Apple has started to control the App space more stringently. They’ve frequently cited security or legal reasons as to why they would deny a software publisher’s right to sell on the online mobile store. Strangely, with the release of the latest phone (iPhone 5) and the newest operating system (iOS 6) they denied Google the ability to publish the Google Maps App (which was free to download and install), and instead released their own version of the Maps App which was installed by default.

In an uncharacteristic move by Apple. The Apple Maps App was downright awful.  It was unpolished,  difficult to use, often sporting inaccurate or inefficient directions to your destination. If you were so lucky to use it on the new iPhone 5, you have turn-by-turn navigation with a friendly voice who would sometimes get you lost. In fact, the navigation of the new app  was so bad that caused a few incidents, even causing Australia to issue a Public Service Announcement to not obey Apple Maps directions as they could be dangerous.

This week, Apple effectively conceded defeat and allowed Google to once again publish Google Maps to the App Store. Within days, Google Maps became the most downloaded App in App Store history. Indicating both that Apple’s Map application was rubbish and that Google’s Map App did not represent a major threat to Apple’s primary business strategy.

So here’s the key question, if Google and Apple are direct competitors, why would they let Google bring their Map App back? If they’re not directly competing against each other, why ever remove Google Maps in the first place? It is possible that Apple thought they could push Google out, and gain market share. Instead, they upset a huge core of their customers who are now delighted that Apple brought back the real Maps App.

 

http://www.guardian.co.uk/technology/2012/dec/10/apple-maps-life-threatening-australian-police?utm_source=twitter&utm_medium=socialmedia&utm_campaign=gadgetlabclickthru

http://www.guardian.co.uk/technology/2012/dec/13/google-maps-iphone-app-downloaded

The Google Ceiling

Google has a problem.  Google’s problem is that for all their variety of products, their only revenue stream of consequence is advertising.  And for all of the fancy ideas and products they throw at the market, it appears that unless they can take back the mobile handset market with their Motorola purchase (which they do not appear to be positioning themselves to do), advertising is going to be the primary revenue stream for Google for a long time to come.

Google has a business model problem, and the cornerstone of this problem is the fact that while Google is in the advertising market, it has outgrown the market.  In the early years, their growth was fueled by the rapid growth in electronic commerce, and the fact that traditional advertising was not able to drive electronic commerce.  Since then the market has stabilized and Google is the established leader in electronic advertising, with the traditional channels still maintaining print, outdoor, television and other media channels.  If it can be reasonably assumed that the largest growth in electronic commerce is behind us and that the current landscape will be increasingly more mobile where Google has lower market share, Google has limited potential for continued growth in advertising.

Google’s revenue is almost entirely in advertising, and they don’t appear to be branching out any time soon.

For all its searching (and finding) adjacent markets, it appears they only make halfhearted attempts at monetizing these markets.  Take for example the ability to perform mathematics and graphing functions through their search engine.  Before Google entered, WolframAlpha provided this capability through free trials followed by premium memberships which have additional flexibility and capabilities.  However, Google appears to have entered only for the purpose of  limiting the revenue potential of a minor competitor, if WolframAlpha can even be called this.

Meanwhile, Apple and Amazon have established themselves with business models that, while very different from Google, flank and de-position the Google business model.  Apple has built a successful model of obtaining revenue from software, hardware, services, as well as content which Google has not been able to replicate quickly enough.  Not only this, but Apple has clearly been moving away from Google in all elements of their operations, recently even taking Google Maps from their mobile devices – clearly in an effort to eliminate the potential for advertising revenue through popular Apple devices.  Likewise, Amazon has built a successful model entirely based on selling products and online content; if Amazon is the premier internet source for products and content, they also control the advertising of the content and Google is again left out of the picture.

Google needs a 2.0 strategy in order to continue their growth.  This strategy must appreciate, but not limit itself to their advertising market strengths.  This strategy must not simply copy the strategy of Apple, but must provide differentiated value in order to become a significant source of revenue.

Is Apple losing its mojo?

Apple has been at the top of its game for over ten years now. Apple has had great success with its invention and especially with the Iphone. The Iphone was the top selling phone each year that it came out.  Even though it’s been the top selling phone for years, Google’s Android platform is starting to make its way up. According to recent polls and editorials, the Iphone is starting to slip away and more people are starting to prefer Google’s Android platform.

  • The Android platform now accounts for 75% of the smartphone market, which is up from its last quarter’s 68%. Apple’s Iphone dropped from being 17% of the market to 15%. This shows us that people are slowly starting to make the switch from an Iphone to phones with an Android operating system.
  • Apple is known for having loyal customers. Each year there newly innovative Iphone hits the top of consumers’ wish list. It seems like that is starting to change. According to Strategy Analytics 88% of U.S Iphone users said they would stay with the IOS for their next smartphone. That number has dropped from 93% from the previous year. In Europe the numbers dropped from 88% to 75%. This shows that people all around the world are starting to switch from IOS to another operating system.

There must be a reason why Apple fans are starting to slowly switch to Android phones. A big problem that Apple ran into was with the quality of its newest Iphone the Iphone 5. There were many complaints by consumers that there new Iphone 5 came out of the box with scratches or dents. Apple is known for making top quality products, and to produce thousands of Iphone 5 with quality defects is unacceptable. There were reports that this was due to the high demand and that they could not be made in time. It seems like Apple was choosing quantity over quality.

Is Apple starting to lose its touch? Do you think that Apple will be able to recover from the bad rep it got for the quality issues with the Iphone 5?

http://news.yahoo.com/4-signs-iphone-no-longer-smartphone-king-103200005.html

 

 

 

Piracy – Killing the Mobile App Industry

 

There are millions of people who download paid-for mobile apps for free. It has made a big impact on major companies such as Apple and Google. The article talks about a popular app that many of you probably heard of called Plague. Plague is a game that lets players infect a virtual world with pathogens. Within days of releasing the game to the Apple app store, hackers made it available online for free. Up to 35% of the game’s downloads have been illegal, but the game has gotten 1.6 million paid downloads. Had those illegal downloads been paid for, the app would of generated $500,000 more.

There is an obvious issue in pirating when it comes to music, movies, and video games, and now pirates have turned to the app industry, making a significant dent in mobile-app store sales. There are many ways to steal an app such as copying its code and publishing it on an online forum or legitimate app store. Sales would actually be 20% – 50% higher if it weren’t for illegal downloads.

Google, Apple, and others have been increasing security of their app stores by using process improvement, as discussed in class. Google started offering encryption keys along with paid apps to verify the app is being used on the device it was paid for. Many new game publishers are paying for anti-tampering tools to alert developers if hackers are trying to modify an app to steal it. The tools can also prevent the apps from working properly or redirect the user to Apple’s app store.

The majority of app developers do not use anti-piracy tools besides basic ones provided by the stores that sell their apps. It seems to me that it’s not worth it for most developers because some tools will make users go through extra verification steps, making apps more difficult to download and use.  A lot of developers are using a freemium approach, where they have ads on the app for the customers who do not want to purchase it, and ad-free version for those who do purchase it. Also, the people who download the apps illegally will have the ads version.

The developer of Plague says that he “hopes to convert pirates into paying customers by luring them with new features and updates.” In my opinion, I do not think that it will make a major impact by doing that, but it will definitely help a little bit. The article also states that piracy helps promote marketing and advertising for app developers. Overall, piracy has a big impact on the $10 billion dollar app industry

Do you think developers should invest more money to eliminate piracy?

Does piracy help promote marketing and advertising?

Do you think by adding new features and updates to apps, it will help decrease piracy?

 

Let me know how you guys feel about the topic. Here is the link to the article: 

http://www.businessweek.com/articles/2012-11-01/piracy-cuts-into-paid-app-sales#r=nav-r-story

10 things Apple definitely doesn’t want you to know.

To start off, we all know that apple is quite the success story.  They have new products that are sleek, in high demand, and create great marketing schemes for their items.  However, with every great company, there are always some issues.  I will touch on some of those issues that I discovered in an article online from Market Watch.  First, apple customers are worn out.  The excitement over the first iPhone or iPad has introduced “upgrade fatigue” where customers are upset about the overwhelming influx of newer models.  According to this article, when people buy Apple’s latest product, the company is usually already preparing its replacement, said technology consultant Patchen Barrs, who has owned 25 Apple products over the past 20 years.  Patchen goes on to say: “Everything we buy from them is already out of date”  Since 2001, there have been six iPods, two iPod minis, six iPod Nanos, four iPod Shuffles and four editions of the iPod Touch.  Apple has released five iPhone models since 2007 and has had three iPads since 2010.  With these many new releases I feel as though customers will get tired of what “new” product or upgrade is available.  Second, these apps are misleading.  These games are available in the App Store and referred to as “freemium.”  They’re free to play, but only for a certain amount of time or before reaching a certain level, says Damon Brown, author of several books on tech culture.  Third, apple is getting in the way.  There are several theories about why people can’t put their iPhone down. “Apple’s products are addictive,” says Larry Rosen, author of “iDisorder: Understanding Our Obsession with Technology and Overcoming Its Hold on Us.” In fact, many users are aware of their attachment to their iPhones. Some 25% of people see their iPhone as “dangerously alluring” and 41% said losing their iPhone would be “a tragedy,” according to a 2010 Stanford University poll.  Fourth, customers spend more with apple devices.  The average iPhone owner, for example, spends over 10% more on their monthly bills than other pre-paid smartphone users—$90 versus $81—according to estimates by Morningstar analyst Michael Hodel.  Fifth, apple needs another “game changing” gadget.   It’s time for Apple to shake up the mobile market again, says Walt Piecyk, technology analyst with BTIG brokerage. He says a completely new Apple phone that costs less than the $649 starting retail price for the iPhone 4S would be a good start. Sixth, the iPhone is overpriced.  This is basically a continuation of the last point.  In short, they need to offer a more affordable mobile device.  The seventh point touches on how children wanting the products makes the adults want them and visa-verse. The eighth point talks about how apples features are falling behind, i.e. android offers bigger screens, etc.  The ninth and tenth points go hand in hand.  They touch on hooking the consumer for a life time customer and that apple assumes  the customer will stay loyal even if apple screws up a product.

http://articles.marketwatch.com/2012-08-07/finance/33066873_1_ipod-minis-apple-tv-ipad

 

 

iPad Mini, just one of the newest additions to the Apple familyT

 

The iPad Mini just came out this weekend and as always they had a line waiting outside the door. It is sold for around $329 in stores all around. According to CNET.com, it takes only $188 dollars to manufacture. I found this really interesting because it got me thinking of how much money  they can make off every product. There are differneces between how much it takes to make a 16 gb compared to the 32 gb and 64 gb iPads. It costs another $80 dollars for the iPads with more memory in them. They also sell for $429 for the 32gb and $529 for the 64gb.

The iPad Mini looks great, but is it worth buying is what I have been thinking about. Apple has been known for their superior products and are leading their competitors which is the Google Nexus, Amazon Kindle, and the new Microsoft Surface. I think the product will do very well in today’s market because Apple has a reputation of having great products.  Only Apple has come out with a product of their tablet and making a miniature version of it. I think it is a good idea, but the question is, will it sell to their expectations? They are selling their product over $100 dollars more than their competition, and Apple assumes they can do so because you pay more for quality and a credible name. I believe thats why they are charging a significant amount more than other competitors, but they can do so, don’t you think?

It is unbelievable on how much money Apple is making off of their products. The come out with something new throughout the year every year. They have expanded since they started in ’76 and keep on expanding. The net worth of Apple a decade ago was $10 billion and the net worth as of 2012 is close to $500 billions dollars. It is crazy  to think of all that they have done in the last 10 years. I feel as though Apple is just getting bigger, they have not peaked and are still in their prime. They are going to have many new products coming out, and for now, it is the iPad Mini

Would you guys feel about the iPad Mini? Do you think you will consider buying it at any time? How do you feel about Apple and their expansion into one of the greatest companies in history?

 

http://news.cnet.com/8301-13579_3-57544850-37/ipad-mini-costs-at-least-$188-to-build-teardown-reveals/

It’s not an uphill battle that Microsoft is losing, it’s a mobile one

Microsoft recently revealed a revamped version of its Windows Phone software, appropriately deemed ‘Windows Phone 8.’  According to the company, which grabs slightly more than 3% of the international mobile market, the app store has been greatly augmented, though some of the applications will not be available until next quarter.  The article notes that Microsoft presenters mentioned their competitors several times during the unveiling.  It is apparent that Apple and Google-powered phones dominate this space and are setting the benchmark for competitors.  Realistically, however, is there anything to compete against?

Microsoft is, in general, good at what they do; they have a solid product, market awareness, and substantial resources.  This does not necessarily mean they are meant to operate in the mobile phone market, alone at least.  It’s becoming clear that they cannot compete with Apple or Google; consider the app stores: Microsoft now has 120,000 compared to Apple’s 700,000.  While Microsoft has stepped up its game and market share, they are nowhere near the size of the competition.  It is difficult to gain much traction with companies of that size working against Microsoft’s advances.  There is an alternative to the constant, losing battle: if you can’t beat them, join them.  It seems like Microsoft could benefit greatly from a partnership with a large competitor and they should consider exploring the possibility.  To do this, the larger player would have to get something out of the agreement – which might be Apple in this case.  Compatibility, as well as ease of use, between Microsoft and Apple software continues to be an issue, but a partnership could be a game changer in the mobile market.

There are a number of functions that I’m sure many Apple customers wish they had on their iPhones, namely the Microsoft Office product suite.  Business is partial to PowerPoint, Excel, and Word, not Pages or Keynote.  This is problematic for iPhone users when sending these types of documents.  Word becomes a pdf, Excel has limited functionality, and it appears that an independent app is necessary to view a PowerPoint presentation.  Consumers would likely agree with the added value if Apple and Microsoft could work together to solve this issue.

Link to article: http://online.wsj.com/article/SB10001424052970204789304578087062149274482.html?mod=googlenews_wsj