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Samsung vs. Apple: An Economic Analysis

The latest deabte over legal infringements between Samsung and Apple.
by

Jayden Blackwood

on 14 September 2014

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Transcript of Samsung vs. Apple: An Economic Analysis

The Great Patent War: The Legal Battle between Samsung Electronics and Apple Inc.
Analysis of Current Situation
Apple claims that numerous patents such as the multi-touch function, and headset recognition device were copied by Samsung
"Samsung and Apple are the No. 1 and No.2 smartphone makers globally, respectively." (Reuters.com)
U.S international trade commission banned importation of select older Samsung models as of August 9, 2013.
Graphs and Notable facts: Apple
Apple has done extensive research on their products, and have devised a near-perfect pricing scheme for their products.
Apple's products are very elastic like any other technologies (ex. Samsung), however prices are set high to begin with. Therefore Apple retains a high profit margin.
Impact on Stakeholders
For consumer, there is less choice of Samsung mobile device for them. Resale of some older goods is banned.
Wholesale/Warehouse sellers must destroy or export their older model Samsung products to Canada or other countries.
For Apple, instead of buying used Samsung phones, second hand buyers will now turn to buying older Iphones/Ipads. Minor demand increase.
Samsung loses profit in the U.S, and must now charge more for newer models to compensate for this loss.
Thought provoking question
Given the current ban on some Samsung imports and sales in the U.S, if the same thing happened to Apple in Asian markets, what would the effect on Apple be? Would this have a significant change on the worldwide smartphone market?
Summary
In the latest legal battle between the two multinational tech giants Samsung and Apple, Apple claims victory over patent infringement by Samsung. So far only older model phones have been banned. The court ruling could spell out trouble for Samsung in the near future if Apple continues to attack Samsung through such minor infringements.
Graphs and Notable facts: Samsung
Samsung uses the Android operating platform which accounts for 79% of smartphone shipments in Q2 of this year.
Samsung is the most popular phone running the Android platform.
With a more creative development unit Samsung has introduced more features into each new phone compared to Apple
both companies hold a combined 65% market share of all U.S. smartphones (August 2013).
Graphs for Samsung
Graphs for Apple
Full transcript