Samsung vs Apple—No-Kia?
stefanie is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Nokia (NYSE: NOK) might be a Finnish company but if we split the two syllables, we have two words. One is English and the other is Korean.The word Kia derives from Korean words meaning "to arise to the world from Asia" according to wiki.answers.com. The soul of the matter is that the battle that loomed between Samsung (LSE:SAMC DL) and Apple (NASDAQ: AAPL) is not just about patents. Apple does have an edge on the first to come out with something spectacular argument. Is Samsung’s sin like plagiarism for a writer? Are they professing mea culpa then about patent infringement? More likely, rotten tomatoes were thrown at the verdict that made innovation and market dominance of android phones a faux pas. Samsung dared to go head on with the big Apple. The Korean company, Samsung, is the emerging company that proved that YES, it can happen in Asia. So what did the laggards have to say?
Nokia and Microsoft (NASDAQ: MSFT) will both benefit from the verdict as they want to have a large share of the US smartphone market. If Apple pioneer Steve Jobs were in the thick of things, what would he do? Ironic that Nokia workers lost jobs due to cost-cutting measures of the company. Samsung, however, is a big employer of Koreans. It is involved in a lot of businesses in that country. Microsoft is big enough to buy into Nokia. They already partnered last year. That is what a few are speculating. Seems like a smart move.
Back to Apple’s supposed sour win over Samsung. Isn’t victory supposed to be sweet? The more than $1B it was awarded is not artificial sweetener. What is the public perception anyway?
- Who will be Apple’s next target?
- Who has the best value for money?
- How were the stock prices of the players affected?
Apple seems to be doing a Microsoft move when it comes to protecting its intellectual property. Of course this has to be enforced but remember Microsoft also lost because it got too greedy. Samsung smart phones are priced just right and many mobile phone operators are bundling this in with their plans. Microsoft, with its war chest will not be able to switch consumer preferences that easily. Apple iPhone is seen as pricey and a status symbol. Nokia’s Lumia is not shining brightly as expected.
If stock market movement is an indicator of investor sentiment, Apple, Microsoft and Nokia did not seem to have made that leap. Nokia’s stock is down 29 percent, Microsoft went up less than 1% and Apple climbed 1.9%. Samsung did take a beating when its stock fell 7.5%.However, Samsung’s galaxy is still shining brightly. It will not succumb to momentary setbacks.
The iPhone 5 is already out amidst all the hype. The problem with Apple is only one model comes out every year. Samsung has a wide range of android phone models that are out. This is a curious East vs West head-on. Which will rule in the long run? Some key things to consider are:
- Branding and loyalty
- Value for money
- Great applications
Apple is higher in brand recall compared to Samsung and it does have its loyal followers. Some continue to buy Apple products for sentimental reasons, It is one of the leaders in innovation. However, it protects its platform scrupulously that anything that comes near its looks is said to be a copycat. Samsung has an edge over the value for money criteria since its price is affordable. Both are user-friendly and have great applications.
The market for smartphones is big enough for everyone to profit. Protectionist moves will only kill the aggressive competition that sets winners apart. Would you rather be backed by the American big brother or let the market decide? That is the heart and soul of the matter. You decide.
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stefsoriano has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple and Microsoft. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.