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In the minds of most people, Apple is sexy. They make stylish products that are easy to use. They have sexy stores and enjoyable ads on TV. The high price makes
by pork 15y ago
In the minds of most people, Apple is sexy. They make stylish products that are easy to use. They have sexy stores and enjoyable ads on TV. The high price makes them status symbols. They are massively entrenched and can take advantage of network effects ("all my friends are ipad owners and they love it").
In the face of that, the only rational area to compete in is offering a functionally similar product at a much lower price. But instead of attacking from below and, as the OP said, making consumers question the price tag, Samsung chose to attack from above by matching specs and price point. Riskier move that has now spectacularly failed.
- drivebyacct2 15y ago>Riskier move that has now spectacularly failed. Samsung's sales figures beg to differ. In an extreme, extreme way.
- pork 15y agoYes, it's selling, but... http://blogs.wsj.com/digits/2011/01/31/samsung-galaxy-tab-sales-actually-quite-small/ http://blogs.wsj.com/digits/2011/01/31/samsung-galaxy-tab-sa... http://www.pcmag.com/article2/0,2817,2392422,00.asp http://www.pcmag.com/article2/0,2817,2392422,00.asp And that's not even considering the patent mess that has killed the product in Europe.
- vetinari 15y agoThe articles are about Samsung's first, 7", Froyo based tab. The 10.1 and 8.9 Honeycomb tabs are selling so well, that they are nowhere in stock (you are given about week delivery time on order). And yes, that's in Europe, German judges have jurisdiction only in Germany, nowhere else.
- danssig 15y agoHow would Samsung fight on price here? Amazon is using the Fire as a loss leader. They very likely lose money on every sale. But they make it up on extra Amazon conversions. What would Samsung make up their losses on?
- mgkimsal 15y agosdks and a cut from app sales via a samsung app store. ???