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Both Amazon and Samsung Electronics have unique advantages in the tablet market (e.g. Samsung makes the iPad's CPU), and their market capitalizations are simila
by zeteo 15y ago
Both Amazon and Samsung Electronics have unique advantages in the tablet market (e.g. Samsung makes the iPad's CPU), and their market capitalizations are similar. Calling one an elephant and the other a chicken implies a difference of impact of about three orders of magnitude.
- raganwald 15y agoThe metaphor applies to their market strengths, not their market capitalization. Samsung does have manufacturing prowess, which lowers its cost per unit, which allows it to compete with Apple on price. I get that, I really do. What I don’t get is how it sustainably competes with Amazon on price. I’m not sure that manufacturing prowess is going to make up for such a disruptive business model asymmetry at the low end.
- zeteo 15y agoThat's fine, but we must also keep in mind that the difference in competencies can also lead to different definitions of success, of which Samsung's might be less visible. Samsung can still make a pretty good impact with a strategy for a symbiotic profit-sharing agreement on the iPad (Apple doing the OS and marketing, and Samsung supplying crucial hardware); with the Galaxy as a sideshow, its only purpose to achieve a good bargaining position vs. Apple regarding the profit shares.
- raganwald 15y agoI like this, thanks. Reminds me of the plotline from the novel “Shogun,” where Toranaga has Anjin construct a ship jsut so he can burn it as a bargaining concession with the Portuguese.
- martythemaniak 15y agoI find it extremely unlikely that Samsung is interested in being a mere manufacturer. In fact, the entire economic development of East Asia has been a decades long story about starting as small, cheap manufacturers and moving up the value chain into global brands. Samsung is not quite-there yet, but I find it silly to suggest they'll suddenly stop and start regressing.
- bookwormAT 15y agoGreat, thanks for the spoiler. I was just about to finish that tome. :/
- nrao123 15y agoDon't forget the sacrifice of the queen (Mariko) as well!
- roc 15y agoTo say nothing of Amazon's proven ability to extend and differentiate Android and integrate it's own popular media applications. Even if Samsung could manufacture tablets that matched Amazon on specs, the price delta couldn't possibly be large enough to attract a consumer to stock Android media apps over Amazon's offerings.
- phil 15y agoe.g. Samsung makes the iPad's CPU Not for much longer, I think.