Apple and Samsung, notably, utilize very different business strategies and models within the marketplace; Apple releases few but highly anticipated high-end products while Samsung inundates the market with a wide variety of products. In order to understand Apple’s litigation strategy and the effects on the mobile marketplace, it is paramount the overall business strategies for each respective company are explained and understood.
In the beginning, Apple was very …show more content…
While Tim Cook also believes in Steve Jobs’ former method of new and innovative products, he has been utilizing Apple’s significantly sized market share of loyal customers in order to provide only incrementally changed products while knowing the company’s large and loyal user base will upgrade to the newest devices being produced. Dr. Panos Mourdoukoutas asserts that, “Under Tim Cook, Apple has been churning out new versions of old products that are destined to reach their limits, as was the case with Sony’s (NYSE:SNE) products in the early 2000s. Tim Cook’s Apple has yet to launch a new product that may replace the iPhone, the iPad and the MacBook.”2 The business model of Apple has shifted from the Steve Jobs to the Tim Cook era; Steve Jobs emphasized the construction of brand new innovative technologies whereas Tim Cook has only been producing slightly improved versions of existent Apple …show more content…
Where Jobs was building up a company that almost declared bankruptcy, Cook took over a juggernaut in the tech market meaning it was a much different company than when Jobs was CEO. So far, he has focused on tweaking the already existing products that Apple has released. For example, instead of having any true innovation with the newly released iPhone 5, Cook focused on tightening up many aspects of the existing smartphone model, i.e. the iPhone 4; he increased its size, allowing it to compete with other larger phones such as those created by rival Samsung and cut Apple’s contract with Google for its Maps service and replaced it with a proprietary map system. While there have been problems with the new map service initially, the move allowed Apple to rely less on Google and shore up its own service platform, which will pay off in the future.
As a result of these two differing philosophies, a pattern has arisen within Apple, which has turned into a 2-3 year cycle for significantly new and improved products.4 the first product that is released is the large new hardware upgrade. This upgrade brings new changes such as larger screen, better camera, faster processor, etc. 4 around a year later; Apple then releases an updated version of this hardware, mostly consisting of slight upgrades and new chips. Apple often adds a keynote new feature to each iPhone release along with a hardware upgrade, e.g.