Samsung Galaxy and iPhone: Economic Analysis

Topic: Marketing
Words: 551 Pages: 2


Two companies, Apple and Samsung, confidently hold leadership in the smartphone sales market. In sum, the total market share of these companies in the global smartphone market from year to year is about 50%. The main factors that affect the demand and supply in the smartphone market are the price, the issue of consumer tastes and preferences, advertising, and consumer income and purchase frequency. The recent Samsung reports show that the quantity demanded is expected to rise during 2022 (Jaisrani, 2022). In order to satisfy the significant demand, the company integrates new technologies such as the mechanism.

Moreover, the company strengthens its position by uniting with BOE and CSOT, which can potentially create a competitive advantage for the brand (Jaisrani, 2022). It can be noted that by implementing the mentioned changes, Samsung affects the determinants of demand and supply. Regarding demand, the company strives to implement innovative technology in order to affect the preferences of the customer. In the case of supply, the most affected element is the technology of production which also involves the expectation of changes in the prices.

Apple launches its smartphones roughly once a year, with a trend towards shortening the time between new models to market. On the one hand, it helps the company reduce costs and maintain demand for its product. Thus, the company allows consumers to change the smartphone model in less than a year, which should somehow affect consumer satisfaction (Wanjala, 2022). This allows the company to track consumer preferences and, with each newly released model, to be closer to creating a phone that fully satisfies the target audience, thereby shifting the supply curve to the right, which depends on non-price factors (Wanjala, 2022). However, today’s reports show that Android systems own the global domination of the smartphone market. Such a situation is directly related to the preferences of the customers. When the public’s desires, emotions, or preferences change in favor of a product, the quantity also demanded increases. The Android designers, including the Samsung brand, provide more extended smartphone variants, including different designs and price categories. Such actions satisfy the customers’ interest making the demand elastic. However, Samsung sells more but has less profit. Furthermore, this is logical because the company’s range of phones covers the entire segment of mobile phones, and Apple devices belong to the middle (SE and iPhone 11 models) and top segments.


Therefore, it should be said that Apple does not offer a wide variety of its products, does not conduct an aggressive advertising campaign at present, and provides a high-quality product, a very prestigious product, and a top-class product that is very simple and convenient to use. This is also its primary value-creation strategy. As for Samsung, it acts more opposite of Apple: it offers a wide range of smartphones with different characteristics at different prices, conducts an aggressive advertising campaign, and is more accessible to consumers of various segments of the population than Apple smartphones. Both companies’ products are very high quality, and both firms invest heavily to improve the production process, reduce costs and improve product quality. Samsung is more successful in adjusting to the consumer’s income factor, as it offers consumers a more comprehensive price range of gadgets. If the consumer’s income falls, he will be able to buy a cheaper gadget.


Jaisrani, A. (2022). Samsung is changing supply chain for galaxy smartphones to meet increasing demand. Tech4Gamers.

Wanjala, A. (2022). How many phones does apple sell compared to android? MUO.

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