Many people regularly ask the question: iPhone or Samsung, which smartphone should you buy? And if at the beginning of the 2010s the answer was known in advance, now the situation has changed. Now it is impossible to recommend a South Korean or American product right off the bat. Let's do a little research and decide: will the bitten apple or the green robot win?

Briefly about the iPhone and Samsung brands

First, you should understand that the iPhone is manufactured by Apple (if we don’t talk about Chinese copies, which some narrow-minded people also mistake for an iPhone for some reason). The head office of this corporation is located in the USA, and more specifically in Cupertino. The very first iPhone was invented by Steve Jobs, a legendary leader about whom several feature films have already been made and a biographical book has been written. There is an opinion that after the death of Steve Jobs, their magnificence and some great spirit disappeared from Apple products. But this is just an opinion - in fact, new devices are the result of the work of a mass of engineers, designers and Tim Cook himself, who is now the president of the company.

The assembly of smartphones takes place at the Chinese Foxconn factory. Believe me, similar devices from many other companies are assembled there. So the iPhone doesn't stand out in this regard. These Siemens mobile phones were once assembled in Germany. Apple products have not been produced by Americans for a long time, because they demand huge salaries. And in terms of build quality, Chinese products no longer evoke negative emotions.

The history of the South Korean company Samsung Electronics is no less eventful. But mainly this brand became known due to televisions, DVD players and other similar equipment. In the early 2000s, South Koreans began producing simple mobile phones. And no one then expected that in the future it would result in a multimillion-dollar business. With the development of smartphones based on the Android operating system, a sort of Galaxy sub-brand was formed. It is under this name that almost all smartphones and samsung tablets. And if Apple releases only a few models a year, the South Koreans have a much wider range of products - from very cheap devices to flagships. As they say, you can choose a smartphone regardless of the thickness of your wallet.

Software for Samsung and iPhone smartphones

If we forget about the appearance of smartphones, what else do they differ most from? Of course, operating system. South Koreans install, while the iPhone operates under control iOS. In terms of the number of applications, both of these firmwares are approximately equal.

At one time, Samsung also produced smartphones without a memory card slot. But this period was very short. If South Koreans produce their own memory cards, then why deprive consumers of the need to buy such an accessory? And the Android operating system has recently been working with memory cards without any glitches. You can even transfer many applications to it. In theory, with help you can increase the memory capacity to 300 GB. This is a blessing for a music lover who collects music only in FLAC format.

We give points to Samsung for memory card support.

iPhone or Samsung. Calls, communications and instant messengers

In terms of the quality of built-in microphones, Apple and Samsung equipment are approximately equal. If you are in a large city, then the interlocutor can hear you well, as well as he can hear you. The noise reduction system is well implemented - surrounding sounds are muffled by a smart system. Therefore, you need to decide whether to choose iPhone 7 or Samsung 7 based on the speed of your Internet connection. But here the devices are approximately equal. They have been supporting LTE-Advanced for quite a long time - thanks to this technology, speeds can reach 300 Mbit/s, and in some models even 600 Mbit/s.

It would be possible to focus on social media. But now they are all ported to both platforms. Gone are the days when Instagram existed only on iOS, considered an application for the elite. Now on Android there are a lot of different messengers.

Of course, we can recall the famous Apple ecosystem. For example, many owners of Apple products use iCloud and similar services. If Samsung has such services, they are not popular. But we will not list this fact as a disadvantage. In the end, only owners of at least a few Apple devices notice the existence of such an ecosystem. And there are many such people only in the United States. In our country, people most often are not able to buy at least a MacBook in addition to the iPhone.

We will not give our preference to any of the companies.

Accessories

The Chinese have long established mass production of all kinds of cases designed for smartphones from different companies. But let's talk about official accessories. Cases are created by both Apple and Samsung. At the same time, South Korean products can be more interesting. They can be made in the form of a book, and they have a window on the lid. When you take your smartphone in your hand, this window displays all the most important information. This is not yet possible on the iPhone, since it is not equipped with an AMOLED display.

If we talk about headphones, then Apple has both a wired headset, supplied in the kit, and a wireless one. Samsung produces mainly wired headsets that are part of the Level series. And it must be said that in terms of sound quality they are inferior to the creations of third-party companies. But flagship smartphones Samsung can be connected to a proprietary DeX docking station, as a result of which the device turns into a kind of computer! We will not explain the principle of using the docking station in this article, as it will take too much time. Let us just note that Apple has nothing like this.

If you think about it, there are a huge number of accessories released for Android smartphones. If you buy external battery, then it will definitely recharge your device. But in the case of the iPhone, everything is much more complicated - here it all depends on whether the power bank has passed Apple certification. This also applies to third-party headsets. And many Samsung smartphones have OTG support. This means that almost any peripheral can be connected to them. It could be external storage, mouse, keyboard or even printer - in a word, anything.

The range of accessories for Android is wider, so Samsung deserves another point.

Samsung or iPhone. And who won?

So, Samsung S8 or iPhone 7? More precisely, South Korea or the United States of America? Who scored more points? The South Korean company wins with a score of 5:4. At the same time, you need to understand that it is the flagships that ensure victory. Budget devices do not have a number of advantages that are mentioned in today’s material. However, they are cheaper than any iPhone, and for many people this will be the main advantage.

In fact, the victory was not by a very large margin. Therefore, you should not assume that South Korean devices are much better than Apple products. If you already use an iPhone, then you are not obliged to change it to some Samsung in the near future Galaxy Note 8. It is possible that switching to Android will cause you negative emotions. While it is possible to switch to another platform without much difficulty, not everyone will be able to leave the Apple ecosystem as a whole. It is quite possible that you will constantly think about iCloud, which you have already become accustomed to for several years.

The opposite situation is also true - switching from the flagship South Korean device to the iPhone now makes no sense.

We also understand perfectly well that each brand has its own fans, who will find their pros and cons in both Samsung and iPhones. Share your opinion in the comments. Help readers decide which smartphone is best to buy.

The authorities of many countries are trying to make the lives of ordinary citizens better by all means available to them. That is why a new law may soon be adopted that will prohibit Apple, Samsung, Huawei and many others from selling their electronic devices. We are talking not only about smartphones, but also about many other gadgets, including tablets, smart watches, laptops, computers, all-in-one PCs, TVs and even set-top boxes.

In the United States, consideration has begun of a new law proposed by Jeff Morris. He proposes to ban the sale of all electronic devices that are difficult to repair due to their design. As a rule, these include more than 90% of all gadgets available for purchase. According to the author of the new bill, the idea for its creation came to him while communicating with repair shops, asking them about what they were dissatisfied with and what they would like to change.

Almost all repair shops for smartphones and other electronic gadgets have noted that Apple, Samsung, Huawei and many others are gradually doing everything possible to make their products impossible to repair. The batteries are glued to other components, all other microcircuits are soldered to the main board, right down to the connector USB Type-C, therefore, to replace it, according to the manufacturer’s plan, you need to change the entire main board, and its cost is 40% of the price of a new phone.

The likelihood of the new law being adopted is extremely high, since it was developed in the interests of consumer rights. If it is adopted, it will come into force and begin to operate in 2019. From this moment on, sales of any smartphones, tablets, laptops and other devices that are difficult to repair will be prohibited throughout the United States. In such cases, all manufacturers will have to design their products in such a way that the gadgets are easy and simple to repair.

For ordinary citizens, such a law will indeed be extremely useful, since it will significantly reduce their costs for repairing electronic products, and if they have the skills, they can independently change components in phones. If such a law is adopted in the United States, then absolutely all smartphone manufacturers will have to change the design of their phones towards maintainability, which will also affect the residents of Russia.

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Steve Jobs once said: “We have never been ashamed of stealing great ideas.” But when you are superior in your ability to steal, this is a reason to go to court.

Apple has always been considered an innovator, setting the tone in the smartphone and tablet market. In 2007, when Apple's success seemed unsurpassed, it was difficult to imagine who could compete with it. In the spring of this year, Samsung for the first time managed to get ahead of Apple in smartphone sales, and Nokia in terms of the number of smartphones sold. mobile phones. Moreover, the second quarter of 2012 allowed Samsung to sell 10 million more smartphones than Apple and maintain its leadership.

The legal proceedings initiated by Apple, to some extent, highlight the vulnerability of the company. No matter how much Apple representatives try to maintain an appearance of inaccessibility, the smartphone market is dominated by two manufacturers: Apple and Samsung.

From partners to competitors

They are long-time partners. Since 2001, Samsung has supplied Apple with processors and displays for the iPod. Everything was fine while Samsung was working on TVs and laptops, and Apple was working on iPods and Macs. The friendship ended when Samsung's rapid success in the smartphone market threatened Apple's primacy. In the last 9 quarters, Apple's mobile device sales growth rate was only twice that of Samsung's. Exit first Samsung smartphone Galaxy generated explosive sales growth in the second half of 2010.

In just a year, Samsung managed to almost double - from 17% to 32.6% - to increase its share in the smartphone market. The Galaxy line played a key role in this triumph. In 2011, sales of Samsung phones increased by 46%, despite the fact that 2010 showed zero growth. In the second quarter of this year, Samsung overtook Apple in the vast majority of markets.

What is the essence of the proceedings?

The official start date of the legal saga can be considered April 15, 2011, when Apple filed a lawsuit against Samsung in a California court. Apple lawyers pointed out that 21 models of Samsung phones, as well as Galaxy Tab tablets, are very similar to similar products from Apple and, by their “similarity,” violate the company’s intellectual property rights. It must be said that at the same time, Apple filed a lawsuit against HTC and Motorola, the other major manufacturers of smartphones based on the Android OS.

Apple demonstrated the evolution of Samsung products as follows:

Already on April 22, Samsung took a retaliatory step and sued Apple in Korea, and a week later in the United States, accusing its competitor of violating the rights to technologies related primarily to the 3G communication standard. The proceedings, meanwhile, affected the US, Australia, UK, Japan and most of Europe.

Apple insisted on banning sales of the Galaxy Tab 10.1 in Germany, Australia, the US and the UK and the Galaxy Nexus in the US. As a result, Tab 10.1 sales were banned in the United States as of June 26, 2012. In addition, sales in Germany were banned for 5 months. Only the UK rejected the claim, with Judge Colin Beers saying that Samsung Galaxy The Tab 10.1 is still “not as beautiful” as Apple products, which means there was no theft. In the US, sales of the Galaxy Nexus were suspended for 10 days, but still began on July 9, 2012. Samsung, in turn, managed to ban iPad sales in Australia in the fall of 2011, but attempts to prevent iPhone 4S from reaching consumers in France and Italy failed.

Interim verdict

According to the court's decision dated August 24, 2012, Apple will receive $1 billion in compensation for infringement of six of Apple's seven claimed patents, which is almost three times less than Apple's original request. However, this amount could triple if it is proven that Samsung deliberately used similarities with Apple products.

For Samsung, the amount of $1 billion, in my opinion, is not very critical, given that Samsung received 9% of its income in 2011 from Apple alone, which is equivalent to $10.5 billion. In addition, Samsung has $7.6 billion in free funds on its balance sheet. Morgan Stanley analysts estimate that Samsung could lose 2% to 4% of its operating profit this year due to this trial. However, Samsung representatives have already announced that they will file an appeal. So the proceedings could drag on for years. Until the court has said the last word, Samsung does not have to pay Apple anything.

The worst-case scenario for Samsung would be another ruling in favor of Apple in September if Apple succeeds in getting a ban on sales of smartphone and tablet models that, according to a court decision on August 24, violate Apple patents.

Obviously, Apple is not suing for money. The $2.75 billion in the lawsuit is only 1.7% of the money Apple earned over the past year. In my opinion, Apple went to court in the hope of forcing Samsung, and with it the rest of the manufacturers, to “reinvent” their smartphones and thus waste time. Apple wants to break away from competitors nipping at its heels. Samsung would hardly bother Apple if it didn't release the Galaxy series of products and overtake Apple in the number of smartphones sold. Now Samsung does not need to invent something new; it already makes great money on smartphones and knows well what customers like. And buyers love what's already in the iPhone and iPad.

A hearing on the case on a complete ban on the sale of Samsung products in the United States is scheduled for September 20. It is not yet known which models the ban may apply to: either models released before April 2011, or all models, including the Galaxy S3 and Galaxy Note 2, which are just arriving in stores. Either way, it would be a big blow for Samsung, whose US sales showed the fastest growth of any market in the second quarter of 2012. The US now accounts for 16% of Samsung's revenue.

But in the end, the court may help Samsung strengthen its position. Regardless of the outcome of the proceedings, the conflict with Apple may spur the Korean concern to more intensive innovation. Samsung has both the means and the power to do this. And besides, by going to court, Apple out loud named its main competitor, and this name will probably be remembered by iPhone users. As the loyalty of Apple users inevitably declines, some of them will likely switch to Samsung.

How Samsung managed to get aheadApple?

Copying instead of innovation. Unlike Apple, Samsung has not positioned itself as a pioneer and innovator, but instead follows the latest trends in its markets and demonstrates the ability to adapt quickly. Unlike Samsung, Nokia and Research in Motion realized too late that the rules of the game in the phone market had changed. Hoping to maintain market share, they relied until the last minute on their unique advantages, such as the QWERTY keyboard or the security of services. As a result, Nokia's share fell from 27.5% at the end of 2010 to 7% in 2012, and Research in Motion's share fell from 14.3% to 6.4% in 2012 over the same period.

Relative independence from suppliers. In addition to being the world's largest supplier, Samsung has manufacturing capabilities for displays, processors, memory, chargers and other components in its affiliated companies. Morgan Stanley estimates that Samsung produces 10% to 20% of its components in-house. Our own production allows us to achieve greater compatibility of our components with products from other manufacturers (for example, Samsung Exnos 4412 processors with 3G, LTE data transfer chips).

Its “fast-adaptation” strategy, coupled with its own manufacturing capabilities, gives Samsung a clear advantage over Apple, which buys everything from third-party manufacturers. Apple's problem is that few suppliers can single-handedly satisfy the company's order volume. You have to negotiate with many people.

Price range. Apple initially focused on products “for the elite,” although as a result, the iPhone became more likely to become widespread. Samsung, on the contrary, has chosen a wide price range that can satisfy every user. This has helped Samsung rapidly gain share in various market segments and overtake Apple in the smartphone category and Nokia in the standard mobile phone category.

Approach to users. The difference comes down to the fact that Apple is the “trendsetter” for the next six months to a year. Samsung, on the contrary, is trying to do well what users already love. The less “wow” Apple delivers, the faster the loyalty of iPhone users declines.

Everything would be simpler if Apple and Samsung weren't more than just competitors. Samsung is the main supplier for Apple, Apple provides Samsung with 9% of revenue and more than 20% of operating profit. For both, a damaged relationship will be costly, but both consciously go for it. Their confrontation is just the tip of the iceberg and directly affects the entire supply chain. In the worst case scenario, this war will end with a shift in Apple's orders from Samsung in favor of other suppliers, while, in my opinion, Apple will only be able to reduce its dependence on Samsung, but not completely get rid of it. To understand who needs whom more, you need to understand what two competing companies do for each other. Look .

Smartphones forAppleAndSamsung

Samsung's business model has changed markedly over the past three years, with a clear shift towards smartphones, making it more stable: smartphone sales are less dependent on business cycles. The share of these devices in the company's revenues in 2011 increased from 36% to 41%. In case of Apple iPhone, as it is known, is a key product that accounted for 53% of revenue in the last six months, and in 2011, smartphones contributed 43.4%.

It is worth noting that smartphones are a more profitable business for Apple than for Samsung. iPhone margin is 56%, iPhone 4S operating margin is 43% (after software, the most profitable part of Apple's business). The Galaxy 3's operating margin is 37%, the Galaxy 2's is about 24%, and the Galaxy Note's is just over 30%. But despite this, the operating margin of Samsung's phone business has grown markedly thanks to smartphones: from 11% in 2010 to 20% in 2012, according to Morgan Stanley estimates.

Thanks to the growing share of smartphones in Samsung's business, the average price of devices sold is growing. For example, the Galaxy S2 costs $500, the Galaxy Note costs $600. And taking into account the fact that the Galaxy Note 2 will go on sale in October and in the first half of 2013 year Galaxy S4, price increases will continue. With all this, the average price of mobile devices, which includes both smartphones and regular mobile devices, Samsung's is close to $200, which again cannot be compared with $624 for the iPhone.

So far, rising prices are a positive factor for Samsung, as it increases the company’s margin, while Apple, on the contrary, in order to maintain its share in the smartphone market, is lowering its price, which naturally jeopardizes its margin.

Samsung—largest supplier of components

Samsung owns the largest package of patents in the field mobile technologies, more than 35,000. LG follows with a package of more than 30,000 patents, third position is occupied by Motorola Mobility with a significant margin - 17,000 patents.

In addition, Samsung has leading positions in the smartphone, TV, DRAM, NAND flash and LCD/OLED display markets. It is the world's second largest supplier of components (processes, operating memory, flash memory and AMOLED screens for smartphones).

Apple—largest buyer of components

Apple's list of suppliers (which includes component manufacturers and assemblers) includes more than 150 companies. Not surprisingly, Apple is the dominant customer of a number of component and service providers. This position gives Apple a competitive advantage by allowing it to dictate prices, for example on semiconductor components. In addition, the suppliers themselves are interested in providing Apple with the necessary volume of services or components and delivering them on time. The best technical developments go to Apple at a discount.

Applein the semiconductor market

According to iSuppli, Apple is the number one buyer of all chip buyers in Asia, second (after Cisco) in South and North America and sixth in the EMEA region (Europe, Middle East, Africa). According to iSuppl,i experts, Apple will remain the largest buyer of semiconductor products among OEM companies in 2013. If Apple takes the path to “get rid of” Samsung, it may have to further increase its spending on semiconductor products in the medium term.

Processors and chips

Another important market that is growing thanks to the gadget market: mobile processors and chips. The mobile processor market grew by 43% in 2011, according to NPD In-Stat, and will grow at an average annual rate of 22% through 2016.

It's no surprise that 75% of the mobile processor market is made up of smartphones and gadgets. Intel dominates the computer processor market, while Apple, Samsung and Qualcomm dominate the mobile device processor market. But Samsung is the only manufacturer of processors (A4, A5, A6) for iPhone and iPad products. They account for 8-9% of the cost of iPhone ($15) and iPad ($28).

Applein the display market

The display is the most expensive component of the iPhone and iPad. The display alone accounts for 12% of the cost of the iPhone 4S ($23) and 22% of the cost of the iPad3 ($70).

In 2011, Apple established itself as the largest buyer of displays for smartphones and tablets. According to iSuppli, Apple will spend $9 billion on panel displays this year, double what it spent in 2011 ($4.7 billion) and four times what it spent in 2010 ($2.1 billion). First of all, the doubling of costs will come from expenses on displays for the iPad, latest version which contains many times more pixels compared to the previous version.

First iPhone model I used a display with a resolution of 480x320 - 163 pixels per inch. With the advent of the Retina display, the resolution increased to 960x540 - 326 pixels per inch. The new iPhone is rumored to have a resolution of 1024x768 - 320 pixels. Apple spent more than 80% of all display expenses in 2011 on its Retina Display. For comparison: in 2010 this share was 62%.

Applein the memory market

According to iSuppli experts, the ultrabook market will increase demand for flash memory by only 8% in 2012, while Apple will consume 25% of NAND memory production in 2012, which is equivalent to 8 billion GB. At the same time, 2.8 billion GB will be on the iPad, 3.2 billion on the iPhone (in total, smartphones will account for 5.7 billion GB), the rest will come from MacBook Air And iPod touch. Samsung will consume at least 20% of all orders.

DRAM memory makes up 5% of the cost of an iPhone, but due to a strong decline in the cost of memory in general over the past year, this share has dropped to 3% in the iPad3. NAND memory accounts for 10% of the cost of the iPhone 4S and 5% of the iPad3.

Touch screens

The standards that Apple sets determine where display designers and component manufacturers will move. Apple spends 7-8% of the total cost of the iPhone 4S ($14) and iPad3 ($25) on touch screens.

For example, projected capacitive touch screens used by Apple accounted for 54% of the total touch screen market in 2011. And by 2015 it will be 71%, according to iSuppli forecasts. Projected capacitive touch screen will prevail relative to other types of screens (resistive, matrix, infrared, optical and screens based on surface acoustic waves).

MeaningSamsungForApple

Samsung-made components account for 26% of the cost of the iPhone 4 and 23% of the iPhone 4S. And this is almost $50 on average per device. Clearly, this share varies for different Apple products. Apple's problem comes down to the fact that it can't replace Samsung as its biggest supplier in every way. And even if he can technically, volumes remain a problem for him.

MeaningAppleForSamsung

Apple is Samsung's largest customer. Samsung does not receive as many orders and profits from anyone as from Apple. In 2011, Samsung received $10.5 billion from Apple; in 2013, according to Morgan Stanley estimates, income from Apple will amount to at least 11% of Samsung's total income. All it takes for Apple to abandon Samsung's products and services is for Samsung's revenue and profits to decline. iSuppli estimates that Samsung will generate $7.5 billion in processor revenue next year, which is 10% more than Morgan Stanley's projected processor revenue.

Why will it be difficult for Apple to replace Samsung?

Production capacity volume. The only supplier of processors (starting from A4) for iPhone and iPad is Samsung. It is likely that the litigation will provoke Apple to more actively look for other suppliers. But the problem is that the most obvious option - Taiwan Semiconductor Company (TSMC) - will not be able to cope with orders, since back in the summer TSMC stated that it did not have sufficient capacity to provide the required volume of chips using 28-nanometer technology (this technology , according to experts, will form the basis of chips for the iPhone5).

In addition, TSMC and Samsung use different technologies to produce 28nm circuits. This difference forces Apple to redesign its chips to switch to TSMC chips. And these are additional costs for Apple. However, in the long term, TSMC technology has an advantage over Samsung technology, according to experts. According to experts, Apple will not be able to replace Samsung in the production of A5 and A6 chips, but there may be at least two manufacturers of A7 processors.

Integrated Products. It is worth noting that Samsung, unlike other Taiwanese suppliers, owns the technology of joint, rather than separate, “packaging” of logic circuits and memory chips. This provides an advantage in the medium term in terms of cost and suggests that other suppliers will cost Apple more than similar services from Samsung.

Technological advantage. If Apple decides to expand its list of suppliers, then at least in terms of the availability of capacity for the necessary technologies, its choice will be limited, since only Samsung, TSMC and Intel of all semiconductor companies have manufacturing technologies less than 32 nanometers.

Different panel production technologies—advantageSamsung

Although Samsung is known as the main manufacturer of panels for Apple products, for Galaxy models it has chosen its own method of producing panels.

iPad display panels are manufactured using a-Si TFT and Oxide TFT technology, which is the industry standard technology. Samsung uses AMOLED panels for its Galaxy line of products, which are manufactured using LTPS LCD (low-temperature poly-silicon) technology. The latter technology is more capital intensive compared to thin film (TFT) display. Accordingly, it is easier for Samsung to switch to a common standard if necessary than for other panel manufacturers to switch to LTPS technology, if only because the transition will require additional equipment. Samsung Display (SDI) accounts for up to 95% of the global OLED market.

Samsung has patents on all processes and equipment required for AMOLED panels. The main advantage of AMOLED displays over LCDs is lower energy consumption. And battery charge is the second criterion for choosing a gadget among users after price. Compared to LCDs, AMOLED displays provide greater contrast in images and make red, green and blue colors more saturated, which makes them look brighter. And although the cost of AMOLED exceeds the cost of LCD, the scale of production will allow Samsung to reduce this cost over time.

On the other hand, the advantage of LCD over AMOLED displays is that LCD allows for higher resolution. For example, an AMOLED display cannot have a resolution of 2048x1536, as in new iPad. In addition, there is an opinion that organic materials used in OLED displays may retain brightness less than LCD displays (depending on the type of device). This remark has more to do with TVs; after five years, your TV will be half as bright as when you bought it. But given the two-year replacement cycle of smartphones, the loss of brightness is not so tragic.

Reduce dependencyApplewill help in panelsSharp

The main suppliers of panels for iPhone are Samsung Display, LG Display, Toshiba Mobile Display and Sharp Electronics. iPad panel suppliers include LG Display, Samsung Display and ChiMei Innolux. Although the highest-resolution panel included in the iPad3 was originally made by Samsung, Toshiba and Sharp have stated their intentions to expand capacity in the production of Low-temperature Polysilicon Liquid Crystal Display (LTPSLCD), which allow for higher resolutions.

iPad 3 display has the most a high resolution 2048x1536 pixel format on a 9.7-inch display - 260 pixels per inch. And the only supplier of the first batches of iPad was Samsung, because only it has enough capacity to produce panels using the latest technology. In April 2012, Sharp introduced a new panel production technology based on a new semiconductor material indium gallium zinc oxide (IGZO FTF). This technology (unlike amorphous silicon) allows you to increase the resolution of the display without consuming more power or reducing the brightness of the display. Sharp is launching this production in Japan, where the company encountered production difficulties that prevented it from fully meeting Apple's requests for panels for the iPad3 in March. It must be said that Sharp received “support” from one of the largest assemblers of Apple products - Foxconn, which increased its share to 46.5% in the Sharp LCD business (Sharp has an LCD plant in Japan). Foxconn thus gains greater control over the supply of components for the iPhone, iPad and iTV, and Sharp, in turn, receives the investment it needs. If Sharp manages to achieve the required “quality,” Apple will be happy to reduce its orders from Samsung and thereby reduce its dependence on it. By investing in its partners, Apple maintains control over prices and production of critical components, and can reduce its purchases from Samsung in the display panel sector.

Production strategy (in- houseor outsourcing)

Samsung's share in terms of the volume of devices sold is almost twice that of Apple (32.2% versus 16.7%), but in terms of the share of revenue distribution from the smartphone market, Apple accounts for 28.8% of all revenues and 32.7% for Samsung. The price gap of mobile devices clearly plays a key role here, but production methods probably also play a role.

Apple does not have production facilities for its products and does not produce components for them. Instead, he orders components from all over the world. This gives it an advantage in the availability of necessary components and in prices, mainly due to the lower costs of production and labor outside the United States.

Samsung, by being a supplier of components to others, is able to produce its components cheaper. “Home” production of Samsung components accounts for 10-20% of all components used, according to Morgan Stanley estimates.

Other aspects of competition

I found it very interesting that shares of Apple's suppliers and assemblers did not follow the company's shares, which lost more than 4% after the publication of the report for the second quarter of this year. This is surprising because historically there has been a very high correlation between Apple and its suppliers and assemblers. The term “Apple-related companies” has long appeared on the market. Since Apple has more than 150 business partners, a number of companies whose income actually depends on whether Apple continues to cooperate with them reacted very violently to any changes in relations with the giant and to all its events. However, the calm behavior at the time of Apple's fall may indicate that these companies are already perceived as Smartphone-related or Tablet-related, and not purely Apple-related, as was previously the case.

This is actually a very serious shift in the industry. Less dependence on Apple suggests that competition has increased noticeably, and early “attachment” to Apple allowed suppliers to “grow” in quality. Today, these companies can provide their services and components to other participants in the gadget market, such as Samsung.

And although we are all accustomed to the category of Apple-related companies, we underestimate other customers in this market. My research of this data suggests that many Samsung suppliers depend on their main customer more than Apple suppliers depend on Apple. For example, 6% (or 12 companies) of Samsung's suppliers receive more than 50% of their revenue from Samsung. At Apple, Cirrus Logic Inc alone gets 62% of its revenue from Apple. Of all Samsung suppliers, 58% of companies receive more than 5% of their revenue from it. Apple's share of such companies is 29%.

Conclusion:

The close relationship between Apple and Samsung, of course, requires the rivals to be lenient towards each other, but it seems that the point of “no return” in this relationship has already passed. However, their close interdependence on each other makes this war not just another conflict between two companies, but a struggle for survival that affects the entire chain of participants in the smartphone market, whose capitalization is estimated at more than $200 billion. As dire as the consequences for Samsung may be, the restrictions that Apple may impose, in my opinion, do not threaten Samsung's long-term prospects in the global market. Moreover, I believe that investors should take a closer look at other companies, since the Apple-Samsung trial is likely to spur technological breakthroughs and discoveries in the industry in the near future. And it’s not a fact that breakthroughs will come from Apple this time. Most likely, Apple will remain an innovator and trendsetter in the gadget market, and will probably continue to pioneer new markets (TV). But, apparently, the time has come to admit that worthy competitors have been “nurtured,” despite the high price that some have to pay for the right to be called “worthy competitors.”

I think the history of competition between Apple and Samsung will not be limited to the smartphone market, because Apple is preparing for another triumph in the TV market, where Samsung is one of the dominant leaders in technology, capacity, market share and patents.

Main competitor to Apple in the smartphone market is Samsung. Both companies have many fans. Both new products have their advantages and in some ways lose to each other. What better than iphone or Samsung?

It is worth comparing one with another based on the quality and functionality of the devices themselves, as well as on the level and quantity of services provided by the manufacturer.

Device comparison

Display

It's a matter of personal preference. For one user, the simplicity and cost-effectiveness of the interface is a priority, for another - maximum capabilities that ensure comfortable viewing of video.

IPhone 5 and 5S have a four-inch display, LED backlight, IPS LCD panel, 326 ppi, 1136 by 640 pixels. Galaxy display S4 – five inches, 441 dpi, 1080 by 1920 pixels. That is, when comparing iPhone vs Samsung in terms of image characteristics, viewing comfort speaks in favor of the second, and simplicity and functionality speaks in favor of the first.

CPU

The 5S A7 processor is 64-bit on the ARMv8 platform. The Samsung Snapdragon 600 and Exynos 5410 chipsets are significantly weaker, so in the iPhone vs Samsung comparison, Apple has the advantage.

Memory

Anyone who uses a smartphone only as a communicator does not need a lot of memory. But such a user doesn’t even need a smartphone; he can buy a simpler device. And if a person, say, spends a lot of time traveling, for him this device is a pocket computer that should have everything. This means that the more memory you need, the better. Moreover, Apple itself produces millions of applications.

But in terms of this parameter, in the comparison of iPhone 5/5S vs Galaxy S4, Apple loses by half: a maximum of 64 GB versus 128 for Samsung (64 built-in + 64 – MicroSD support). Likewise with RAM: iPhone 5/5S vs Galaxy S4 – usually 1 GB vs 2.

Nutrition

One of the priority criteria for all mobile devices is battery life. First of all, this is important for those users who spend a lot of time traveling, i.e. for the main target group of the iPhone. And here the iPhone 5 (to a lesser extent 5S) loses to its competitor: the latter’s removable battery (2,600 mAh) lasts for more than a day and a half, while Apple smartphones (1,440 mAh) last for a day. Of course, it is quite possible to find a way to charge the device within a day, but objectively, iPhone 5 and 5S vs Galaxy S4 is the advantage of the latter.

operating system

The operating system as a whole is a matter of taste. In terms of relevance, Samsung regularly updates TouchWiz, Apple - iOS. True, some users believe that the creators of iOS 7 sacrificed the functionality of previous versions for the sake of the beautiful design of the new one. IPhone 5/5S vs Galaxy S4 – a slight advantage for the Korean manufacturer.

Connection

The whole world is switching to LTE ( wireless network fourth generation). This applies to smartphones too. Here Apple is somewhat late compared to the Koreans: all other things being equal, it does not have support for Wi-Fi hotspot and NFC. IPhone 5/5S vs Galaxy S4 – Samsung has an advantage.

Size

Here, user preferences are on the side of minimalist solutions. True, the difference between the competitors is not that great: the new Apple iPhone weighs 112 g with dimensions of 123.8 by 58.6 by 7.6 millimeters, and its competitor (slightly smaller compared to its predecessor) weighs 130 g with dimensions of 136.6 by 69.8 by 7.9. IPhone 5/5S vs Galaxy S4 – the apple wins in terms of size.

Design

By this criterion, Apple is unrivaled, and the aluminum body of the 5S, according to Apple supporters, is the most beautiful among all iPhones. Although the Korean company is also improving appearance of their creations: the Galaxy S4 has an aluminum frame around the plastic body and the shape has changed slightly.

IPhone 5/5S vs Galaxy S4 in terms of design - apple is ahead.

Cameras

The shooting capabilities of the 5S have improved somewhat compared to the fifth model. iPhone 5 is an iSight camera: autofocus, touch focus, panorama, HDR photos, HD video, etc. The next model has the same camera, but with dual flash, f/2.2 aperture, 1/3-inch sensor size, 1.5 micron pixel size.

The Galaxy S4 camera has all the same capabilities. But there are a number of other convenient options:

• Eraser allows you to remove an object from a photo;
• Cinema Photo – you can animate or freeze an object;
• Drama Shot – you can take a series of photos of an object in motion and combine them;
• Dual Video, etc.

That is, here in the iPhone vs Samsung comparison the advantage goes to the second.

Build quality

Samsung does not stand still, improves technology and improves quality. However, to earn the same reputation as Apple products, the Korean company will have to be a genius for quite a long time. The average opinion of many people about Apple iPhones is: “The only device in nature: you turn it on and it works.”

Additional features

Samsung has atmospheric sensors: humidity, temperature, pressure. Apple iPhones have nothing like this. There’s no arguing here: having the basic weather characteristics at hand is a completely useful thing. Since the tendency to combine maximum functions in one device is total, in the comparison of iPhone 5 vs Galaxy S4, Apple loses a point to its competitor.

What else does purchasing a smartphone give?

User Content

Here, of course, the advantage is on Apple's side. This App Store(app store, free and low-cost paid), iTunes Store (music and movies) with a huge amount products – if you use only official content. If it’s also unofficial, there are at least twice as many opportunities. It must be said that in this regard, Apple had a time advantage not only over Samsung, but also over other producers of content for downloads. Now competitors are trying to catch up, an example is the Music Hub music store from Samsung. But so far, regarding the content of iPhone 5/5S vs Galaxy S4, the score is not in favor of the products of the Korean manufacturer.

Software updates

Customers are usually dissatisfied with Samsung updates: either the updates are late or they don’t exist at all (for example, they don’t officially exist for older models). As a rule, by refusing to support old models, the manufacturer encourages users to purchase new ones. But this does not apply to Apple: the company updates software regularly, and this applies to older models too. iPhone 5 vs Galaxy S4 in terms of software is a plus for Apple iPhones: they will not remain without updates.

Technical support

Here, too, Apple is ahead. Such a developed and thoughtful network technical support no other manufacturer has customers.

Based on the results of the Apple vs Samsung comparison, the following is obtained: in a number of technical indicators, the Galaxy S4 is ahead of the iPhone 5 and 5S, but in terms of the totality of all the advantages, Apple products are still ahead, and, apparently, will remain ahead for a very long time.

Never shy about the hype, boss Apple Tim Cook presented on September 12 latest iPhones in a packed room at the new Cupertino headquarters. He made a great prediction: a new premium iPhone phone X (pronounced “ten”) “will lead the way in technology over the next decade.” The phones will be released this November, ten years after the first iPhone came out, the iPhone X has new features such as an edge-to-edge OLED screen ( thin screen, which does not use backlighting), wireless charger, facial recognition technologies and dual camera lenses.

On the same day, rival smartphone maker Samsung held a less publicized event in Seoul. Ko Dong In, President mobile business Samsung Electronics has announced that Samsung may completely rethink smartphones next year and launch a new design with a folding screen that can close like a small book. September 15th new smartphone The premium Galaxy Note 8 will go on sale with many of the features offered by the iPhone X.

Both companies are trying to convince consumers to spend around $1,000 on their new gadgets. New phone Samsung will cost $960; Apple's high-end iPhone X will cost $999, 45% more than the average price iPhone sales in 2016. (The iPhone 8, which is simpler than the X, will be available in September and will start at $699.)

Competition is growing

Consumer competition has been a battle between Apple and Samsung Electronics for years. They are laying claim to a duopoly in the premium end of the smartphone market. Together they control about two-thirds of the global market (Apple claims 44% of the smartphone market and Samsung 22%). The two firms have battled in courts around the world over intellectual property, with Apple accusing Samsung of infringing smartphone patents.

Apple grabbed the premium phone share last year as Samsung struggled with its Galaxy Note 7; the latter's batteries overheated, necessitating a global recall. New samsung phone is expected to win back users. The company copied Apple's innovations, but now it offers new features, says Gartner's Werner Hertz. Samsung first will release an OLED screen.

The rivalry between the companies is only set to intensify (though Samsung is also one of Apple's most important component suppliers, and is expected to provide OLED screens and chips for Apple's latest phones). In rich countries, the smartphone market is close to overheating, with many firms profiting from poaching each other's customers. In emerging markets, especially China, they will compete to convince consumers to switch from cheaper phones. Apple Company worldwide has an 82% customer retention rate compared to Samsung's 67%. That's significantly higher than other firms, especially Chinese manufacturers such as Xiaomi and OPPO, whose less expensive phones have gained share among Chinese consumers in recent years.

Three battlefields

Samsung and Apple will fight on three fronts. One is to develop a better overall software ecosystem and keep consumers within it. “I don't know if it's a smartphone war or an ecosystem war,” says Tim Bajarin of technology consultancy Creative Strategies. Samsung are working on the operating room Android system, which they have no control over, while Apple has the advantage of complete control over its iOS operating system.

The second front will be the battle for virtual assistants. Apple became the first mobile phone manufacturer to offer voice assistant called Siri, which was introduced in 2011. Samsung offers an assistant called Bixby. Both products do not work well enough. But Samsung is investing huge sums to change this, while Apple has been criticized for underinvesting in Siri.

The third battlefield in software there will be augmented reality (AR) or the projection of digital information onto the physical world. Apple and Samsung offer a dual-lens camera that makes it easier to integrate AR features into apps.

There is unlikely to be one winner. Samsung is well hedged; their strong smartphone components business will support the firm if mobile phone sales slow down. Apple lacks this variety, but their mobile devices emphasize luxury and their customers are less likely to switch from the company's products. Mr. Cook may be right that Apple's phones will dictate the direction of technology, but his firm will feel Samsung's breath behind it.