BUS508
HOW NEWS LIFTS OR
SINKS WORLD STOCK
JUNE 2013
1
APPLE VS. SAMSUNG
2
OUTLINE
1. Profit after the crash and any
unethical practices
2. Change in consumer demand
after 2000
3. Growth strategies of Apple and
Samsung
4. Conclusion
3
PROFIT AFTER THE CRASH –
APPLE
Steven Jobs returned to Apple in 1997
Collaborated with Microsoft, AT&T, and
CompUSA
New products
Stock price hit $200 in 2007
Operated with a $9 billion dollar surplus
of cash (with no debt)
4
PROFIT AFTER THE CRASH –
SAMSUNG
Product innovation
Stylish and innovative products
Technology innovation
Develop key technologies and core R&D
Marketing innovation
Create fresh approaches to every level of
customer contact
5
PROFIT AFTER THE CRASH SAMSUNG (CONT)
Cost innovation
Control cost to encourage innovation and
increase market impact
Organizational culture innovation
Freedom to learn from mistakes and
succeed
Global management innovation
Localize product strategies to rapidly seize
major opportunities
6
UNETHICAL PRACTICES - APPLE
Patent infringement
Apple could owe Samsung over $400
million
Royalty rates of 2 -2.75% payable to
Samsung
Legal battles among Apple, HTC,
Motorola Mobility, and Samsung
250,000 patents in dispute
7
UNETHICAL PRACTICES SAMSUNG
Patent infringement
iPhone and iPad technologies
Siri
Apple was awarded more than $1.05
billion
Samsung to pull its Galaxy 10.1
computer tablet from the U.S. market
8
CHANGE IN CONSUMER
DEMAND
9
APPLE STOCK
10
SAMSUNG STOCK (IPO IN DEC
2007)
11
NET INCOME COMPARISON
(BILL $)
12
APPLE VS. SAMSUNG STOCKS
13
GROWTH COMPARISON
C O L L A B O R AT E S
WITH SUBSIDIARIES
UNITES
SUBSIDIARIES
14
GROWTH COMPARISON (CONT)
15
GROWTH: IPHONE VS. GALAXY
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GROWTH: THINKING LONGTERM
Revolutionary
Big disruptions in smart phones- bigger...