Editor’s note: This article is from the micro-channel public number “stack outside” (ID: zhanwai_), Author: Toni Koraza, 36 krypton release authorized.
▪ In the era of smartphones, major companies are competing to release technology products, and the battle between Samsung and Apple is most notable.As a former leader in the electronics field, Samsung has held the number one position in the smartphone market for nine consecutive years, with four times the revenue of Apple.But since 2007, Apple’s revenue has soared and it has become the world’s richest listed company.
▪ In order to reverse the situation, Samsung began to invest heavily in marketing, launching different types of commercials with rich plots and ingenious ideas, striving to explore the most effective marketing methods and grabbing the attention of consumers.
▪ However, the battery explosion in Sansung Galaxy Note 7 caused an uproar in society, and the company lost billions of dollars.Today, new competitors have appeared one after another, and some have successfully established a foothold in the smartphone market with superb technology and high popularity. Although Samsung is still the industry leader, but with the development of technology, its position in the smartphone marketPerhaps a fundamental change will occur.
Original text from Medium, author Toni Koraza
As we all know, the past decade can be said to be the era of smart phones.Everyone has gradually moved from a bulky desktop computer to a more compact smartphone.Bank accounts, family albums, work… Almost all virtual existences in life can be controlled in one hand.
In 2007, Apple launched the iPhone for the first time, and then quickly swept the world.This first modern smartphone became a symbol of prestige and achievement.A year later, Apple launched its first app store, including about 500 of the earliest apps, which brought another revolutionary impact to the mobile phone industry.
At that time, Apple’s technology was far ahead of other manufacturers.Industry leaders such as Nokia, Siemens, and Motorola are facing a crisis of survival, and some companies may never be able to rise again.At the same time, Samsung is working hard to solve problems such as flip phones.
Legend: Samsung flip phone in 2007.
At the time, Samsung was a leader in consumer electronics, with four times the revenue of Apple.However, since the iPhone revolution began in 2007, everything has changed.Apple’s revenue and profits have soared, making it the richest listed company in the world.
In the past ten years, the quarrel between iPhone users and Samsung users has been constant.
Prior to the recent rise of Huawei, Samsung has been firmly on the top of the market for nine consecutive years.Apple ranked third, with market share fluctuating between 10% and 14%.Although Samsung’s sales volume is significant, Apple’s revenue is even greater.
Legend: Global market share of mobile operating systems.
Samsung mobile phones are called gadgets used by the weirdos in “The Matrix”, and almost no one likes them.However, once the company takes marketing seriously, sales of mobile phones will increase significantly, leaving the iPhone far behind.
Advertising battle with Apple
In terms of smartphone sales, Apple has a two-year lead.At the time, Samsung was producing different devices, but did not design smart apps, and it was difficult to keep up with the changes in the iPhone.
Samsung’s first smartphone was the Galaxy S.This phone uses the Android operating system and became one of the most powerful phones in 2010.
Legend: Samsung Galaxy S mobile phone.
However, Samsung’s new Galaxy S series has puzzled consumers.At that time, the manufacturer had nearly twenty different devices around the world, but adopted the same name. This is contrary to Apple’s strategy of launching a mobile phone with a different name each time.
Samsung’s TV commercials mainly focus on technical functions.The company prides itself on its superior performance, and users can enjoy the general movie theater feeling when watching videos.
At the same time, Apple was addicted to 30-second video ads, and Samsung followed suit, following a similar strategy.Samsung’s initial marketing campaign was not bad, but people’s demand for the iPhone is increasing at an unprecedented rate.
Legend: iPhone’s quarterly sales.
The Galaxy S eventually sold 25 million units, which is a big success in terms of data.But this series of products can not be compared with the then Apple champion iPhone 3G.The sales of the latter far exceed the former.
The iPhone plays an important role in the field of smartphones.The whole world is crazy about everything about Apple.
Double the marketing budget
The early Galaxy S ads were basically the same, all about the phone specifications.
Samsung often brags about its screen quality, new apps, and the supremacy of smartphones.However, its ads did not even mention users.The same is true of Apple, whose 30-second TV commercial is like the opening of a Hollywood action movie.
But people still flocked, sometimes queuing all night, just to buy the latest version of the iPhone.
In 2011, Samsung began to take action to double its marketing budget.The company’s budget eventually grew to more than $12 billion, making it the world’s largest advertiser.
The Samsung Marketing Department has launched all types of commercial advertisements, as if throwing everything to consumers, just to verify which advertisements are really effective.Some ads focus only on the device itself, some talk about the iPhone, and others focus on Galaxy users.
In the same year, Samsung surpassed Apple in smartphone sales, accounting for 23% of the market, compared with 14.6% for Apple.In 2011, Samsung mobile device sales reached 300,000 units, and cumulative sales reached 1.6 billion units, which is a crucial milestone.
Samsung Galaxy S2 series phones still confuse consumers, and the company is still releasing different versions of phones with the same name.But its team is working hard to explore the most effective marketing methods in the next decade.
The Galaxy S3 is the first true iPhone challenger.With 70 million units sold, this phone has become the second best-selling Android phone ever.Samsung is investing a lot of money in the advertising department, and its 2012 budget is nearly $4 billion.In the same period, Apple’s spending was less than 1 billion US dollars.
Samsung has adopted a unique new narrative method in advertising.TV commercials in the United States last a few minutes, while Apple’s commercials only last 30 seconds.Samsung Galaxy’s advertisements are cleverly conceived and the plot is rich. Heroes and villains appear in each advertisement, and they all witness a happy ending.
-Heroes: Galaxy users
-Villain: iPhone (not user)
-Problem: Hypocritical reputation, inferior technology
-Plan: Acquisition of Samsung
-Failure: Queuing to buy inferior products
-Success: Spend quality time with family and friends and witness major technological progress
Samsung improved its own advertising and began to hype it up.Although its TV commercials never explicitly mentioned the iPhone, everyone knew it.
Legend: People are lining up in New York to wait for a new iPhone.
In a special ad posted by Samsung, a group of people are waiting in line to buy a new device. They look excited and keep talking about all their expectations for mobile devices this year.Some people also plan to help others get a seat.
Two Galaxy users passed by, and all of their new phones were amazed.People realize that the products they have been waiting in line are already outdated.
The Galaxy S4 also successfully took the throne of the smartphone industry through the same strategy.Galaxy advertising protagonists are also passers-by and iPhone consumers:
The Galaxy series is simple and fashionable.Samsung phones have features that the iPhone does not, and smart consumers will choose Galaxy.
At the same time, however, Samsung experienced a series of manufacturing disasters.The company recalled millions of products and lost billions of dollars.
One of the most striking is the Galaxy Note 7 and its battery explosion.This phone is claimed to be the top product and won praise from customers, but its sudden explosion caused a stir in the international market.
Galaxy Note 7 is the only mobile phone that has been officially banned from flying.There are defects in its battery design, and it is easy to smolder, catch fire and explode.According to reports, this phone caught fire on the plane, and Samsung subsequently recalled this series of devices.In order to retain the loyal fans of Note 7, the company worked hard to update the software.
Samsung increases its marketing budget year by year.In 2017, the company surpassed P&G (Procter & Gamble) and became the world’s largest advertiser, with advertising expenditures reaching US$11.2 billion.
Ten years later, a new competitor Huawei appeared.With its incredible new camera technology and its popularity in Asia, Huawei successfully grabbed the limelight before Apple.
In 2019, Samsung is still the leader in the smartphone industry, accounting for 20% of the smartphone market.Huawei followed closely with 17% of sales, and Apple ranked third, accounting for 14% of global smartphone usage.
In 2020, with the launch of Apple’s iPhone 11 and Huawei’s 5G network, Samsung’s clamshell phones have problems, and the three companies’ position in the global smartphone market may fundamentally change.
The world is in your palm.Over the past decade, Samsung and Apple launched the iPhone and Galaxy S series, and the world has witnessed the mobile phone revolution.
Apple has a better starting point for inventing the entire smartphone category, but Samsung has not lost the opportunity to quickly join the wave of smartphones.Although Samsung’s Galaxy S series has never been as popular as the iPhone, the company has created multiple descendants that dominate the global smartphone market by 20%.
Although Apple’s sales have decreased, its product profit margins have been staggeringly high.Apple’s sales are significant, but Samsung has more customers, and the two are comparable.
In the past ten years, the Galaxy and iPhone are like Michelangelo and Leonardo, both genius competitors, let the world run in their own time.