Samsung is best known as a brand that sells phones like the Galaxy S8. But its most profitable division sells parts, like screens and memory chips, to companies including Apple.
In fact, Samsung is reported to be the only supplier of the new next-generation OLED screen expected to be a key selling point of the iPhone 8.–Kif Leswing
This could just be coincidence, but it seems that Samsung’s marketing has been getting less and less confrontational with the iPhone. In the early days, their ads were openly mocking the iPhone or its purchasers with in-your-face ridicule. Lately it’s shifted to more of a subtle jab. It’s almost as if Samsung came to the realization that the iPhone was good for Samsung and they’re happy with a bipolar mobile world. Samsung wins either way.
In fact, with competition coming at Samsung from all sides, the iPhone may be more important than ever. If they lose Galaxy sales to low-priced Chinese phones, this could hurt them in a couple of ways. First, low-priced phones are going to use lower margin components. The iPhone is famous for having customers willing to pay high prices for the best experience. Second, Chinese handsets may utilize more homegrown components, cutting Samsung out entirely.
This also highlights the importance of companies having some kind of subsidizing cash cow. Companies like Samsung with their components or HP with their printers can afford to take risks in other areas. Companies without an underlying base of revenue that attack an intensely competitive market find themselves in a high-risk proposition. Gateway Computers, HTC, and Tesla have all done this and have either died, are dying, or going to die.
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