GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

This Is Why Apple Needs to Be More Careful

March 02, 2014 | About:
Rahul Chattaraj

Rahul Chattaraj

1 followers

Knowledge is power and competitors empowered with the knowledge of your business strategies can be a deadly thing. This is why knowledge should be protected and secrets should be kept. Everyone knowing everything can’t be good. Need an example on this thought? Take a look at Apple (AAPL) and Samsung (SSNLF).

The Apple-Samsung Equation

How I see it is Apple is the innovator and Samsung is the follower. It is said that imitation is the highest level of flattery. On that note, Samsung can be called the biggest fan boy of Apple. Apple works on something new and fantastic and brings it to the market and cleaver Samsung quickly takes a note of it and gets its own gadgets with similar features out in the market. We have seen this happening for touch-enabled smartphone concept, smartphone design, S-Voice, the rumored S-Health, rumored finger print sensors. So whatever is available in an iPhone now, will also be available in a Samsung phone, but in another few months, and that also at a cheaper rate.

The Current Blow

The iPhone maker has suffered some blows in the past and is very likely to go through the same unless it is able to better protect the gadgets in its pipeline. This time the blow is on the much awaited iWatch concept. The thought to capitalize on the iWatch might turn out to be a little harder as Samsung continues to add more features to its smartwatch offering. It’s not been six months also since the Korean giant came out with its first smartwatch offering, and the company has added another 3 smartwatches to its portfolio.

At Mobile World Congress in Barcelona, the Galaxy maker unveiled Samsung Gear 2, Gear 2 Neo and Gear Fit that can prove to be fatal for Apple’s dream of the iWatch. The Gear 2 comes equipped with a built-in camera, not present in the Gear 2 neo, and can wirelessly connect to smartphones, while the Gear Fit will come with a curved screen and focus primarily on health apps. And its not just Samsung that has plans for a smartwatch. Even Google (GOOG) owned Motorola and LG are planning on coming out with their version of the gadget.

Apple Has What It Takes to Come Out as the Winner

However, the point to note here is, introducing the right product at the right time can create all the difference. Though Samsung was able to materialize the smartwatch concept before Apple, it did not get much of a first mover’s advantage as the gadget got very cold reception. May be Samsung hurried in a little and should have waited for the market to develop and be able to appreciate the device. According to a recent research, the smartwatch market is expected to stay more or less constant at below $20 billion per annum till 2015. Post 2015, the market can be expected to grow. May be this is what Apple had realized and decided to go slow.

Departing Thoughts

Apple has always been able to understand the pulse of the market. The iPhone maker is working on a right combination of features to provide the perfect package at the right time. We have seen this happen earlier also. Before the iPhone, Nokia’s Symbian phones were considered to be the benchmark. But, Apple revolutionized the idea of a smartphone completely. The same happened with the iPod. Before Apple came out with its offering, there were many music players in the market. But the iPod changed the way people listen to their music. Some have it in them, some don’t and Apple definitely belongs to the fortunate ones. Nevertheless, the company needs to be able to protect its secrets better. May be someday it will run out of its luck or the i-factor that keep s it moving ahead of others.


Rating: 3.0/5 (7 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide