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Business 599 week 10 Apple and Samsung Cpstone Asignment(USE AS GUIDE ONLY)
Apple and Samsung Capstone Assignment
Business 599 Strategic Management
The global smart phone industry is one of the strongest and fastest growing industries today.
There is no sign of it softening anytime soon. The expanding growth and demand for
smartphones globally is emerging as developing countries come on line. Cell phones have gone
through major changes since their introduction in 1994. Companies like Apple, Samsung, and
many others, are engaged in a never-ending competition to see who will be the most innovative
and popular with customers around the world, in various markets and cultural settings. These
productsare constantly evolving to meet customer expectations.
Volume sales of smartphones reached 97.7 million handsets in the US for 2012, with
volume sales increasing by 26%. The smartphone has emerged as a vital tool for personal and
business communications, quickly replacing basic feature phones as an essential purchase for the
majority of US consumers. 2012 saw the advent of low cost, affordable smartphones as the
ownership of handsets based on the Android operating system expanded rapidly.
Apple remained the leading player in smartphones in the US in 2012 with a 34% retail
volume share. The company’s iPhone brand was rejuvenated with the launch of the iPhone 5 in
September 2012 and the iPhone 5S in September 2013. The iPhone remains the single most
desirable smartphone band available in the US and this is the basis for Apple’s status as the
leading company in the category.
Apple is able to command high unit prices for its consumers, even after wireless
subsidies. Having recorded staggering growth over the course of the previous decade, the rapidly
maturing category of mobile phones in the US is set to achieve maturity at some point in the next
Growth rates in mobile phones overall are expected to remain very low, with new
launches and short two-year replacement cycles the most likely drivers of new acquisitions
among the vast majority of US consumers who are existing mobile phone consumers. This all
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