Tuesday, April 19, 2011

Apple, Samsung Clash Could Force More Innovation At Samsung

Apple and Samsung are now engaged in a high stakes legal battle over Apple's charge that Samsung copied it's design approach in phones and tablets. Imitation, as they say, is the sincerest form of flattery.

But this has to fall into the category of "Be Careful What You Wish For".  Samsung has traditionally been a fast follower in business - moving into spaces with standardized products at lower prices once the market has been proven - push down cost and driving up quality and volume.  This has worked well for the company and, if anything, the success of this strategy has probably slowed down investments in more innovative, original approaches.

That could all change now.  Apple is telling Samsung, in a way, that it must choose between the fast-follower business in consumer devices and the roughly $6 billion in annual component sales to Apple.  If Samsung chooses to back off on the fast follower business model, that might not mean a smaller Samsung.  It might mean a much more innovative one willing to take bigger risks.

Apple might like that Samsung even less.

Samsung at CES.  Photo from Joanna

No comments:

Post a Comment