Who will be the platform of the future: Samsung vs Google
We live in a world of ecosystems, says Patel, where individual companies are trying to establish control over all of our lives. These three companies: Apple, Google and Samsung.
Apple is out — Patel says that Apple products are and will be expensive, exclusive and associated exclusively with each other. But Samsung and Google are wider. Everyone wants to outdo each other, each tends to concentrate in their hands as much as possible technologies.
for Example, reminds Nilai, Samsung for $200 million bought the company SmartThings, which manufactures products for the «smart home». Such a step has recently done, and Google bought the company Nest. The voltage between companies is growing, so who will win?
the Magic of the big screen
Patel puts forward his theory about the success of Samsung. According to him, the power of Samsung phones, no TV and not in the refrigerator. The power of Samsung’s factories producing large and cheap screens.
so Samsung in time overcame Sony: as soon as buyers EN masse wanted to watch TV in HD, Samsung «advance» and released the biggest LCD TV for a very low price. Buyers were not comparisons — they just wanted to hang a flat screen TV on the wall. As soon as buyers ‘ preferences about the size of the screen has changed, Samsung immediately rebuilt production, quickly produced what you need, and actively invested in marketing.
This strategy proved to be deadly for Sony. The situation was saved by even a joint venture that manufactures LCD TVs. In 2011 Sony Samsung sold its stake for a billion dollars and still trying to recover.
The same thing, according to Patel, is repeated with phones: Samsung has produced a huge number of screens. As soon as buyers began to lean more toward larger screens, Samsung immediately made a giant OLED displays mediocre and sent the profits on marketing. Pace Samsung no one was ready, and the company was the only competitor in the mobile industry — Apple.
the Problem is that Samsung always need someone — for example, Netflix or Google Play, -to these the big screen was something to watch. Samsung has equipped them and refrigerators, if someone took care of that for them, something appeared. But today the advantages of a large screen fade into the background — and the rapid growth of Samsung slowed.
According to Patel, Samsung will be difficult to come up with something special, besides the big screens. Yes, she sometimes buys interesting companies like Boxee or SmartThings, but never brings to mind their potential — just because you can make money more easy ways.
Patel says that Samsung will not be able to make its platform. Google specializes in processing information, and this is its advantage. Samsung develops software to sell big screens. Google is developing software to rule the world.
David Pearce in response to claims that Samsung is everywhere. It builds ships, engaged in life insurance, owns an amusement Park, and two of the top 50 construction companies (and she makes smartphones).
According to the Pier, you can take at random any company from the list of the top 500 Fortune — Samsung, most likely, it competes. And most likely wins. Yes, Google — a powerful brand, the second in the world. Samsung only in eighth place. But the power of Samsung is not in the brand and not the fans, but the fact that Samsung has penetrated all spheres of business.
in Addition, Samsung itself provides: from plants to clothes which put workers at these factories. Samsung sufficient scale, infrastructure and budget to make and sell anything. That’s why Samsung buys companies such as SmartThings.
Maybe Samsung does not acquire startups for such crazy money, like Facebook, and it has not such a cool office, like Google. Instead, Samsung has a huge engineering capabilities, deep connections within the industry and the ability to improve and produce products with the speed of light.
According to the Pier, the Galaxy line of smartphones — the best that has happened with Samsung. And although in theory the Samsung victory — this is a victory for Google, but now Google needs Samsung more than Samsung in Google. It has its own platform, its services, its software. Samsung doesn’t depend on anyone. Tomorrow Android will disappear — Samsung immediately switch to Tizen. and pier doubt that buyers will notice the difference.
If the company will continue to develop the ecosystem in which Samsung products compatible with anything but the best with other Samsung products, the company will become even more powerful.
Google and Samsung are strong together, concludes pier. However without Samsung’s idea of Google to be in the pocket and on the wrist of the user will die on the vine. Conversely, without Google Samsung just take another course and will swim fastest. As it has done before.
article Summary: Journalists Nilai Patel and David Pearce argued in the pages of The Verge about who is stronger — Google or Samsung. The CPU provides a brief overview of their discussions. samsung