Samsung is the dominant producer in the smartphone market today. Apple is falling behind.
Which market is the market of the future? The USA or Asia?
I knew this would happen. I said so in 2011. Samsung uses the Android operating system. Android is the future, not Apple. Open source beats proprietary. Free beats royalties. Price competition beats customer loyalty. Why? More customers.
Apple’s strategy is to capitalize on its patented operating system. Customers care about price and performance, not patents.
Apple stifles innovation with its patents. Android says: “Come one. Come all. May the best products win.” Result:
“Samsung is also making profits from its Android smartphone sales, and captured a 95 percent share of all Android smartphone profits in the first quarter, research firm Strategy Analytics said earlier this month. Global Android smartphone profits reached US$5 billion in total during the first quarter of 2013, and accounted for 43 percent share of the entire smartphone industry’s operating profits.”
Apple is suing Samsung for patent infringement. It is relying on a judge to save its market share. By the time a judge decides, Android developers will be on to the next design, the next innovative product.
Apple’s stock is down 36% from its high. It will fall even more. It is fighting a rear-guard action with its strategy of patent protection.
Apple will still produce good products, as I said in 2011. It just won’t produce the best products.
Entrepreneurship favors customer satisfaction. It favors innovation. The free market rewards successful innovation, not restricted innovation.
Apple has made a challenge: “Our lawyers can beat any guy in the room.” There are too many guys in the room. The room is the whole world. The courtroom that counts is this room: the courtroom of customer opinion.
As for me, I don’t own a smart phone. I own a long-obsolete AT&T cell phone. It works just fine. It’s a lot smarter than I am, digitally speaking. But among smart buyers of smartphones, Android is the future, not Apple. The judges who matter are customers around the world, not some robed judge in northern California.