311: It’s Not Marketing, It’s Promoting

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Apple Marketing Commercial

Guy Hursh wrote and interesting article that discusses why Apple is commanding the share of profits, and the share of premium phone sales. He’s starts from the stance that both phones are functionally similar, and therefore it has to do with Apple’s better ability to promote themselves. In this show we dive deep into that claim.

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Marketing Show Notes

Samsung Lags Apple Not Because Of A Lack Of Tech Innovation, But Rather Marketing Innovation by Guy Hirsch, TechCrunch

The main question:

“Samsung’s competition with Apple is on premium phone ($400+) market share, and Apple is crushing Samsung in this market.

Other market share metrics don’t really matter all that much because of the simple fact that, according to Counterpoint , Apple dominated the global profit share of mobile phones, holding 65 percent of the global profits with just 9 percent (!!) of the total handset shipments during Q2 2017.  Counterpoint also reports that over the summer of 2016, Apple was selling just over 50 percent of the global premium smartphones, and Samsung was selling just under 25 percent. By December 2016, those numbers had grown to 70 percent and 17 percent, respectively.

Samsung spent an astonishing $10 billion on marketing in 2016, and while it doesn’t report how much of it was spent on marketing its premium phones, it was likely in the billions — and probably more than what Apple has spent globally.

So why is Samsung’s premium phone market share shrinking? Why do consumers with discretionary spending still prefer Apple in such large numbers?”

Angela Ahrednts And The New Apple Town Squares by Nicole Nguyen, BuzzFeed News