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Scoble on Apple-Samsung: “this is actually a sizable win for Samsung”


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❝ I think this is actually a sizable win for Samsung. Why? It only cost $1 billion to become the #2 most profitable mobile company. Remember how much Microsoft paid for Skype? $8 billion. So, for 1/8th of a Skype Samsung took RIM’s place and kicked HTC’s behind. ❞

While it's nice pat on the back, I'm not excited by the verdict...

First of all, I disagree that Samsung bought their way to #2. They were doing close to awesome products for a while now. Again, they were not awesome, but they were trying...

Yes, Apple revolutionized the industry and set the standard on how cell phones are to be done. There is no doubt it's not good for consumers, but it also not good for Apple itself for few of purely business reasons:

1. International consumer education.

In many countries, Samsung got it's way to consumers, while Apple, still, either not available on the market of extremely expensive. With halfway copies of iPhone, Samsung creates initial population of consumers, who will be prepared to pay for the smart phones. Once iPhone will come, many will be ready to "come to papa".

2. They need competition to stay innovative.

Right now, Apple is unmatched in quality of products. The only way for them to keep staying awesome is to look inside themselves for innovation. With Steve Jobs gone, it will be harder and harder to do. Giving Samsung their initial jump, will allow them to grow healthy competition and borrow ideas (and people) from them as well.

3. What to do with cash...

They already have 100bln in cash. They are getting 1bln more. This is pretty contrarian to "stay hungry"... It will be harder for them to stay laser focused on very few products. The might fall on the path of Microsoft, IBM, etc and start doing everything.

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