Samsung’s success journey! R & D Expenses: $8.7 Bn for 2011, 10.6 Bn for 2012, $2.97 Bn for 2013 (1st qtr)

Success is based on approach. Not by looking at what competitor does but by setting up own standards & blueprints.

Google’s innovation of android OS in 2009 gave biggest hit to Samsung who could understand future of technology with launch of Galaxy devices & didn’t hesitate investing $8.7bn in 2011 just for R & D by employing 53,000 minds. Best example of blueprint, R & D, Customer centric approach, CSR. Already messed up Nokia, Sony, Motorola & LG.Now its now time to say Blackberry a fruit. Hope Apple survives…!

Its surprising but fact that android covers 75% of smartphone market by the end of 2012. None of symbian and java based application could provide such experience which Android has given. Its Linux based operating system. Begun with Gingerbread 2.3 version today it has Jelly bean 4.2 which is more user friendly and provides ultimate smartphone experience to user.

Success of Samsung’s galaxy is backed up by android OS. Also continuous technological innovation like start stay, smart pause, auto sensor, air gesture, smart scroll, screen mirroring, S beam, drama shots, dual camera shot, S translate, multiwindow. Understanding customer preferences, changing habits and expectations deriving from a smartphone. Keeping required interval while announcing launch, proper product, promotion, R & D, positioning, pricing resulted in boom and galaxy turned this into a history. Not only record volumes but profit also surged to $6.5 Bn in the first qtr of 2013.

What made Samsung so succeed in a very short spam of time? Was it just R & D or android? Well… I’d say R & D which includes everything beginning from competitor analysis, market, technological innovations, customer demands, changing need, etc. Well these figures are shocking when appears in front of us. Samsung alone invested $8.7 Bn in 2011, $10.6 in 2012 and $2.97 Bn for the 1st qtr of 2013. For the same qtr apple invested $1.12 Bn which is almost 3 times lesser than samsung. Even now Apple is able to maintain second position in smartphone market but dropped to 17% compared to 23% a year earlier.

A quote saying "life was good when blackberry, apple were just fruits. Guys soon you gonna enjoy blackberry as fruit as company is more concern keeping heart alive without body. Recent announcement by blackberry official says that BBM will be available for Iphone and Android users. Just because most of us use Whatsapp, viber, skype to exchange messages rather than pinging on BBM. Nope, we never found BBM as much friendly as Whatsapp. So now what’s the use of hi- fi and costly Blackberry devices. An announcement killed hope for BB-10 OS & upcoming models.

If series of product launch attracts the customer then it could have been Sony Xperia which would have enjoyed millions of customers. With regular unplanned launch of Xperia models they still expect customer to rush. Frankly speaking I don’t think that a sales man selling Xperia would be able to answer which model of Xperia has what functions. Xperia X10, Xperia X8, Xperia arc, Xperia Play Play, Xperia neo, Xperia active, Xperia arc S, Xperia ray, Xperia mini, Xperia pro, Xperia neo V, Xperia U, Xperia P, Xperia S, Xperia sola, Xperia HSPA, Xperia go, Xperia neo L, Xperia ion LTE, Xperia tipo dual, Xperia SL, Xperia tipo, Xperia acro S, Xperia J, Xperia T, Xperia TX, Xperia miro, Xperia ZL, Xperia Z, Xperia E dual, Xperia V, Xperia E and coming launches Xperia ZR, Xperia L, Xperia SP, Xperia Xperia, Xperia…. Enough? Uff really its better to choose an alphabetic series beginning from Xperia A,B,C & so on. Rather than putting illogical & confusing model no.

After huge failure of symbian, Nokia still follows same sequence of launching and positioning products. Their Asha as well as Lumia models have same positioning as Sony’s Xperia. Asha 200, Asha 300, Asha 302, Asha 311, Asha 303, Asha 201, Asha 202, Asha 309, Asha 308, Asha 305, Asha 205 dual, Asha 310, Asha 306 and coming launches Asha 210 dual and Asha 501 dual.

I wish a car could have passed by me so that I could try to remember such numbers. Let’s see Lumia 610, Lumia 710, Lumia 800, Lumia 900, Lumia 510, Lumia 920, Lumia 820, Lumia 620, Lumia 520, Lumia 720 and coming launch of Lumia 925. Some of Lumia models have got popularity due to their features & acceptance by the customers.

Back in 2011 it was HTC who was leading but after Samsung launches in 2011 and 2012 HTC smartphone market shrank by 36%. is able to maintain its fair position. HTC spend on marketing was not enough and it was got pushed by carriers like AT&T and T-mobile. HTC financial for 2012 reported 70% drop in profit. Tag line for HTC used to be Quietly Brilliant seems to be like Quietly In trouble.

Even Nokia posted net loss of €1.48 Bn in 2011 which widened to €3.78 Bn by the end of 2012. Sony has flooded lots of Xperia models in the market and could achieve $458 million profit in fiscal 2012-13.
This time commenting on LG, Motorola would be like asking, 80 years old man to participate and win a 100 meter race. Yeah! Now, there is Panasonic in this race with its very first launch of P51 smartphone, today. Aiming 8% market share by end of 2013? 8% would be a nice dream for Panasonic when Apple, a 3 decades old company and world’s second smartphone maker is striving to maintain 17% of its market globally. Let’s see its price, produce and positioning matters.

Even in this scenario some companies will determine Galaxy S4 and Apple’s Iphone 5 as competing factor where as these both giants are on their way to continuous R&D. Finally only OS left on board. IOS associated with Apple, Android with Galaxy + other rivals. Still would be a great watching, what a mobile can do…


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s