Samsung has set its Galaxy S4 on for sale and is expected to register some hefty sales figures. With more and more online discussions done on S4, the cliché of Apple’s death has also become overused. Agreed, Samsung is selling more phones than Apple but the idea of Apple dying seems to be amateurish. The fact that software content/apps are the heart of the Smartphone makes it absolutely clear as to why Apple still generates more revenue than the leading OEMs.
The revolution of backward integration
We all know that apps and touch screen were already there but were not good enough. Steve Jobs integrated them in a beautiful package called iPhone. But the most important thing which he realized was to control or have curation rights over the content created for the iPhone. This way, the iTunes not only controls quality of the apps submitted by any iPhone app developer, but it also ensures that the users get the best apps without any malware. Apple claims 30% of the total revenue generated from an app and the rest goes to the iPhone app developer. It won’t be irrational to say that the Apple app store is the golden egg laying hen for the company. Steve Jobs cemented the App store with the iOS ecosystem and promised good revenues for Apple, iPhone app developers and quality for Apple users.
It is not easy for Samsung to do the same. The S4 seems to be inclining itself towards its own ecosystem. But its dependability on Android cannot be sidelined. Samsung may sell a large number of S4 again in this year. But to match the profitability of Apple, it needs to provide services.
The revolution of backward integration
We all know that apps and touch screen were already there but were not good enough. Steve Jobs integrated them in a beautiful package called iPhone. But the most important thing which he realized was to control or have curation rights over the content created for the iPhone. This way, the iTunes not only controls quality of the apps submitted by any iPhone app developer, but it also ensures that the users get the best apps without any malware. Apple claims 30% of the total revenue generated from an app and the rest goes to the iPhone app developer. It won’t be irrational to say that the Apple app store is the golden egg laying hen for the company. Steve Jobs cemented the App store with the iOS ecosystem and promised good revenues for Apple, iPhone app developers and quality for Apple users.
It is not easy for Samsung to do the same. The S4 seems to be inclining itself towards its own ecosystem. But its dependability on Android cannot be sidelined. Samsung may sell a large number of S4 again in this year. But to match the profitability of Apple, it needs to provide services.
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