Sunday 4 December 2022
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HomeEconomyBusinessSamsung mocks Apple again for lagging in technology

Samsung mocks Apple again for lagging in technology

Samsung has once again mocked former mobile phone technology trendsetter Apple for the pace with which the latter adopts innovations. The focus of the latest taunt is the fact that Samsung now has four generations of Galaxy Z Fold and Galaxy Z Flip smartphones whereas Apple has maintained its candy bar form factor.

Apple recently started moving away from the market segment that it had entered in 2017. According to Ross Young of Display Supply Chain Consultants (DSCC), Apple will abandon the segment in its flagship smartphones from the iPhone 15 series onwards, which will arrive next year.

Samsung executives expect Apple to ‘wait’ until 2024 before it releases a foldable iPhone. Young discussed the state of Apple foldable phones in a recent interview with MacMagazine.

Why Apple cannot compete with Samsung in the foldable phone market segment

Young says that there are several reasons that explain why an Apple device with a foldable display is not out yet. Some issues are beyond Apple’s control, he says, such as supply chains only having enough capacity to produce ultra-thin glass (UTG) for Samsung products.

Further, Samsung Display dominates the foldable display market, a fact that prevents Apple from its preferred method of working with multiple suppliers, Young points out.

And while Samsung’s promotional lampoons Apple for being the only major smartphone manufacturer that has not released a foldable smartphone, it seems that the market is not yet ready to match the volumes in which Apple would want to sell a foldable iPhone.

Samsung mocks Apple again for lagging in technology [internal image]

A website that promotes Samsung products with airs of neutral business reportage, SamMobile says, “ insiders are of the view that Apple isn’t betting on foldables (sic) just yet due to the slim margins. Foldable panels are more expensive than conventional OLED panels and Apple would rather preserve its profit margins than compromise on them just to release a foldable phone.”

There have been many estimates about Apple’s profit margin on iPhones and while the figures vary, all of them are above 50%. In simple terms, this means that if it costs $ 10 to make an iPhone, Apple sells it for $ 15, the website says.

Profit margins are important for any company, but even more so for Apple, since it has historically kept high margins on its products. That’s also why you don’t normally see iPhones being discounted on Apple’s store.

Retailers can cut their own margins to sell discounted iPhones, but Apple doesn’t do that for direct-to-consumer sales. On the other hand, some of the best discounts on Galaxy devices can be found on Samsung.com. The Korean company tends to balance volume and margins. So, it’s always willing to provide the best deals directly, SamMobile says.

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