Melbourne Weather - Mostly cloudy
Now
Max
Melbourne, VIC
Mostly cloudy

Editor's Pick

Wheat woes: share the blame
MANY bear responsibility for potential loss of control over the wheat trade, writes Andrew Farran.
After two years, the North West Dairy Focus Farm project is drawing to a close.
Small dairy co-op doing big things
IN 2002, group of organic dairy farmers got together and formed one of Australia's newest, and perha...
TasFmr

Latest Comments

light grey arrow You may be right, gabriel: the planet "rebalancing itself in favour of plant...
light grey arrow Good idea. Part of the aid money should be used to build post entry...
FOL Mach House Ad
Win a Casterton Kelpie
YOU could win a Casterton Kelpie - the prize pup “Go Getta Law” is valued up to $3000. To enter, rea...
Stock & Land eReader
Download the new Stock & Land eReader!
Horse Deals May issue out now
Horses for sale plus hours of great reading.
 News  light grey arrow  Metro   light grey arrow  National  light grey arrow  General  light grey arrow  Store wars: Samsung, Apple gadgets at 10 paces 
CONVERSATIONS
Comments on this article
The land comments
0

Store wars: Samsung, Apple gadgets at 10 paces

Print
Increase Text Size
Decrease Text Size
23 Aug, 2012 09:55 AM

It's a flagship consumer electronics store on Sydney's George Street with smiling blue shirt-wearing sales staff, a minimalist design and smartphones and tablets that invite customers to pick up and play.

But according to Samsung, the new store - just a block from Apple's Sydney store - was all its own idea. The company, renowned as a "fast follower" of the market leader, is doing little to dispel the notion that it is an Apple copycat.

The store at 450 George Street opened at 8am today when Samsung also began selling its new tablet computer, the Galaxy Note 10.1. The 16GB WiFi version - which has a stylus for writing/drawing and can run dual apps in split screen mode - is priced at $589.

Great minds

Everything from the store layout to the sales staff to the products and even the packaging and promotional material is uncannily Apple-esque.

Samsung previously ambushed Apple's iPhone 4S launch by offering $2 smartphones in a temporary shop just metres away form the Apple George Street store, but now its presence is more permanent.

Samsung Australia's vice-president of telecommunications, Tyler McGee, said Apple "didn't even come into the equation when we were looking for a location [for the store]".

But come on, the layout of the store is pretty similar, right? "Well, if you look at our layout this is the layout that we use around the world and it's about basically giving the consumers the opportunity to interact, learn and play with our devices," McGee said.

Many aren't buying it - including Conan O'Brien, who recently mocked Samsung with a parody clip of a Samsung manager calling BS on Apple's charges of copying. The clip includes a send-up of Samsung's stores. Last month Samsung opened its first North American store in Vancouver, Canada.

Recipe for success

While other retailers struggle, Apple's 373 stores in 13 countries (including 14 stores in Australia) are booming, with global sales of $16 billion last year. The company sells more gear per unit area than any other retailer in the US.

Gary Allen, who runs a blog dedicated to Apple stores, ifoAppleStore, said Apple had proven it was critical for electronics companies to have a physical presence.

"It's not difficult to copy the general appearance of Apple's stores," he told Fairfax Media. "But I think Samsung will find it more difficult to copy the buzz or excitement that Apple's stores generate for its customers."

Legal battle

Samsung's stores will further inflame Apple's claims that it is competing with a copycat. The pair wrapped up their arguments in the US patent infringement battle this week, and are awaiting a jury verdict.

The case lifted the veil of secrecy at Apple, revealing a slew of iPad and iPhone prototypes and sensitive details regarding the process of designing its products (much of which occurs around a kitchen table, apparently).

But the case - and the fact that Samsung is now the market leader in consumer electronics - has also shone a spotlight on Samsung and the family-run conglomerate that owns it.

One memo relied on by Apple in its case shows Samsung's head of mobile communications, J. K. Shin, remarking that the iPhone caused a "crisis of design" at the company and demanding "let's make something like the iPhone".

Comparisons tendered in the case show a huge difference between Samsung's smartphone and tablet designs pre- and post-iPhone and iPad.

A separate 132-page Samsung document shows the company did an exhaustive feature-by-feature comparison of the iPhone and its original Galaxy S.

"Influential figures outside the company come across the iPhone, and they point out that 'Samsung is dozing off'. All this time we've been paying all our attention to Nokia, and concentrated our efforts on things like Folder, Bar, Slide," Shin wrote just after the iPhone's launch.

"Yet when our UX is compared to the unexpected competitor Apple's iPhone, the difference is truly that of Heaven and Earth. It's a crisis of design."

He adds: "When you compare the 2007 version of the iPhone with our current Omnia, can you honestly say the Omnia is better?"

Samsung said the memo was "routine" and "typical competitive analysis", despite fighting tooth and nail to have it excluded from the case. It argues Apple is trying to use the courts to stifle its biggest competitor.

Much has changed since 2007 and Samsung is now the global market leader in smartphones, with its Galaxy S III selling more than 10 million units so far.

Corruption allegations

A recent feature article by The Kernel - titled "Samsung: Power, Corruption and Lies" - took a detailed look at corruption allegations against top Samsung executives, which are rarely aired in Western media. Its current chairman, Lee Kun-Hee, had his house raided by South Korean police in 2008 following claims the company was maintaining a slush fund to bribe court officials and politicians.

Prosecutors requested a seven-year prison sentence and a $US347 million fine but Lee was sentenced to a three years suspended sentence and a $US109 million fine - and was pardoned by the South Korean government in 2009. He returned as Samsung's chairman - but internal issues remain as the Lee family is fighting in court over ownership of the company.

McGee would not comment on the court case against Apple or on how Samsung is dealing with the increased scrutiny of its practices in Korea.

Page:
1


Cropping

FARMERS currently harvesting sorghum crops across southern Queensland and the Liverpool Plains are pleased with the way prices for the feed grain are holding up.
FARMERS currently harvesting sorghum crops across southern Queensland and the Liverpool Plains are pleased...
TRADERS in the grain market remain focused on the North American corn crop, which is in the last few weeks of its planting season.
TRADERS in the grain market remain focused on the North American corn crop, which is in the last few weeks...
THE ISSUE of optimum sowing dates is something that is intensely scrutinised among the farming sector.
THE ISSUE of optimum sowing dates is something that is intensely scrutinised among the farming sector.

Machinery

PARKLANDS have released a new wood chipper just in time for the colder months.
PARKLANDS have released a new wood chipper just in time for the colder months.
AGCO Australia has merged with the GSI Group - a global supplier of grain storage, material handling, conditioning and drying solutions.

Wool

THE Eastern Market Indicator (EMI) has jumped 30 cents this week, pushing above 1000c a kilogram for the first time in four weeks.
THE Eastern Market Indicator (EMI) has jumped 30 cents this week, pushing above 1000c a kilogram for the...
THE wool market kicked 26 cents a kilogram last week and industry experts are tipping this upward trend could continue.
THE wool market kicked 26 cents a kilogram last week and industry experts are tipping this upward trend...

Livestock

CHARTERS Towers combined agents yarded a total of 542 cattle at the weekly store and prime sale held on May 22.
And at the Roma Store Sale held on May 21 a total of 8500 head of cattle were penned.
CHARTERS Towers combined agents yarded a total of 542 cattle at the weekly store and prime sale held on...
The RFID debate for sheep and goats has heated up with livestock authorities in NSW endorsing the current mob-based traceability system claiming the scheme meets national tracing standards.
The RFID debate for sheep and goats has heated up with livestock authorities in NSW endorsing the current...
LANDMARK Chinchilla auctioneer Terry Ryan said early selling at today's Dalby cattle sale indicates a rise in the market.
LANDMARK Chinchilla auctioneer Terry Ryan said early selling at today's Dalby cattle sale indicates a rise...light grey video

Agribusiness

BILLIONAIRE Warren Buffett is not waiting around to see how ADM's ambitious GrainCorp bid will work out - he has quit his ADM shareholding for about $US207m.
FARMERS say US corporate raider Archer Daniels Midland (ADM) is clearly uncomfortable with calls to have port operators free up their exporter access rules at Australia's seaboard grain terminals.
FARMERS say US corporate raider Archer Daniels Midland (ADM) is clearly uncomfortable with calls to have...

Horticulture

Fruit Growers Tasmania will host over 200 delegates at their annual May conference which starts in Hobart later this week.
INDUSTRY will have to pay for increased roadblocks entering South Australia in response to a heightened risk of fruit fly infestation, according to Agriculture Minister Gail Gago.
INDUSTRY will have to pay for increased roadblocks entering South Australia in response to a heightened...
 SEND...
 SAVE...
 SHARE...