Samsung Advert That Pokes Fun at iPhone 5 Gets 17 Million Hits in YouTube
By Vittorio Hernandez | January 29, 2013 9:46 AM EST
There are different theories why Apple continues to weaken while Samsung zooms past its main rival but once business partners. Some experts explained it to Samsung's engineering marvel and marketing expertise.
The Wall Street Journal believes this 2011 marketing campaign that Samsung rolled out lampooning Apple could be contributory to the continuous strong performance of the South Korean tech giant versus the American firm's slowdown since the death of founder Steve Jobs. Just last week, Apple lost its 12-month hold as the most valuable company in the world.
This is the ad for Samsung Galaxy S III titled The Next Big Thing, which has so far 17,362,105 views in YouTube.
Concern over Apple's slowing growth caused the biggest loss in Apple's shareprices in the Standard & Poor's 500 Index as the shareprice of the manufacturer of iPhone's plummeted 18 per cent in 2013. This reduced Apple's market capitalisation to $412 billion, lower than Exxon Mobil's $417 billion.
Reckoned from September, Apple shares have tumbled down 37 per cent over concerns of increasing costs and more competition from rival, mainly Samsung.
On the same day that Apple moved down to second spot, Samsung - which has become the market leader in smartphone sales - reported a 76 per cent boost in its fourth-quarter profit on the strength of its Galaxy S line.
The higher sales enjoyed by Samsung is because of comparable specs with iPhones in design and technical features, but significantly lower price tags.
The Samsung ad, created by former Nike executive Todd Pendleton, the current marketing manager of Samsung for the U.S. market, convinced a number of iPhone fans to buy a Samsung Galaxy S III.
In 2012, the South Korean tech giant held 28 per cent of the global smartphone market, up from 20 per cent in 2011 while Apple's shares slightly inched up to 20.5 per cent from 19 per cent for the same period.
Apple, in justifying its pricier units, said the tech giant is not willing to cut corners to deliver the best customer experience in the world.
As a result of the growing popularity of Samsung smartphones, many app markers that used to concentrate on developing apps for Apple's iOS now shifted their attention on units that run on Android OS.
However, some analysts believe the seesaw between Exxon and Apple for the number one spot will continue. Over the next 12 months, the analysts forecast Apple shares to rise to $627.79 which would boost market value to $589.5 billion, while they predict an average shareprice for Exxon of $95.17 which would place the oil giant's market value at $434 billion.
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