Samsung, the Biggest Competitor of Apple

First, Samsung, the biggest competitor of Apple released Galaxy Note 2 almost at the same as iPhone 5 (Samsung Official Website). I made a detailed comparison of Galaxy Note 2 and iPhone 5 (Figure 3), the consequence shows that Galaxy note 2 owns high technology, good design, and even beyond iPhone5 in some detail places. For example, under the same price condition, Galaxy Note 2's screen is bigger than iPhone 5 and it has longer Battery time. The length of battery time and visual enjoyment were more and more considered by consumers when they purchased smart phones. Galaxy Note 2 definitely gives consumers an alternative choice so that the sales of iPhone5 cannot meet market expectations.

Figure 3: Comparison of iPhone 5 and Galaxy Note 2

IPhone 5 Galaxy Note 2

Size 124*59*7.6mm 151*81*9.4mm

RAM 1GB 2GB

Weight 112g 180g

Storage 16GB/32GB/64GB 16GB/32GB/64GB

Camera 8MP Rear

1.2MP Front 8MP Rear

1.9MP Front

Wireless LTE, HSPA+ LTE,HSPA+

Battery 1,440Ah 3,100Ah

Starting Price ?4799 $3999

(IBTIMES, China)

Furthermore, the most important factor is technological problem. Many customers complain that iPhone 5 not only has the problem of paint peeling off, but also problems in cellular data, maps and camera have appeared (AppleCare, China). These effects has attracted the attention of AppleCare, they published a technical support documents to announce that the problem of camera is a normal technical phenomenon, and to guide the user how to avoid the purple phenomenon when taking pictures. The technical adviser of Apple claims that these problems will be solved gradually.

Target market:

Philip asserts that target market is a qualified available market which can affect pursue of the company (1998). For iPhone 5, its mainly focus on customers who use smart phones and fulfill customers visual enjoyment. Also, good segmentation can help buyer to make clear decision (Park, 2007). I will explain iPhone 5's current target markets through four major segmentations.

Geographic Segmentation

The