Apple is scared because “consumers want what we don’t have”


The patent infringement lawsuit between Apple and Samsung, where Apple is claiming Samsung infringed upon five of its patents is revealing a lot of internal documents that show the inner workings of the two companies. While Apple will attempt to prove how Samsung “slavishly copied” Apple, lawyers representing Samsung would like to show how Samsung innovated and has become much bigger than Apple, which scares them.

While cross examining Apple’s senior vice president of worldwide marketing, Phil Schiller, Samsung showed a presentation from an offsite meeting held last year for planning Apple’s 2014 strategy, The Verge reports. The slides show how Apple has lost steam and is growing much slower than what it was growing earlier, dropping significantly faster in the first three quarters of 2013.

Apple mentions that competitors have grown fast and “have drastically improved their hardware and in some cases their ecosystems.” The slide also points out that some are spending “obscene” amounts of money on advertising and/or carrier/channel to gain traction, hinting at Samsung.

The slide also mentions that carriers are going to its rivals as Apple has subsidy premium, unfriendly policies and too high a share for their comfort. Users too want less expensive and larger screen smartphones, both of which Apple does not have. The presentation then mentions “consumers want what we don’t have” indicating the most growth in the smartphone industry came from devices that were cheaper than $300 and/or had a display bigger than 4-inches and Apple wasn’t present in either category.

By putting this presentation up, Samsung is making a point that Apple isn’t as innovative a company as it wants the world to think. On the contrary, it would want the jury to believe that Apple doesn’t even know the pulse of the market and it was Samsung that set the agenda with its bigger display Android smartphones across price segments that are proving to be a bigger hit with consumers.

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