Friday, November 15, 2013

Apple VS Samsung: iPhone Was “Bet The Company Product”

Apple and Samsung are sworn enemies in the smartphone market. This is no secret and neither of the two tech giants make any attempt to disguise the fact. However, it seems that Apple is doing its dead level best to wring every single cent it can from patent infringement settlements with Samsung. While many people may wonder why this is the case, Phil Schiller gave the answer during testimonies at the patent trial this week.

iPhone Was A Risky Bet
According to Phil Schiller, Apple’s marketing chief, the iPhone was a major risk to Apple when the company decided to release it. In fact, he labeled it as a “bet-the-company” product, indicating that if the iPhone had failed, Apple might not be where it is today.
According to CNet, Schiller told the jury that Apple took “huge risks” in making the iPhone. These risks were tied to the fact that Appl was “starting to do well again in iPod.” It would have made more sense to focus on devices that Apple already knew would sell, but then, that was not Apple’s way.
The risks increased because Apple was “going to invest…resources, financial as well as people, in creating this product.” The product was the iPhone, and it was wildly successful, as we all know. The bet was risky, but it definitely paid off in a big way for the Cupertino company.

Apple Cashes In
It is very easy to forget that Apple, although innovative, has not always been the world dominator that it is now. In fact, all through 2006, the company’s stock was trading at less than $100 per share. However, once the iPhone really began to capture attention, the stock skyrocketed, boosting Apple Inc. (NASDAQ:AAPL) to its current position. The stock has since traded at above $700 per share, and is currently trading at $526 and some change.

If you look at all of Apple’s products, the iPhone is its big money maker. Consumer demand for each new release is still high, and the revenue stream from it is larger than any other products, including iPod, iPad, and Mac computers. It’s no wonder that Apple is strenuously defending the patents surrounding the iPhone and requesting that the courts award the highest settlement possible. After all, Samsung is endangering Apple’s bread and butter.