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What's Behind Samsung's Dominance of Android?

The following video is from Friday's installment of the Motley Fool's Weekly Tech Review, in which host Chris Hill and analysts Eric Bleeker and Jason Moser look at the biggest stories driving the tech sector this week.

The CEO of the mobile division of Huawei, a competitor to Samsung, has come out and said that Samsung's enormous advertising spending is the defining reason it's so successful at the moment. A recent study from Ad Age showed that Samsung increased its marketing budget in the U.S. last year to $881 million, a 58% increase from the year before. Not only that, but Samsung's "sales promotion" expenses to carriers are actually higher than its spend on advertising on television and online. Which is all to say, Samsung's marketing efforts extend deeper than its many advertisements on television. 

In this segment, Jason and Eric discuss the difference between a company that does need to spend huge amounts on advertising versus a company that doesn't, what other avenues of Samsung's spending have also been contributing to its success, and why Samsung's giant marketing budget has ultimately been a big win.

The full video is available here.

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The relevant video segment can be found between 10:02 and 15:09.

Read/Post Comments (3) | Recommend This Article (2)

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  • Report this Comment On June 30, 2013, at 1:26 PM, radio3 wrote:

    The key is that they were able to simultaneously capitalize on the strength of Apple and the strength of being someone who is Not Apple.

    Apple consistently offers a superior user experience and astonishing ability to succeed while taking bigger risks/greater innovation than their competition. Samsung was able to negate this advantage by essentially making clones of Apple devices -- the most similar-to-Apple-product devices of anyone else.

    At the same time, they have marketed themselves as David vs Apple. Despite making devices more similar to Apple products than anyone else, they have marketed themselves as hip alternatives to Apple. So they have capitalized on peoples's resentment of Apple's success. This is an especially effective tactic in markets that resent USA's position as an uncontested superpower.

    They essentially have their cake and eat it too.

  • Report this Comment On June 30, 2013, at 1:52 PM, VegasSmitty wrote:

    Better product at a lower price with more features...The Apple fad is so over!

  • Report this Comment On June 30, 2013, at 5:12 PM, twolf2919 wrote:

    @VegasSmitty: a fad is defined as a short-lived obsession or craze. The key words here are "short lived". Apple's been - well, Apple - for 30 years now. If that's a "fad" to you, you must have a lifespan greater than us mere mortals.

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