Apple is now the most valuable company in the world with market cap of over $621.64 billion and it’s facing an intense competition from Samsung in smartphone segment. Apple’s latest patent victory has forced Samsung to pull out its numbers of flagship products from the U.S. market. Recently, I explained how Apple could sale more than 250 million units of iPhone 5 in future. Indiscriminately, sales figures of the world leading company (in terms of market valuation) are very impressive and of course, the highest profit margin on the products (in mobile segment) has made the company into such influential status.
Apple is quite aggressive towards its business and that’s why it has planned to launch eight new products later this year. It’s the first time when Apple experimented with screen of its Tablet and smartphones. The company is going to launch 7-inch “iPad Mini” and iPhone 5 (with larger screen compare to original iPhone) this year.
The company is also bullish towards its patent portfolio (has carefully assembled all patents). I agree on the company’s sincerity with intellectual property, but excess of anything isn’t be treated as ethical. The company has pulled number of rivals into the court for infringing its patents around the world. At present, Apple has adopted a strategy to stalemate the sales of high-end products for some periods, but this time, it has succeeded to injunction Samsung’s flagship products in the U.S. for uncertain period of time. Apple’s strategy has fueled a patent war in mobile segment that has beleaguered number of tech-companies.
For the growth of any industry, there is a need of common understanding between vendors. Indeed, it’s really very tough to improve and build upon the popular products and services without using the basic concepts (involved in product development). There are lots of products such as ‘universal search’ and more that already existed before Apple’s patent grant. Likewise, the concept of ‘slide to unlock smartphone or Tablet’ with touch screen was discovered earlier before Apple’s patent.
It’s astounding me a lot that Apple has recently been granted for a patent related to the iPhone’s graphical user interface for displaying electronics list and documents. At present, almost all smartphones are using the same method of user interface, but it’s now of Apple.
I think, many of software patents should never have been granted, the reason is quite obvious that these were developed using earlier developments. At present, Apple has crossed all limits; have you ever imagined that Apple can claim for design? It’s the first time in the history that any tech company has litigated for design. If I suppose, Samsung’s specific models resemble with Apple’s iPhone and iPad’s design, then how could these product effect to the Apple’s profit? Apple has impressive shipments due to consumers believe. They purchase the product because they think it’s innovative. They purchase the product due to Apple logo. If Apple’s management believe that they make innovative products, then it should leave all these things on consumers sides.
Apple is leveraging over its patent lineups to block the sales of competitors’ product in the market, so that it could make even more money. The company has always advocated for innovation, but one way, it’s trying to bar entrants to sell their products in the market. It’s true that even Apple is not come with new idea and design in the vacuum.
It’s hard to believe that Apple isn’t a manufacturing company; even it does not assemble its products. All Apple’s devices (from components to device assembling) are being manufactured by others; Apple just sells the device. It’s also hard to believe that Samsung is largest component supplier of Apple, despite of this, Apple compelled Samsung to not sell its flagship models around the world. Apple spends a huge on marketing than Research and development, on the other side, Google, Samsung and Microsoft all spend more on their R&D than Apple.
Apple just wants to create a hoard of cash around and there’s nothing unusual about its allurement business. If Apple’s stereotype behavior continues in the future, then it will jeopardize to innovation. Consumers will have limited option and they will be forced to pay more for the device.
Apple is selling overpriced device in the market. Undoubtedly, Apple’s products are not for price-sensitive users. It’s true, whether you believe or not, no company can stay at top forever. Once upon a time, Nokia was a leading mobile handsets manufacturer, but it’s now struggling to regain its market share.