Samsung Telecommunications America: Taking a Bite out of Apple

Category: Electronics
Brand/Client: Samsung Telecommunications America / Samsung
Lead Agencies: Razorfish, 72andSunny

State of the brand's business

Dear Judges…

Look around you. How many iPhones do you see? Odds are, they fill the room. This is what Samsung was up against while launching their newest flagship smartphone, the Galaxy S III, in the summer of 2012.

Apple's Advantage

Apple has dominated the smartphone market ever since it introduced the iPhone in 2007 and set the standard for competitors. Five years later, Apple had grown to a 29% unit share of the US smartphone market, having launched the top three smartphones of all time. This had translated into unprecedented customer loyalty: 84% of iPhone users said they would pick iPhone again when they replace their mobile phone. By contrast, only 60% of Android (the operating system on which the Galaxy S III ran) users would say the same. Brand preference metrics were just as depressing for Samsung, with Apple at 41% (vs. 12% for Samsung) and Apple's perception as a cutting-edge phone at 51% (vs. 8% for Samsung). To make matters even worse, the highly anticipated iPhone 5 would be arriving in the Fall, just four months after the launch of the Galaxy S III.