How Apple Is Seriously Worried Over Samsung's Success And 'Holy War' With Google
Apple executives are deeply concerned about the threat posed by competitors in the smartphone market, private company documents reveal.
By Sadho Ram — 06 Apr 2014, 02:38 PM — Updated over 10 years ago
Documents from 2013 reveal Apple officials had serious concerns about the iPhone's competitive position against the growing popularity of Android smartphones
Philip Schiller, senior vice president of worldwide marketing at Apple Inc., center, exits the Robert Peckham United States Federal Court Building in San Jose on Tuesday, April 1, 2014
Image via bloomberg.comShown during a cross-examination of Phil Schiller, a 2013 email from Apple's senior vice-president, presented Friday in federal court for the Apple versus Samsung patent trial, suggests he was seriously concerned about how the consumer market perceived the iPhone, as compared with Samsung's line of smartphones.
cnet.comThe email was sent to Apple's ad agency Media Arts Laboratories, and said:
"I watched the Samsung pre-superbowl ad that launched today… It's pretty good and I can’t help but thinking 'these guys are feeling it (like an athlete that can't miss because they are in a zone), while we struggle to nail a compelling brief on iPhone."
recode.net
"Something drastic has to change. Fast," Schiller wrote in a portion of the email obtained by CNET.
cnet.comThis is one of a few instances in which Apple's concern about its competitors has been revealed in such detail. Here, watch the ad that is being discussed in the email:
The document noted that all the growth in smartphones was coming either from large-screen devices with the segment that included the iPhone showing decline
Other internal Apple documents presented during Samsung's cross-examination of Schiller indicate that Apple's view of the market at the time saw growth in larger-screen smartphones (or phablets) priced above $300, as well as devices priced below the $300 mark.
recode.net
Some other concerns noted in the document included the idea that Android rivals were “spending ‘obscene’ amounts of money on advertising and/or carrier channel to gain traction” and that mobile carriers had an interest in limiting iPhone sales because of, among other things, the high subsidies they had to pay on the device.
mashable.com
Also, an email from late Apple co-founder Steve Jobs sent on 24 October 2010 offered insight into what he planned for the company's future
The full email delved into various topics, including an upcoming "Holy War with Google," Apple being "in danger of hanging on to old paradigm too long (innovator's dilemma)" and plans for the iPhone 4S (termed as the "plus" iPhone 4) and the iPhone 5.
Jobs' email also touches on competitive issues, including a strategy to "catch up to Android" focused on notifications, tethering, speech and Siri
The late Apple CEO Steve Jobs at the Apple World Wide Developers Conference in San Francisco on June 11, 2007.
Image via mshcdn.comMost interestingly, the email also mentions the future of Apple TV. Jobs' bullet points on "Apple TV 2" include a strategy to "stay in the living room game and make a great 'must have' accessory for iOS devices," adding content from NBC, CBS, Viacom and HBO, as well as a possible TV-subscription service.
appleinsider.comThe treasure trove of information detailing Apple's internal conversations came on the second day of the latest Apple versus Samsung trial, which means we may see even more revealing documents in the coming days
Apple's patent lawsuit against Samsung aims to get the South Korea-based electronics giant to pay $2 billion in damages related to the sale of millions of allegedly patent-infringing Samsung smartphones
recode.net