Where Apple stakes its success in creating new markets and
dominating them, Samsung, its biggest rival, invests heavily in
studying existing markets and innovating inside them.
Apple, for the first time in years, is hearing footsteps.
The maker of iPhones, iPads and iPods has never faced a challenger able to make a truly popular and profitable smartphone or tablet -- not Dell, not Hewlett-Packard, not Nokia, not BlackBerry - - until Samsung Electronics.
The South Korean manufacturer's Galaxy S III smartphone is the first device to go neck and neck with Apple's iPhone in sales. Armed with other Galaxy phones and tablets, Samsung has emerged as a potent challenger to Apple, the top consumer electronics maker. The two companies are the only ones turning profits in the highly competitive mobile phone industry, with Apple taking 72 percent of the earnings and Samsung the rest.
Yet these two rivals, who have battled in the marketplace and in the courts worldwide, could not be more different. Samsung Electronics, a major part of South Korea's expansive Samsung Group, makes computer chips and flat-panel displays as well as a host of consumer products including refrigerators, washers and dryers, cameras, vacuum cleaners, PCs, printers and TVs.
Where Apple stakes its success in creating new markets and dominating them, as it did with the iPhone and iPad, Samsung invests heavily in studying existing markets and innovating inside them.
"We get most of our ideas from the market," said Kim Hyun-suk, an executive vice president at Samsung, in a conversation about the future of mobile devices and television. "The market is a driver, so we don't intend to drive the market in a certain direction," he said.
That is in stark contrast to the philosophy of Apple's late founder, Steven P. Jobs, who rejected the notion of relying on market research. He memorably said consumers did not know what they want.
Indeed, nearly everything from the way Samsung does research to its manufacturing is unlike Apple. It razzes Apple in its cheeky advertisements while Apple stays above the fray.
And the South Korean manufacturer may even be putting some pressure on Apple's world-class designers. Before Apple released the iPhone 5, which had a larger screen than earlier models, Samsung had already been selling phones with even bigger displays, like the Galaxy Note, a smartphone so wide -- its screen is 5.3 inches, or 13.5 centimeters -- that gadget blogs call it a phablet.
Samsung outspends Apple on research and development: $10.5 billion, or 5.7 percent of revenue, compared with $3.4 billion, or 2 percent. (Samsung Electronics is slightly bigger than Apple in terms of revenue -- $183.5 billion compared with $156.5 billion -- but Apple is larger in terms of stock market value.)
Samsung has 60,000 staff members working in 34 research centers across the globe, including Russia, Britain, India, Japan, Israel, China and Silicon Valley. It polls consumers and buys third-party research reports, but it also embeds employees in countries to study trends or merely to find inspiration for ideas.
Designers of the Galaxy S III say they drew inspiration from trips to Cambodia and Helsinki, a Salvador Dali art exhibit, and even a balloon ride in Africa. (It employs 1,000 designers with backgrounds like psychology, sociology, economy management and
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