…which for once doesn’t involve a man with a beard yelling “Allahu Akbar!”.
Why Samsung’s exploding-phone nightmare should terrify Apple
Samsung Electronics’ nightmarish phone-explosion problem may weigh on its sales and leave a blemish on the brand, but the outcome might’ve been worse had it happened to Apple Inc.
Apple’s business model is currently very dependent on its handheld devices, though the company has made hires and acquisitions in the past year that may signal it is diversifying into things like television, smart cars and augmented reality. It has also been increasingly diversifying into services, with revenue deriving from apps and services, such as Apple Care and Apple Music, surpassing Mac sales for the first time this year to become Apple’s second-largest source of revenue behind the iPhone. But the growth of services is dependent on its devices working properly.
Samsung, on the other hand, has a highly diversified business, which includes smart appliances, such as refrigerators, as well as television displays and a chip-making unit. Last quarter, its semiconductor business comprised 23.5% of total revenue. Its consumer electronics division, which includes its digital appliances, printers and health and medical equipment, comprised 23% of sales.
Besides providing interesting fodder for a Referee plotting out deep strategy before dragging the PCs into a corporate dirty war, the story also reminds me of the Empty Quarter’s status as a dumping ground for products the rest of the Imperium has rejected (in addition to the preferred exile site for those relatives other nobles want stashed far from anywhere important.)
But before you can sell worthless – if not life-threatening – rejects for “An amazing 80% off retail! EIGHTY PERCENT OFF!!!!”, you actually need to transport it there.
Which is where desperate PCs come in, with starship mortgages to pay.
True: the phones won’t be shipped fully powered up, so nothing is going to go BOOM! three days into jumpspace. But after the phones have been sold and homes start burning down, someone is going to start looking for those Evil Outsiders who slipped in the bad product…
Overheard in a forum:
“So, I guess snitches don’t get stitches where you come from.”
“No, they get autopsies.”
I guess it depends on which neighbourhood you work in.