Apple Inc. (AAPL) Scores Less Than Samsung In Marketing Spending

iphone 8 apple stockElisaRiva / Pixabay

Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) has outperformed Apple Inc. (NASDAQ:AAPL), this time in marketing spending. In 2011 Apple was ahead, spending on advertising in the ratio of more than three to one for its iPhones in the United States.

Last year, Samsung retaliated with a marketing target on TV, billboards, the internet and the print media that fetched the number one position for the Korean giant

Apple Inc. (AAPL) Scores Less Than Samsung In Marketing Spending

In 2012, Samsung spent $401 million on advertising its phones in the U.S. compared to Apple Inc. (NASDAQ:AAPL)’s $333 million, as per ad research and consulting firm Kantar Media.

The marketing has helped Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) outperform Apple Inc. (NASDAQ:AAPL) as the leading smartphone manufacturer and top notch Smartphone Company in the industry. The marketing of the Smartphone has become more aggressive and competitive than ever, and the marketing spending of Samsung will give it a top edge over other players in the Industry.

The aftereffects of the marketing budget of Samsung is evident everywhere, from its “Next Big Thing” campaign on television to the star studded events it threw last year. In October, Samsung held a grand party to launch it Galaxy Note 2 in the United States. There were many big events thrown for the launch of Note 2 oversees, which included performance by Kayne West at the old James Farley Post Office in Manhattan.

In the technology field, Apple Inc. (NASDAQ:AAPL) has the strongest brand recognition and thus it does not need to stuff as much cash in marketing. Customers wait in queues to get their iPhone and ipad whenever a new model is launched. Samsung, however, has never experienced such passion in the United States for their phones and other products. While Samsung is the number one smartphone maker, Apple Inc. (NASDAQ:AAPL) still rules a majority of the industry’s profits.

The market share of Apple Inc. (NASDAQ:AAPL) is basically backed by three products, its flagship iPhone 5, as well as the older and discounted iPhone 4S and iPhone4. Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) has the successful lineup of its flagship, which include Galaxy S3, Galaxy Note 2 and heap of other low and mid tier Smartphones.

The third place was owned by HTC Corp (TPE:2498) which trimmed its spending to $46 million, decline from $124 million in 2011. The other two in top five were Blackberry and Nokia, both of them cut their budget last year. According to advertising analytics firm Ace Metrix in January, Samsung was behind Apple’s iPhone as America’s most effective mobile phone brand.

It is expected that Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) will spend massively with the upcoming launch of Galaxy S4. Samsung, however, refused to comment on its marketing budget.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at [email protected]

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