Samsung vs Apple COLLIN BETORI KEVIN MAYO COLLIN

Samsung vs. Apple COLLIN BETORI KEVIN MAYO COLLIN SHERROD DYLAN WATTS

Overview of the Industry � Which of these consumer electronics to you plan to purchase within the next six months? (Planning to Purchase in 2013) 41% Smartphone 36% PC 33% HDTV 23% Tablet � The “Big 4” Fewer devices Sales are climbing

Apple � Founded April of 1976 by Steve Jobs and Steve Wozniak � Leaders in sales of “Big 4” products � Largest publically traded company (2012) � Employs around 80, 000 worldwide �Best knows for their products such as: � Mac computers � OS X and i. OS operating systems � i. Phone, i. Pad, i. Pod � i. Tunes, Maps, etc.

Mission Statement Apple designs Macs, the best personal computers in the world, along with OS X, i. Life, i. Work and professional software. Apple leads the digital music revolution with its i. Pods and i. Tunes online store. Apple has reinvented the mobile phone with its revolutionary i. Phone and App Store, and is defining the future of mobile media and computing devices with i. Pad.

Samsung � First created by Ling Byung-chull in 1938 Sold groceries and produced their own noodles � Entered the electronics industry in the 1960’s � Worlds largest manufacturer of mobile phones � Sales networks in 80 countries � Employs around 370, 000 people worldwide

Samsung Vision Statement "Inspire the World, Create the Future. ” Philosophy “At Samsung, we follow a simple business philosophy: to devote our talent and technology to creating superior products and services that contribute to a better global society. ”

Samsung Com. �Currently selling stock at $663 �Net Income: $29, 452 �Profit Margin: 40%

Apple Inc. �Currently sells stock at $572 �Net Income: 37, 037 million �Profit Margin: 22%

Products Apple: �i. Phone �i. Pod �i. Pad �Mac. Book �i. Mac �Apple TV �Power. Mac �Mac Mini • • • Samsung: Phones Tablets Smart Watches Televisions Cameras Computers DVD Players Memory Storage Home Appliances Light Bulbs Home Theatre/Audio

UN Global Compact �Human Rights �Labor Standards �Environment �Anti-Corruption

Human Rights/Labor Apple � Chinese Sweatshops: Foxconn � $1 - $2 per hour, 12 hour days � Labor accounts for only 2% of i. Phone costs � Live on factory premises, cost 50% of wage � Employee’s beaten � Employee suicide � Students forced to intern at factories Largest intern program, 180, 000 � Child labor is present � 49 workers poisoned by screen cleaner Paid of with $15, 000 � Explosion kills four people

Human Rights/Labor �Domestic employees treated extremely well �Start at $9 per hour but average $11 �Can make up to $17 per hour �Opportunities to rise

Human Rights/Labor Samsung �Sweatshops �$1 - $2 per hour, 12 hour days �High rate of cancer in employees �Typically training 2 hours, 22 less than legal �Employees go weeks without pay �Fine employees �Abuse is common

Human Rights/Labor �After bad publicity both companies have claimed to do investigations and audits �Little results have been shown �Apple has brought in Fair Labor Association to make improvements �Overall both companies have unethical working conditions

Apple Environmental �Used coal to power its servers and had high estimated electricity consumption �Apple in the past have included toxic components within the i. Phone and other products, "withholding its full list of regulated substances" and poor policies relating to product take-back and recycling. �One of its suppliers in China polluted a river so badly that it turned milk-white, �Trashing tropical forests and coral reefs in Indonesia"

Apple Environmental Response �Steve Jobs released a statement in 2007 "Apple completely eliminated the use of CRTs in mid-2006, " he wrote. "A note of comparison - Dell, Gateway, Hewlett Packard and Lenovo still ship CRT displays today. " "Apple plans to completely eliminate the use of arsenic in all of its displays by the end of 2008. " "Apple plans to completely eliminate the use of PVC and BFRs in its products by the end of 2008. " �It stopped using arsenic, PVC and BFRs; the i. Phone 3 GS was free of all three �Apple’s data centers are based on renewable energy

Samsung Environmental �Samsung Electronics has admitted for the first time that it uses tin in its products that's destroying tropical forests, killing coral and wrecking the lives of communities in Indonesia �In 2008, The Electronics Take. Back Coalition launched a marketing campaign attacking Samsung for not taking environmental responsibility to recycle old electronics that may contain toxic metals �In June 2008, Samsung scored zero on climate change criteria in the 8 th edition of “Guide to Greener Electronics” published by Greenpeace but in March they were at the top of the list

Samsung Environmental Response �Samsung said in a statement that it is piloting a TV take-back and recycling programs in 14 U. S. states, and that it also “has numerous take-back and recycle initiatives throughout the company. ” �Samsung has a goal to reduce green house gas emissions �In 2011 they introduced the Solar Powered Net Book – 2 hours in the sun = 1 hour of use �Reusable packaging for refrigerators �PVC and BFR free products – All new products are beryllium free also

Apple Corruption • Criticized for controlling product launches • Deliberately passing out misinformation in an effort to find leakers • Think Secret Lawsuit - Lawsuits on “John Does” to find leaked information • Gizmodo Incident - Seized computers - Improper use of law enforcement to police its patents

Samsung Corruption �Kim Yong Chul bribing and fabricating evidence �$3. 3 million bribe to a judge �Bank accounts illegally opened �Apple vs. Samsung �$1. 049 billion in damages

Conclusion �Apple is the more ethical company �They have made efforts to improve working conditions, not causing cancer �Business corruption is minimum and typically legal �Use renewable sources for electricity �Products are produced with recycled materials

Recommendations �Treat employees better Safe working conditions Reasonable pay No abuse �They probably wont see any return on investment, in long term they do not have to worry about public scrutiny