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why the Apple company’s business model differs from that of the key competitor Samsung in the same industry?

User Paul Solt
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Final answer:

Apple's business model contrasts with Samsung by emphasizing product design over manufacturing, entrusting Samsung with the creation of key components for the iPhone. This partnership is an example of international trade's mutual benefits, as each company focuses on their respective strengths, yielding gains for both.

Step-by-step explanation:

The Apple company's business model differs from its key competitor Samsung in that Apple focuses on designing elegant products while relying on Samsung's expertise in manufacturing components. Although they are competitors, Apple and Samsung participate in a mutually beneficial exchange where Samsung is able to provide 26% of the component costs for the iPhone. This is a strategy that leverages the strengths of both companies: Samsung's manufacturing strength in electronics parts, and Apple's strength in product design and consumer experience. This collaboration illustrates the economic logic behind international trade, whereby each company maximizes efficiency by focusing on its core competencies, leading to gains for both through the synergy of their cooperation.

User Americo
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