Samsung increased its spending by 58% in the United States in 2012 to catch up to Apple (NASDAQ: AAPL). Samsung’s 2012 global advertising budget was around $4.3 billion. Apple, on the other hand, had a much smaller advertising budget of $1 billion. The basic concern is that by Samsung increasing its advertising, with its recent Jay Z ad campaign along with a host of others, Apple’s competitive position within the United States could be compromised.
Samsung currently has 22% of the total market share in the United States. It has only grown by 0.6% after rapidly increasing advertising spending by 58% in the previous fiscal year.
Samsung has been buying marketshare, but that’s not a sustainable operating model.