It’s war: Samsung’s $5bn ‘Galaxy S4’ plan to kill iPhone 6 at birth

Last year, Samsung spent more than $5.3 billion in sales promotion and marketing of their devices, including the Galaxy and Note range of products.

That’s more than four times the $1 billion that Apple reportedly spent advertising its own stuff, including the iPhone 5 and iPads.

According to Asymco, “while both Apple and Samsung grew their advertising almost at the same rate, doubling their budgets during the last four years, Samsung Electronics has a far higher ad budget. More than four times higher, actually.”

It adds that in the face of lack of Apple data on the entire sales and promotion function, it’s hard to compare the two in a sort of apples with apples analogy.

“Regarding Sales Promotions, however, the comparison is far harder to make. I haven’t any way to guess how much Apple spends relative to the $5.3 billion Samsung spent,” writes author Horace Dediu.

From that, however, we do know that Samsung spent a massive $5.3 billion in sales promotion last year.

This year, it’s only going to get bigger – in fact, much bigger if Samsung’s plan to crush Apple at its home turf by setting up almost 2,000 storefronts (yes, 2,000) is any indication.

Not content with the New York launch of its new spearhead smartphone, the Samsung Galaxy S4, the South Korean electronics major plans to set up almost 2,000 mini Samsung stores across the US to beat arch-rival Apple at home – once and for all in his battle for smartphone supremacy.

The Samsung Experience Shops, as they will be named, are set to start rolling out this Monday at all US Best Buy and Best Buy Mobile venues, with the rollout set to be completed within the next couple of months, just in time for the Galaxy S4 availability, and before Apple Inc.'s rumoured launch of the iPhone 6.

The Korean firm’s plans involve establishing 500 locations at the big-format Best Buy stores and 410 Best Buy Mobile locations by early May, and then follow it up with conquering the remaining 550 big-box-format Best Buy stores by early June, according to technology portal CNet.

“Retail is not something you jump into lightly, especially given consumers have been expecting this as a next step for Samsung,” Ketrina Dunagan, vice-president of retail marketing for Samsung Telecommunications America, told CNET. “Although the carriers and retailers today provide a solid retail experience for our consumers, what we find is a lot of [buyers’] deeper questions just aren’t answered,” she added.

As the name suggests, the ‘Experience Shops’ will offer potential customers a hands-on experience of Samsung devices, including smartphones (Galaxy S3, Galaxy S4, and Galaxy Note 2), as well as tablets, PCs, and other connected devices like cameras, in addition to Samsung smart TVs to show users how the products can interact with each other.

Trained sales representatives will be at hand to show visitors how to control the Samsung TV with a Galaxy S4, for instance.

This war between Apple and Samsung is getting interesting – what’s next?

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