How Will Apple Deal With Samsung's Competition?

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Nov. 6 (Bloomberg) -- MIT Technology Review Deputy Editor Brian Bergstein discusses the heated competition between Apple and Samsung with Deirdre Bolton on Bloomberg Television's "Money Moves." (Source: Bloomberg)

Competitors -- samsung, one of note, of course.

Glad to have you with us.

If you were on apple's ward, what would you tell the company today -- if you were on apple's board?

There's a lot of talk about what their next big project will be.

A smart watch, a tv?

My fellow editors and i would say that the tv is a huge opportunity.

Big market and a chance to do something that is very apple-y, kind of the classic apple play.

A lot of their big breakthroughs are sometimes hiding in plain sight.

In this case, apple has had the apple tv add-on box for years, and little by little, it has added eases to that that make for a compelling experience such as airplay, which lets you stream content from your mac or ipad directly to your living room tv.

You can use iclaoud as a sort of dvr for shows that you buy.

A complete package could fix the big mess that is the tv experience today.

The late steve jobs even spoke about that, the clunkiness, the frustration.

He even said publicly he did not know exactly how it needs to be fixed, but you are saying the next generation under tim cook is going to figure that out?

I think they need to.

Do not forget that steve jobs told walter isaacson, "i finally cracked it," talking about how tv is a mess.

He said they could create an interactive tv that is dead simple to use.

What is interesting about the apple competition with samsung is that both a lot has changed for apple and a lot has not.

Apple had the great decade of the ipod, the iphone, and the ipad, and that sort of landscape is not likely to be repeated because apple's dominance in those products awoke competitors , most notably samsung.

Whatever apple does is going to be copied or competed with the way faster than it did when it created these products and essentially owned these categories for a few years.

We are seeing the beginnings of this business school case study of the future.

Apple versus samsung is interesting because apple is vertically integrated in a different way.

It tries to marry hardware, software, services, and retail, whereas samsung tries to marry its own components, its own manufacturing, and kind of throw tons of products into the market and see what sticks.

Apple is very cautious and only rolls out products sparingly, and sam sun is very aggressive and very fast.

No matter what apple does, it will be met with competition very quickly.

As a matter of fact, samsung has a smart tv.

I'm looking at this map, and it is apple's r&d spending.

When i was reading the statistics this morning, i was surprised.

Intel, microsoft, google, all companies that spend significantly more on r&d than apple.

Steve jobs has said in the past that innovation has nothing to do with r&d dollars spent, but at the same time, apple, you could argue, is doing things on a shoestring compared to some of its larger competitors.

That's right.

Apple made a big point about a year ago saying that it had increased it's r&d spent -- its r&d spent.

That's another sign about there's not a lot of mystery about what apple is going to do next.

It does not have a vast skunks works operation -- skunks works operation where it can pull anything out of its hat.

Intel is spending an insane amount.

It's budget is enormous.

-- its budget is in or ms.

-- its budget is enormous, but it if you were on apple's ward, what would you tell the company today -- if you were on apple's board?

There's a lot of talk about what their next big project will be.

A smart watch, a tv?

My fellow editors and i would say that the tv is a huge opportunity.

Big market and a chance to do something that is very apple-y, kind of the classic apple play.

A lot of their big breakthroughs are sometimes hiding in plain sight.

In this case, apple has had the apple tv add-on box for years, and little by little, it has added eases to that that make for a compelling experience such as airplay, which lets you stream content from your mac or ipad directly to your living room tv.

You can use iclaoud as a sort of dvr for shows that you buy.

A complete package could fix the big mess that is the tv experience today.

The late steve jobs even spoke about that, the clunkiness, the frustration.

He even said publicly he did not know exactly how it needs to be fixed, but you are saying the next generation under tim cook is going to figure that out?

I think they need to.

Do not forget that steve jobs told walter isaacson, "i finally cracked it," talking about how tv is a mess.

He said they could create an interactive tv that is dead simple to use.

What is interesting about the apple competition with samsung is that both a lot has changed for apple and a lot has not.

Apple had the great decade of the ipod, the iphone, and the ipad, and that sort of landscape is not likely to be repeated because apple's dominance in those products awoke competitors , most notably samsung.

Whatever apple does is going to be copied or competed with the way faster than it did when it created these products and essentially owned these categories for a few years.

We are seeing the beginnings of this business school case study of the future.

Apple versus samsung is interesting because apple is vertically integrated in a different way.

It tries to marry hardware, software, services, and retail, whereas samsung tries to marry its own components, its own manufacturing, and kind of throw tons of products into the market and see what sticks.

Apple is very cautious and only rolls out products sparingly, and sam sun is very aggressive and very fast.

No matter what apple does, it will be met with competition very quickly.

As a matter of fact, samsung has a smart tv.

I'm looking at this map, and it is apple's r&d spending.

When i was reading the statistics this morning, i was surprised.

Intel, microsoft, google, all companies that spend significantly more on r&d than apple.

Steve jobs has said in the past that innovation has nothing to do with r&d dollars spent, but at the same time, apple, you could argue, is doing things on a shoestring compared to some of its larger competitors.

That's right.

Apple made a big point about a year ago saying that it had increased it's r&d spent -- its r&d spent.

That's another sign about there's not a lot of mystery about what apple is going to do next.

It does not have a vast skunks works operation -- skunks works operation where it can pull anything out of its hat.

Intel is spending an insane amount.

It's budget is enormous.

-- its budget is in or ms.

-- its budget is enormous, but it does not spend a significant

This text has been automatically generated. It may not be 100% accurate.

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