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Can Apple Avoid Being 'RIMMed' By Samsung?

However, what many fail to realize is that Samsung has taken the lead by focusing on the opposite of what Apple does well. It has figured out a way to use Apple's strength for its own benefit by addressing areas such as consumers' budgetary concerns and a focus on offering a wider selection of phones to meet the needs of any consumer at very reasonable prices -- whereas Apple (for the most part) has appealed to the more affluent shopper.

Apple's fall to second place is only part of the surprise because Samsung has no plans on stopping there and repeating the same mistakes that has killed off Research in Motion.

Now that it has overtaken the top spot in device sales, Samsung is looking to leverage that lead by attacking Apple in other areas including its popular iTunes music distribution platform as well as its iCloud service. To that end, Samsung recently announced plans to launch its own mobile music service for its latest Galaxy smartphone model called Music Hub. It's hard to imagine there will be an immediate impact to Apple but it does put names such as Pandora (P) and Sirius XM (SIRI) on the alert.

Samsung has made it so music that is purchased through the service will be stored on the cloud and will then appear on all devices owned by the consumer, both on the cloud and locally for off-line listening. The best part of all of this is that Samsung will allow users to upload and store their own music to the cloud so it can be accessed from either their personal computers or smartphones. Although the company will initially offer the service for free to customers of the new Galaxy phones, it said that it plans to make it available to any competing device.

I think this is a smart play for Samsung as it seeks to capitalize on its leadership position in the fast-growing 4G LTE segment -- one that has boosted increased demand for its family of phones, which includes the Galaxy as well as superphones.

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