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Commerce Project - 1

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Commerce Project - 1

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sujatavkarajagi
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© © All Rights Reserved
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ST PATRICK’S ACADEMY

BENGALURU

2025-26

TOPIC:Marketing strategies

SUBMITTED BY SUBMITTED TO
VINOD V K Reshma ma’am
XII -B Commerce
Acknowledgement

I want to thank everyone who has helped and supported me throughout


my college project, Reshma ma’am.​
First and foremost, a big thank you to my Teacher, for giving me
valuable guidance and pointing me in the right direction.​
I am also grateful to our wonderful principal, who has created a
nurturing and creative environment in our college.​
I owe a special debt of gratitude to my parents, whose constant
encouragement, patience, and understanding have been the foundation
of my success.​
I would also like to acknowledge my friends who contributed their ideas
and perspectives, which greatly enriched the project.​
I appreciate each and every one of you for shaping this project and
enhancing my learning experience. Thank you all!

1
INDEX

S.no Content Pg.no

1. Acknowledgement 1

2. Introduction 4-5

3. Apple and Samsung’s background 6-7

4. Product mix strategy 8-10

5. Price mix strategy 11-13

6. Place mix strategy 14-16

7. Promotion mix strategy 17-19

8. Customer engagement and brand loyalty 20

9. Market share and performance analysis 21

10. SWOT analysis 22-23

11. conclusion 24

12. Bibliography 25

3
Introduction
The smartphone industry is one of the most fast-paced and
competitive markets in the world. With rapid technological
advancements and evolving consumer preferences, brands
must continuously innovate to maintain their market
position. Among the most dominant players in this industry
are Apple Inc. and Samsung Electronics.

Both companies have a global presence, millions of loyal


customers, and a strong brand reputation. However, their
marketing strategies differ significantly, shaping how they
attract and retain customers.

Apple’s Marketing Approach

Apple has established itself as a luxury, premium brand


known for its exclusive ecosystem, minimalist design, and
seamless user experience. The company focuses on product
differentiation, premium pricing, and strong brand loyalty.
Apple's marketing heavily relies on emotional appeal,
storytelling, and a strong connection with its customers.

Samsung’s Marketing Approach

Samsung, on the other hand, takes a diversified approach,


targeting multiple market segments. Unlike Apple, which
offers limited product choices, Samsung provides a wide range
of smartphones, from budget-friendly models to premium
flagship devices. Samsung’s marketing strategy focuses on
innovation, mass appeal, aggressive promotions, and global
market penetration.

Why Compare Their Marketing Strategies?

Both companies have successfully dominated the smartphone


industry, yet their approaches to product positioning,
pricing, distribution, and promotion are very different. This
comparison will analyze their strategies based on the 4Ps of
Marketing:

1.​Product Mix – How they design and position their


products
2.​Price Mix – Their pricing strategies and target markets
3.​Place Mix – Distribution channels and global reach
4.​Promotion Mix – Advertising, branding, and customer
engagement

By examining these factors, we can better understand how


Apple and Samsung compete in the global smartphone market
and what makes their marketing strategies effective.
Apple’s background
Apple Inc. is one of the world’s most valuable and influential
technology companies, known for its premium consumer
electronics, software, and services. Founded in 1976 by Steve
Jobs, Steve Wozniak, and Ronald Wayne, Apple has
transformed industries with its innovative products, sleek
designs, and strong brand loyalty.

2. Company Background
●​Founded: April 1, 1976
●​Founders: Steve Jobs, Steve Wozniak, Ronald Wayne
●​Headquarters: Cupertino, California, USA
●​CEO: Tim Cook (since 2011)
●​Industry: Technology (Consumer Electronics, Software,
and Services)
●​Market Position: Premium, innovation-driven, and
ecosystem-focused

3. Core Products & Services


Apple offers a highly integrated ecosystem of devices and
services that work seamlessly together, enhancing customer
retention and brand loyalty.
3.1. Hardware (Devices)
●​iPhone – Apple’s flagship smartphone series
●​Mac – Premium laptops and desktops (MacBook, iMac,
Mac Mini)
●​iPad – High-end and budget-friendly tablets
●​Apple Watch – Smartwatches focused on fitness, health,
and connectivity
●​AirPods & Accessories – Wireless earbuds and other
accessories
Samsung’s background
Samsung Electronics is a global technology giant that
dominates multiple industries, including consumer
electronics, semiconductors, home appliances, and mobile
communications. Unlike Apple, which focuses on a premium
ecosystem, Samsung has a diverse product portfolio that caters
to all market segments, from budget-friendly to premium
devices.

2. Company Background
●​Founded: January 13, 1969
●​Founder: Lee Byung-chul
●​Headquarters: Seoul, South Korea
●​CEO: Han Jong-hee and Kyung Kye-hyun (Co-CEOs as of
2023)
●​Industry: Technology (Smartphones, Semiconductors,
Home Appliances, Display Panels, etc.)
●​Market Position: Mass-market, innovation-driven, and
price-diverse strategy

3. Core Products & Services


Samsung’s extensive product portfolio allows it to serve a wide
range of consumers and industries.
3.1. Hardware (Devices)
●​ Galaxy Smartphones – Flagship (Galaxy S, Z Series), Mid-range
(Galaxy A), Budget (Galaxy M)
●​Tablets – Galaxy Tab series (premium & budget models)
●​Laptops & PCs – Galaxy Book and other computing
devices
●​Wearables – Galaxy Watch and Galaxy Buds
Product mix strategy
Apple’s Product Mix Strategy is centered around premium
quality, innovation, and ecosystem integration. Unlike
competitors that focus on offering a wide range of products at
different price points, Apple follows a selective and minimalist
approach, ensuring brand exclusivity and customer loyalty.

3.1. Limited & Exclusive Product Line


Apple maintains a small but highly impactful product lineup,
focusing on quality over quantity. Instead of launching
multiple models in different price segments like Samsung,
Apple releases a limited number of high-end devices every
year, reinforcing its premium positioning.

3.2. Strong Ecosystem Integration


One of Apple’s biggest strengths is its ecosystem, where all
devices and services work seamlessly together.
✔️ Handoff & Continuity: Users can start a task on one Apple
✔️ iCloud Synchronization: Syncs data across iPhone, iPad,
device and continue it on another.​

✔️ Apple Pay & Wallet: Secure payment system integrated


Mac, and Apple Watch.​

✔️ App Store Exclusivity: Developers create apps optimized


across all devices.​

for Apple's high-end hardware.


📌 Key Differentiator: Apple's product mix is designed to
keep users locked into its ecosystem, making it difficult for
customers to switch to competitors like Samsung or
Android-based brands.
Samsung Electronics adopts a diversified product mix strategy
that spans across multiple market segments, catering to a wide
range of consumer needs, from budget-conscious buyers to
tech enthusiasts seeking the latest high-end gadgets. Unlike
Apple’s selective product lineup, Samsung follows a strategy of
offering variety and customization to appeal to various target
markets globally.

3.1. Wide Product Portfolio


Samsung is known for offering an extensive range of products
across various categories. Its product line caters to multiple
price points and customer preferences, allowing the brand to
capture a significant share in both premium and budget
markets.3.2. Emphasis on Innovation
Samsung is known for technological innovation, often being
the first to market with new features and products. Their
commitment to cutting-edge technology is reflected in their
products, making them a leader in various device categories.

Innovative Features in Samsung’s Product Line:


●​Foldable smartphones (Galaxy Z Series) – The first major
brand to popularize foldable screens.
●​AMOLED displays – High-quality, energy-efficient
display technology that has set new standards for mobile
screens.
●​5G Connectivity – Leading the charge in integrating 5G
technology across its smartphone range.
●​AI & Camera Innovations – Samsung devices often
incorporate advanced AI and computational photography
to enhance user experience.
3.3. Comparison of Product Strategies: Apple vs.
Samsung
When comparing the product strategies of Apple and
Samsung, we can observe significant differences that reflect
their brand philosophy, market positioning, and target
consumer base. Below, we’ll break down how each company
approaches product mix and market segmentation, and
highlight key differences.

Apple's Product Strategy


●​Narrower Product Range: Apple focuses on a limited
product lineup that is premium, sleek, and cohesive,
aligning with its brand image of exclusivity and
simplicity. Apple’s products are generally positioned as
high-end and are designed to complement each other
within a closed ecosystem.
●​Premium Segmentation: Apple caters primarily to the
premium market, offering flagship models and
higher-end features with minimal price variations
between models. For example, iPhones come in a few
models like the iPhone 15, iPhone 15 Pro, and iPhone SE.

Samsung's Product Strategy


●​Wider Product Range: Samsung offers a much broader
range of products, catering to multiple customer
segments. This includes premium flagship models,
mid-range devices, and budget options in its Galaxy S, A,
M, and Z series.
●​Broad Market Segmentation: Samsung operates in both
the premium market with products like the Galaxy S
Series and Galaxy Z Fold, and the mid-range to budget
segments with the Galaxy A and Galaxy M Series.
Price mix strategy
High-Price Positioning
Apple’s pricing strategy revolves around its premium pricing
model, where products are priced higher than competitors.
This pricing strategy is supported by the brand's reputation
for high-quality, innovative products and a focus on design
excellence.
●​Flagship products like iPhones and MacBooks are priced
at the top-end of the market, often starting at
significantly higher prices compared to competitors in
the same category.
●​Apple uses premium pricing not just to reflect its
high-quality product features but to maintain the
exclusivity and luxury brand image.

Price as a Reflection of Quality


●​Apple’s pricing reflects the perception that their products
are more advanced and more reliable compared to cheaper
alternatives.
●​For example, the iPhone Pro models and MacBook Pro are
priced higher because they are perceived as superior in
terms of both design and functionality.
📌 Key Differentiator: Apple focuses on offering
premium-priced products that emphasize value through
quality, innovation, and a seamless ecosystem, rather than
competing on lower price points.
Samsung’s price mix strategy is a well-rounded approach
designed to serve multiple market segments ranging from
premium customers to those seeking budget-friendly options.
With its diverse product portfolio, Samsung employs a
combination of penetration pricing, competitive pricing,
product line pricing, and psychological pricing to maintain its
position as a global leader in the technology industry.

1. Competitive Pricing Strategy


Price Positioning Against Competitors
Samsung adopts a competitive pricing strategy, positioning its
products in the market relative to competitors, especially
Apple, in the premium segment and other brands in the
budget and mid-range segments.
●​Premium Segment (Galaxy S & Z Series): In the premium
smartphone market, Samsung’s flagship products like the
Galaxy S and Galaxy Z series are priced competitively to
offer customers better value than its closest competitors,
particularly Apple.

●​Mid-Range and Budget Segments (Galaxy A & M Series):


Samsung’s mid-range and budget smartphones like the
Galaxy A and Galaxy M Series are priced lower than
Apple’s products but still within the premium brand
segment. Samsung competes with brands like Xiaomi,
Oppo, and Motorola by offering good value-for-money
smartphones with similar high-end features at a more
affordable price.
Both Apple and Samsung are leaders in the tech industry, but
their pricing strategies diverge significantly due to differences
in brand positioning, target markets, and product strategies.
Let’s break down and compare their price mix strategies
across key factors:

1. Target Market & Positioning


●​Apple uses a premium pricing strategy across its entire
product range. Its focus is on positioning itself as a
luxury brand with a reputation for innovation, quality,
and exclusivity. As a result, Apple products like the
iPhone, MacBook, and iPad are priced higher to reinforce
this premium image, and it generally avoids competing
on price.

●​Samsung, on the other hand, adopts a broader pricing


strategy that targets multiple segments. Samsung’s
pricing strategy ranges from premium (e.g., Galaxy S and
Z series) to budget-friendly (e.g., Galaxy A and M series).
This allows Samsung to cater to a wider customer base,
including price-sensitive consumers in emerging markets.

📌 Key Differentiator: Apple’s strategy focuses on premium


customers, while Samsung serves both premium and
budget-conscious segments, providing more price flexibility.
Place mix strategy
Apple’s place mix strategy focuses on creating a seamless and
exclusive distribution network that ensures its products are
available to customers through multiple channels while
maintaining control over the brand experience. The company
emphasizes direct sales, strategic partnerships, and global
retail presence to provide customers with a premium and
consistent shopping experience. Here’s a breakdown of Apple’s
approach to its place mix:

1. Exclusive Apple Retail Stores


Flagship Stores and Experience Centers
Apple’s retail stores are a key component of its place mix
strategy, offering customers a unique in-store experience that
reflects the brand’s values of innovation and design excellence.
●​Flagship Apple Stores: Apple operates flagship stores in
major cities worldwide, such as in New York, London,
and Shanghai, which are designed not just as retail spaces
but as community hubs. These stores offer hands-on
product testing, workshops, and personalized setup
sessions, enhancing customer engagement and brand
loyalty.
●​Apple Store Design: Apple’s stores are designed to
provide an immersive experience with open spaces,
modern architecture, and minimalist aesthetics. These
stores are strategically located in high-traffic urban areas,
reinforcing Apple's premium brand image.
📌 Key Differentiator: Apple’s retail stores not only serve as
sales points but as brand ambassadors.
Samsung’s place mix strategy is designed to ensure that its
products are widely available to meet the demands of a diverse
global market. The company follows a multi-channel
distribution strategy, utilizing both direct and indirect
channels to maximize reach while adapting to local market
conditions. Samsung places a significant emphasis on partner
networks, retail presence, and online sales, balancing between
maintaining brand control and offering products across
various price segments.

1. Samsung Retail Stores and Experience Centers


Samsung Branded Retail Spaces
While not as numerous as Apple’s, Samsung also operates
branded retail stores and experience centers in key cities
around the world. These stores serve as both sales outlets and
spaces for brand engagement and customer education.
●​Samsung Experience Stores: These stores allow customers
to experience Samsung’s range of products, including
smartphones, wearables, home appliances, and smart TVs.
They offer product demonstrations, hands-on
interactions, and special promotions.
●​Flagship Locations: In major cities, Samsung opens
flagship stores that showcase their latest innovations and
offer unique experiences such as virtual reality displays,
interactive product zones, and immersive experiences.
📌 Key Differentiator: Samsung’s stores serve as immersive
environments that focus on providing product experiences,
particularly around their technology ecosystem (smartphones,
wearables, smart home appliances).
The place mix strategy refers to how a company makes its
products available to consumers and ensures efficient
distribution. Both Apple and Samsung are leaders in the
consumer electronics market but have adopted slightly
different distribution strategies to achieve their global reach.
Let’s compare their place mix strategies across various key
elements:

1. Retail Stores and Branded Experience


Apple:
●​Flagship Stores: Apple has a significant number of Apple
Stores globally. These stores are not only places to buy
products but are also experience centers. Apple’s flagship
stores in cities like New York, London, and Shanghai
offer hands-on demonstrations, workshops, and even
community events.
●​Premium and Exclusive: Apple’s retail strategy is aimed at
maintaining a premium brand image. It ensures a
consistent customer experience across all its stores.

Samsung:
●​Experience Stores: Samsung also operates Samsung
Experience Stores and flagship stores in key cities around
the world, but the number of these stores is not as
extensive as Apple’s. They focus on product interaction,
demos, and engaging customers with technology (e.g.,
VR, smart home experiences).
●​Wider Reach: Samsung has a more varied retail footprint,
with stores in both high-end locations and in less
exclusive areas. Their stores are more focused on a broad
customer base, including mid-range consumers.
Promotion mix strategy
Apple’s promotion mix strategy is designed to reinforce its
premium brand image while effectively communicating its
unique value propositions to various customer segments.
Apple uses a blend of traditional and digital marketing
strategies, focusing heavily on brand loyalty, exclusivity, and
product innovation. The company relies on an integrated
promotional approach that includes advertising, sales
promotions, public relations, personal selling, and direct
marketing.
Here’s an overview of how Apple implements its promotion
mix strategy:

1. Advertising
High-Impact Campaigns
Apple is known for its innovative and minimalist advertising
campaigns that emphasize the simplicity, elegance, and
functionality of its products. The company invests heavily in
TV commercials, digital ads, print media, and outdoor
billboards.
●​Iconic Ads: Apple often uses emotionally-driven
advertisements that focus on the user experience, such as
the famous "Shot on iPhone" campaign, which showcases
real customer content captured using their iPhones. This
not only advertises the product but also builds a sense of
community and creativity among users.
●​Product Launch Events: Apple’s keynote presentations
and product launch events have become a major
promotional tool. These events are highly anticipated,
and the company makes them global spectacles that
generate significant media coverage.
Samsung’s promotion mix strategy is designed to reach a
diverse customer base across various markets and price
segments. While Apple focuses heavily on a premium image,
Samsung uses a more diverse and aggressive approach that
caters to a broad spectrum of consumers, from
budget-conscious buyers to premium customers. Samsung
combines advertising, sales promotions, public relations,
personal selling, and digital marketing in a way that helps
them maintain their global leadership in consumer
electronics.
Here’s an overview of Samsung’s promotion mix strategy:

1. Advertising
Mass Advertising Campaigns
Samsung’s advertising is designed to appeal to a wide range of
customers across different regions and product categories. It
uses various media platforms, including television, digital ads,
billboards, print media, and radio.
●​High-Impact TV Commercials: Samsung's TV ads often
highlight the innovative features of their products, like
the Galaxy smartphones, QLED TVs, and smart home
technology. These ads are designed to build brand
awareness and position Samsung as a leader in innovation.
●​Celebrity Endorsements: Samsung frequently partners
with celebrities and influencers to enhance product
visibility. They have worked with famous figures like
David Beckham (Galaxy S5 campaign) and LeBron James
to endorse their products and associate them with
prestige and quality.
Comparison of Positioning Strategies: Apple vs. Samsung
1. Definition of Positioning
Positioning refers to the way a brand is perceived in the
minds of consumers, relative to its competitors. Both Apple
and Samsung have developed distinct positioning strategies
that aim to differentiate their products in the highly
competitive tech market. These strategies are influenced by
their unique value propositions, target markets, and brand
identities.

2. Apple’s Positioning Strategy


Apple positions itself as a premium brand offering
high-quality, innovative, and aesthetically appealing products.
The company’s positioning focuses on simplicity, user
experience, and exclusivity. Key elements of Apple’s
positioning include:
Premium Pricing and Quality: Apple’s pricing strategy
reflects its positioning as a luxury tech brand.

3. Samsung’s Positioning Strategy


Samsung positions itself as an innovative leader in consumer
electronics, but with a broader appeal to different segments,
from budget-conscious buyers to premium customers.
Samsung’s positioning focuses on offering advanced
technology, diverse product options, and value for money.
Technology Leadership and Innovation: Samsung promotes
itself as a technology innovator, frequently introducing
state-of-the-art features in its products, such as foldable
screens, 5G technology, and Quantum Dot displays

Customer engagement and brand


loyalty
Apple:
●​Customer Engagement: Apple focuses on creating a
seamless ecosystem that encourages customers to stay
engaged across devices (iPhone, iPad, Mac, Apple Watch,
etc.). Its stores, both physical and online, offer a
personalized shopping experience. Additionally, Apple’s
customer support, like Genius Bar, fosters ongoing
engagement by providing after-sales service and advice.
●​Brand Loyalty: Apple enjoys high customer loyalty due to
its premium product quality, intuitive design, and
consistent user experience. The brand’s emotional
connection with users is fostered through campaigns that
appeal to personal creativity and empowerment, making
customers feel like part of an exclusive community.
Samsung:
●​Customer Engagement: Samsung engages customers
through its Samsung Members App, where users can
access product support, promotions, and participate in
challenges or contests. Samsung also hosts events like
Samsung Unpacked to keep customers excited about new
products.
●​Brand Loyalty: Samsung has built a loyal customer base
by offering a diverse product range that caters to various
price points, making it accessible to a wider audience. Its
focus on innovation and the integration of smart devices
(e.g., smart TVs, wearables) strengthens customer loyalty
by creating an interconnected experience.
Market share and performance
analysis
Apple:
●​Market Share: Apple holds a strong market share in the
premium smartphone segment. In 2024, Apple’s iPhone
continues to dominate with around 45-50% of the global
premium smartphone market. Apple also performs well
in markets like the US, where it leads in both sales and
brand loyalty.
●​Performance: Apple’s revenue continues to grow due to
its high-margin products, like the iPhone, Mac, and
services. In Q4 2024, Apple’s overall revenue hit $123.9
billion, with a significant portion coming from services
(App Store, iCloud, etc.). Its high customer retention rate
and innovative products (such as the M1/M2 chips) keep
it a dominant player in the tech industry.
Samsung:
●​Market Share: Samsung holds a significant global
smartphone market share, consistently leading with
20-25% of the global market, though it faces strong
competition from Apple and other Android
manufacturers. It is a leader in emerging markets with its
budget to mid-range smartphones.
●​Performance: Samsung continues to perform well, driven
by its diverse product portfolio across smartphones,
consumer electronics, and semiconductors. In Q3 2024,
Samsung posted $63 billion in revenue, with strong sales
in smartphones and displays. Its innovative products,
such as the foldable Galaxy Z series, position Samsung as a
leader in smartphone innovation.
SWOT analysis
Apple:
Strengths:
●​Strong Brand Loyalty: Apple has a dedicated customer
base, with high retention rates due to its seamless
ecosystem (iPhone, iPad, Mac, Apple Watch, etc.).
●​Premium Product Line: Apple’s high-quality products
and innovative design create a premium brand
perception, allowing it to command higher prices.
Weaknesses:
●​High Price Points: Apple’s premium pricing limits its
market to higher-income consumers, reducing its reach in
emerging markets.
●​Dependence on iPhone: A large portion of Apple's
revenue depends on iPhone sales, making it vulnerable to
shifts in smartphone demand.
Opportunities:
●​Expansion in Emerging Markets: Apple has room to grow
in emerging markets where it has a smaller market share
compared to competitors like Samsung.
●​Services Growth: Expanding its services division (iCloud,
Apple TV+, App Store) provides higher margins and
recurring revenue.
Threats:
●​Intense Competition: Apple faces fierce competition from
brands like Samsung and Chinese manufacturers like
Huawei and Xiaomi in the smartphone and technology
market.
Samsung:
Strengths:
●​Diversified Product Portfolio: Samsung has a wide range
of products, from smartphones to consumer electronics,
home appliances, and semiconductors, allowing it to
capture a broad market.
●​Innovation Leader: Samsung is a front-runner in
introducing cutting-edge technology, such as foldable
phones, 5G devices, and Quantum Dot displays,
positioning it as an industry innovator.
Weaknesses:
●​Price Sensitivity: While Samsung has premium offerings,
much of its revenue comes from mid-range and budget
phones, which are more price-sensitive and face stiff
competition.
Opportunities:
●​Expansion in 5G and Foldable Tech: Continued
investment in 5G networks and foldable smartphones
could provide significant growth opportunities and
market leadership.
●​Smart Home and IoT: Samsung can capitalize on the
smart home and Internet of Things (IoT) markets by
connecting more products within its ecosystem
Threats:
●​Intense Competition: Samsung faces stiff competition
from Apple, Chinese smartphone makers (Huawei,
Xiaomi), and other Android manufacturers, which erodes
its market share, especially in the budget segment.
Conclusion
In conclusion, both Apple and Samsung are dominant players
in the global technology market, with each having distinct
strategies that align with their brand identities and target
audiences.
●​Apple excels in the premium market, offering
high-quality, innovative products with a focus on user
experience, design, and ecosystem integration. Its brand
loyalty, driven by a seamless, intuitive experience across
devices, ensures its strong market presence. However,
Apple faces challenges in terms of high pricing and
dependency on iPhone sales, as well as growing
competition from Android manufacturers.
●​Samsung, on the other hand, thrives in both premium
and budget segments, offering a diverse range of products
that cater to various consumer needs. With its leadership
in innovation (such as foldable technology and 5G) and
global reach, Samsung appeals to a broader audience,
from budget-conscious buyers to tech enthusiasts seeking
cutting-edge features. However, its dependence on
Android and its vulnerability to price sensitivity in
mid-range products pose risks to its position in the
market.
Both companies face intense competition from each other and
other global players, and their ability to adapt to evolving
consumer preferences, emerging markets, and new
technologies will determine their future success. Apple’s
strength lies in its premium ecosystem and customer loyalty,
while Samsung’s advantage is its product diversity and market
accessibility.
Bibliography

https://www.fool.com/

https://www.wired.com/

https://www.cnbc.com/

https://techcrunch.com/

https://www.zdnet.com/

https://www.ft.com/

https://www.techradar.com/

https://www.reuters.com/

https://www.marketwatch.com/

https://www.cnet.com/

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