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To understand Samsung’s rise to dominance we have to go back to the turn of the new millennium when Apple released their first generation iPod in 2001, quickly followed by the iTunes store in 2002. Consequently Apple was determined to outsource both of these areas of operation from the outset.
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Industries with a higher share of IT workers saw more concentration between 2002 and 2007, even after controlling for M&A activity and several other variables. They document that physical investment (machines, factories, equipment) has declined relative to intangible investment (software, data, employee training, management).
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