ASML and Samsara: What Equipment Exclusivity and the IoT Subscription Model Tell Us

ASML supplies extreme ultraviolet (EUV) lithography equipment. This equipment is essential for advanced semiconductor manufacturing processes. The technological barriers to developing and producing the equipment are high, so only a small number of companies supply it.

ASML's equipment shipments and installations are directly linked to customers' process transitions. Because the equipment is complex, installation and customer support services have a significant impact on revenue. The company is expanding its business scope through services related to its equipment.

Samsara operates an industrial Internet of Things (IoT) platform. It combines hardware sensors with cloud software for vehicle location and fleet management, remote field monitoring, and other uses. After selling the hardware, it generates recurring revenue through cloud subscriptions.

Samsara’s revenue structure is characterized by a progression from hardware installation to software subscriptions. As customers continue using the platform, subscriptions account for a larger share of revenue. The company manages customer retention and expanded platform usage as key operating metrics.

The two companies build competitive strength through technological advantages and business models in different fields. ASML shapes the supply structure through its high-priced equipment and installation capabilities. Samsara combines hardware and subscriptions to strengthen its recurring revenue base.