Apple and Samsung Tied as World's Largest Smartphone Makers in Q4 2014 [Updated]

[Palladium SG]

There is only so long Samsung can play the specs war game until low-cost players in Android has "good enough" specs at far lower prices with virtually the same software ecosystem. Stuff like Snapdragon 805 vs 400? The vast majority won't even notice a difference in reality.

And they really need to do a reality check on costs...The marketing budget on a per phone basis for Samsung alone in 2013 was enough to pay for like 100 million Xiaomi Redmis at retail price.

 

[Mildredop]

How come Samsung's profits aren't higher than Apple's, then? They're selling tonnes more phones than Apple and, at the same time, selling Apple parts for the iPhone.

 

[I7guy]

How come Samsung's profits aren't higher than Apple's, then? They're selling tonnes more phones than Apple and, at the same time, selling Apple parts for the iPhone.

It's not "fair" to compare the entire Samsung corporate structure with Apple structure. Samsung has multiple lines of business including TV, refrigerator, chips, phones.

Want to compare mobile phone business, because that is where these companies compete.

 

[Mildredop]

It's not "fair" to compare the entire Samsung corporate structure with Apple structure. Samsung has multiple lines of business including TV, refrigerator, chips, phones.

Want to compare mobile phone business, because that is where these companies compete.

Not too sure how that relates to my post. If anything, it further validates my question.

If Samsung sell more phones and chips, as well as TVs, fridges etc., how come their profits aren't higher than Apple's?

 

[I7guy]

Not too sure how that relates to my post. If anything, it further validates my question.

If Samsung sell more phones and chips, as well as TVs, fridges etc., how come their profits aren't higher than Apple's?

My reply relates to your post because you are comparing two companies with completely dissimilar businesses except for one overlapping line of business.

This one overlapping business, mobile phones, has generated massive profits for Apple, more than then entire Samsung business line. More than a lot of other companies with diversified interests as well.

 

[viorelgn]

Both companies shipped a total of 74.5 million smartphones in the quarter, claiming 19.6 percent of the market each -- while Samsung saw its shipments drop from 86 million in Q4 2013, Apple's shipments increased from 51 million during the same period.

 

[Mildredop]

My reply relates to your post because you are comparing two companies with completely dissimilar businesses except for one overlapping line of business.

This one overlapping business, mobile phones, has generated massive profits for Apple, more than then entire Samsung business line. More than a lot of other companies with diversified interests as well.

I know all that!!

So how come Samsung sell more products at a higher volume, but their profits are lower?

 

[I7guy]

I know all that!!

So how come Samsung sell more products at a higher volume, but their profits are lower?

My guess is their margin per device is much lower than apple for their lower-ended devices. I'm not familiar with every Samsung Android device, but they sell a lot world-wide and not all of them are flagship.

See this link below.

http://pricebaba.com/mobile/pricelist/android-phones-price-list#s_gprs=1&s_bluetooth=1

 

[kdarling]

So how come Samsung sell more products at a higher volume, but their profits are lower?

Apple charges more. Duh

Samsung sells phones in all price ranges, thus allowing millions of people around the world to be connected... people who would not be able to buy phones at Apple's prices.

This is, btw, why cellular patent holders have for decades set their royalties based on a phone's price:

A company charging a high price can afford to pay more than a company charging just a few dollars above cost. This enabled companies to sell models even at the very low end.

That is what helped to so quickly bring cellular adoption all around the world, creating an infrastructure and ready-made market that latecomers like Apple have profited from so greatly.

 

[I7guy]

Apple charges more. Duh

Samsung sells phones in all price ranges, thus allowing millions of people around the world to be connected... people who would not be able to buy phones at Apple's prices.

This is, btw, why cellular patent holders have for decades set their royalties based on a phone's price:

A company charging a high price can afford to pay more than a company charging just a few dollars above cost. This enabled companies to sell models even at the very low end.

That is what helped to so quickly bring cellular adoption all around the world, creating an infrastructure and ready-made market that latecomers like Apple have profited from so greatly.

They way your post is worded Samsung is doing the world a favor by selling cheap phones? How altruistic of them. And Apple is just a money grabbing corporation. I guess in that vein car companies like Cadillac, Lexus, BMW, Acura, Ferrari and Maserati are against the world's population driving.

 

[kdarling]

They way your post is worded Samsung is doing the world a favor by selling cheap phones?

Every company that sold affordable phones did the world a favor.

Using your car analogy, the reason why there's roads everywhere for expensive cars to drive on, is because of all the affordable cars and trucks that made such roads practical and necessary.

 

[I7guy]

Every company that sold affordable phones did the world a favor.

Using your car analogy, the reason why there's roads everywhere for expensive cars to drive on, is because of all the affordable cars and trucks that made such roads practical and necessary.

Using your affordable analogy the first cellphones were thousands and thousands of dollars. Hardly affordable to the world.
As far as roads go, it was the mass production of automobiles, not the affordability that lead to roads being built. Model T might have been the first affordable mass produced car, but it wasn't long after luxury automobiles were in the mix as well.

Essentially a chicken-egg conversation. If Samsung wanted to do the world a favor it would give away their phones and cell service. That's doing a good deed.

 

[Keirasplace]

Using your affordable analogy the first cellphones were thousands and thousands of dollars. Hardly affordable to the world.
As far as roads go, it was the mass production of automobiles, not the affordability that lead to roads being built. Model T might have been the first affordable mass produced car, but it wasn't long after luxury automobiles were in the mix as well.

Essentially a chicken-egg conversation. If Samsung wanted to do the world a favor it would give away their phones and cell service. That's doing a good deed.

Also, considering the very small numbers of cars that were in service 80 years ago compared to now, it is obvious that roads for cars would be built even if it were only for commercial/strategic reasons and for the rich. That has been the case even in countries with a very low level of car ownership.

Infrastructures get built way before the poorest can use it. Eventually that tech trickles down and gets used. Look at the Internet. When it came to public consciousness in 1994-1995, the infrastructure and the modems to get on them had existed for a long time already. And computers by 1994 were already much much cheaper than even 6-7 years earlier.

For a long time, cell phones were a luxury item. Even in the mid 90s. Yet, those network sure did get built anyway.

 

[viorelgn]

All phones evolve, and Samsung initially also only played in the 3-4" space. Yes, they released the note. Yes, it was successful, but overall the market trend has gradually been seeing an increase from 3, to 4 to 5" and above. And Phablets are still a bit of a niche market.

 

[Max(IT)]

All phones evolve, and Samsung initially also only played in the 3-4" space. Yes, they released the note. Yes, it was successful, but overall the market trend has gradually been seeing an increase from 3, to 4 to 5" and above. And Phablets are still a bit of a niche market.

Well, actually Samsung and LG are selling phablets like high end smartphones ....

 

[furi0usbee]

The only answer is... This wouldn't change my life at all.

Mine either, but will be fun when they do.

 

[Tubamajuba]

Well, this is a fixed report with rigged figures.

Let me guess- if the report showed Samsung trouncing Apple, you'd be quoting from this report religiously.

If it makes you feel better, Samsung doesn't actually release smartphone shipment numbers- so you can just pretend that Samsung outsold Apple 1000 to 1!

 

[Trapezoid]

Well, this is a fixed report with rigged figures.

Whew. I almost believed this report until apolloa dropped the knowledge above.

 

[dec.]

The only answer is... This wouldn't change my life at all.

Nothing that happens on this message board changes the life of anyone including your own or apples. What is your point, if you think you have one?