Samsung Widens Gap Over Apple in Worldwide Smartphone Market

[LordVic]

Problem is, profits from Samsung's mobile division have been falling for a couple or more years in a row.

Eventually they won't be able to support this loss, and my guess is they will start ditching their low-end phones and focus entirely in their high-end ones, since this will make them able to cut employees and reduce operating cost in general.

Very valid concerns that as consumer would affect you.

But my point still stands. Whats the point of then turning around and screaming "BUT APPLE MAKES THE MOST PROFIT!". it's completely. irrelevant. This artcile for example isn't about profit. it's about volume of sales. Thats it. Nothing else can be determined from it. So the nutters who have all yelled about Apple profits are bringing in logical fallacies.

Profit of a company only matters to the company. Thats it. Apple making record profits has absolutely ZERO impact on Samsung's financial problems. Equating them, and attempting to attack, insult or belittle users of Samsung Devices because Apple has insane profits is absolutely moronic.

 

[PaulRustad007]

So Apple has basically 2 models that sells 75+ million.....Samsung, what, 100 different models?

 

[tooltalk]

Lots of reports, Google search is your best friend.

If there are lots of such reports, why don't you just cite one? I found no report supporting such claim on Google. Most "Google search" dating 2014 or earlier however report that about slightly less than half of all Samsung smartphones are premium phones such as Galaxy, not their low end.

 

[HarryPot]

But whats happening:
Apple makes 50 Billion in profit. Does not significantly change costs in future years. Takes 45 bILLION of that and puts it in the banks. and distributes 5 billion to a few dozen people.

Does THAT make you feel better that 45% of that device you spent is going towards that? Does that benefit YOU as a Apple fan? Even Fanboys should be looking at that profiteering questionably. Apple could afford to drop prices by 20% and still be raking in billions in profit, that far exceeds future growth plans, AND cost predictions.

You do realize that the Net Profit Margin for Apple is around 20%?

 

[igorsky]

Gotta love all the people talking about profit, and how happy they are to report Apple's AMAZING profit margins. In other words, they are saying, "Hey everyone, look at me, I love paying Apple more money for cheaper inferior hardware. And I'll even brag about it for Apple."
Truly sad indeed. Saddest part is that blind loyal customers like this, do the most damage to advancing consumer products. Just no need for the manufacturer to innovate product after product because you're so willing to grab your ankles.

Truly sad is that while writing this condescending post you didn't once think of the possibility that many Apple fans are both users AND shareholders, and that they get to enjoy BOTH their great products and their AMAZING profit margins.

 

[American Hero]

Most of the world does not have "subsidized" phones. They must pay full price.

Samsung has Android phones that retail for around $125 dollars around the world. Are you telling me those aren't their volume sellers?

The average selling price (ASP) for Samsung smartphones was under $300 this past summer. It's probably lower now. And Android as a whole has ASPs descending towards $200.

Meanwhile... the ASP for iPhones is around $670

So yes... I'd say Samsung sells a lot of "low end" smartphones.

The point is... the majority of Samsung's 80 million smartphones last quarter were not $600 flagship Galaxy S models. If they were... we would have heard about it.

I was talking strictly in America.

 

[69Mustang]

Samsung and others report *shipments* as in, it left the factory. Apple reports *sales*, as in, it was sold to a customer and actually activated. Big difference.

Stop it. You've been around this site long enough to know that's not true on several levels.
1. Samsung doesn't report anything on these analyst estimations.

2. Shipped does not mean it left the factory. Shipped means in possession of the distribution partner, as in WalMart, Best Buy, Telcos, etc.

3. In Apple parlance, shipped and sold mean the same thing. "The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Product is considered delivered to the customer once it has been shipped and title and risk of loss have been transferred. For most of the Company’s product sales, these criteria are met at the time the product is shipped. For online sales to individuals, for some sales to education customers in the U.S., and for certain other sales, the Company defers revenue until the customer receives the product because the Company retains a portion of the risk of loss on these sales during transit."

 

[Michael Scrip]

I was talking strictly in America.

This article is about WORLDWIDE smartphone sales though.

 

[lkrupp]

Disappointing. As much as a blatant copycat firm they are, I do not believe they should be enjoying the success they have been experiencing.

I hate it when cheaters win.

Define “win.” More units sold or more money made? Volume or quality? Sheer numbers or customer satisfaction? By those three qualifiers alone Apple wins and Samsung loses. What’s you point again?

 

[hiroden]

Number of phone sold are just numbers. Net profit is the key and Apple is making a lot of that and more annually. Obviously, Apple needs to keep innovating and making new great products... or that net profit will not grow. The iPhone 6s didn't sell as much as predicted (but still pretty good!) yet iPhone 7 should be the real test for Apple.

 

[MuppetGate]

Apple is doomed.
C'mon Timmy, you can do better.
Knew removing headphone jack would cause problems.
Bye bye Apple stock.
Apple needs to break off its partnership with Samsung.
Steve Jobs wouldn't have allowed this.
Jony is obsessed with thinness instead of bigger battery.
Beats are crappy headphones.
OLED is better than LCD.
OLED has burn-in problems.
iPhone 5s was the best design.
Antenna bands are ugly.
1GB of ram isn't enough.
16GB base model is stupid.
5400 RPM spinning drive is stupid.
T-Mobile is disrupting the industry.

Have I forgotten anything?

Nope. I think you've pretty much covered it.

 

[lenard]

That number will go up even higher this year once Apple removes the headphone jack from the iPhone 7.

Basically selling a lot of stuff, but not making any profit..thats the key of the story..

market share or profit, which would you choose to survive..

 

[KdParker]

What difference does that make? Someone is paying for the phones, either the consumer or the carrier. The numbers are the same.
[doublepost=1454001863][/doublepost]
Yes, your precious iPhone is the Rolls Royce of phones. Just as a RR is a ripoff in cars...

Checked the prices of iPhones vs. Samsung's leading phones lately? About the same.

True, but your can't deny that if you compared iPhone 6s to (Samsung's leading phone) there wouldn't be any contest.

 

[HarryPot]

Profit of a company only matters to the company. Thats it. Apple making record profits has absolutely ZERO impact on Samsung's financial problems. Equating them, and attempting to attack, insult or belittle users of Samsung Devices because Apple has insane profits is absolutely moronic.

I get your point, but I partially disagree.

The higher profits makes Apple a more solid company (sitting in more than $200B of dollars), and also lets them offer a better support and quality assurance.

When you invest in something, this is something that many people take into account. Maybe a smartphone is not a critical part in most people lives. But imagine it were, would you invest in a brand you are not sure would survive in the long term and offers a lesser support?

See it from an enterprise point of view, you need to buy your employees smartphones, it's going to cost you millions of dollars buying them, and then you need to support them. And changing later on to another brand would represent a big cost for the company.
Do you buy the one that maybe initially is going to cost more but is sure is going to stay for the long run and offer better support?

It's not about attacking Samsung, at least not for me. But about seeing both companies and thinking that the way Apple does things seem to be a better long-term strategy.

 

[hiroden]

Nope. I think you've pretty much covered it.

Beats are not crappy headphones... just overpriced. The newer Beats are better in terms of quality but still not worth the $200.

 

[Tech198]

That number will go up even higher this year once Apple removes the headphone jack from the iPhone 7.

I guess... u won't think the removal of ports would play a part here, but i then again, maybe not..... People just want the latest, even if i have to buy an adapter i'll still get it with a slight inconvenience. since performance is higher factor.

Samsung takes the lead

 

[flottenheimer]

Remembering when Steve Jobs announced that Apple's goal would be to capture 1% of the global smartphone market.
In 2008 they reached 1.1%

What an amazing ride it has been and still is.

Branding wise, Apple has always been a challenger brand. It suits their brand and their self-understanding better to be second.

 

[Sefstah]

iPhone users leaving for this reason is kind of like the weakest antelope getting eaten at the end of the pack...evolution's way of shaking out those who can't adapt.

By "adapt" do you mean "spend more money" on unnecessary Apple proprietary headphones, adapters or Bluetooth headphones that don't sound as good as a wired connection?

 

[thekeyring]

Impressive. But no one is suggesting the S6/Edge and Note 5 outsold the iPhone are they?

 

[8692574]

Not always. Sometimes they're funny.

No they are not ....thrust me, and if someone tells you they are, they are lying and don't want to hurt your feeling.

They might have been funny the very first time, but I am not even sure about that.

On topic, as someone else posted selling more does not mean making more money, sometimes is better to sell "less" but enjoy a better income, after all once you are at the top there is only one way you can go, and Apple right now can go either down or UP!!!

 

[nj-mac-user]

A much better comparison would've been iPhone sales compared to Samsung GS5/GS6 sales. Everyone knows Samsung sells well in the cheap/low-end smartphone market, models not even worth mentioning.

 

[Wiesenlooser]

Am I Dumb? Didnt the gap get smaller?

 

[BruceEBonus]

This year will be make or break for Samsung. If they want to capitalise on Apples innovation-intertia and make the public realise such they will HAVE to bring out a big game changer feature. Nothing daft and gimmicky like lightning connectors, 3D touch etc and live photos which nobody wanted .... But actual usable features. The iPhone led the way with stuff like iMessage. FaceTime. App Store. Simple and intuitive interface. Smart metal design (the 4 series). ICloud. It just kept coming. Then. Too many Cooks and the broth was spoiled. Now as Apple treads water on the features front and just upgrades and resizes the old stuff .... This is when they must strike. The S7 should be announced very soon indeed. If they 'do a Cook' and make a silly S6se mini Edge then like eating a tin of alphabet soup it will spell disaster if it doesn't come out right! Get it right and the servile hordes might wake up from their stupors and realise there IS an IOS counterpart. Get it wrong and they'll pay big time .... Like the general phone buying public then!

 

[69Mustang]

Am I Dumb? Didnt the gap get smaller?

Marketshare % got wider YOY for the quarter.

A much better comparison would've been iPhone sales compared to Samsung GS5/GS6 sales. Everyone knows Samsung sells well in the cheap/low-end smartphone market, models not even worth mentioning.

A much better comparison how and for whom? Forum members. The analytics firms really don't release these reports for our consumption. They're trying to drum up subscribers

 

[doelcm82]

No they are not ....thrust me, and if someone tells you they are, they are lying and don't want to hurt your feeling.

They might have been funny the very first time, but I am not even sure about that.

On topic, as someone else posted selling more does not mean making more money, sometimes is better to sell "less" but enjoy a better income, after all once you are at the top there is only one way you can go, and Apple right now can go either down or UP!!!

I got a smile out of that list. So I certainly can't trust you on the matter.