Samsung overtakes Apple to become world’s most profitable smartphone maker

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The global smartphone market showed wholesome boom in the 2d quarter, but Apple’s iPhone was squeezed via competitors from Samsung and different Asian manufacturers, surveys showed Friday.

Apple’s share of the worldwide smartphone market fell to 13.1 % within the April-June length, in line with analysis agency IDC. A separate report by strategy Analytics gave Apple thirteen.6 p.c, but mentioned that it was once the united states agency’s lowest share for the reason that 2010.

Samsung extended its dominance, taking pictures virtually one-0.33 of all smartphones offered worldwide, in step with the surveys, while South Korea’s LG and China’s Lenovo and ZTE showed accelerating growth.

Neil Mawston, government director at technique Analytics, stated Apple is being squeezed on each the excessive and low ends of the smartphone market, via manufacturers the usage of the free Google Android working system.

“Apple is susceptible to being trapped in a pincer motion between rival three-inch Android fashions on the low-finish and 5-inch Android models at the high-finish,” he stated.

Mawston stated Samsung gross sales grew fifty six % from a yr in the past to seventy six million smartphones, while Apple’s boom used to be simply 20 percent, less than half the trade percent of 47 %.

Technique Analytics stated Apple was once not best crushed on gross sales, but overtaken with the aid of Samsung as the world’s most profitable smartphone maker.

The analysis team mentioned Samsung’s running profit for its handset division was $5.2 billion within the second quarter of 2013 to $four.6 billion for Apple.

“Apple’s reign as the arena’s most successful handset dealer lasted almost 4 years,” Mawston mentioned.

“Apple’s revenue margin for its handset division has been fading lately due to lackluster iPhone 5 volumes and more difficult competitors from rivals. Samsung is performing smartly in the us market, whereas Huawei, ZTE and other local manufacturers are rising vigorously in China.

 

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“Apple is now below extreme force to launch extra iPhone models at more cost effective value-points or with greater displays to fend off the surging competitors.”

Ramon Llamas at IDC said Apple’s gross sales appeared to were damage by way of folks ready for brand new iPhone models in the 2nd half of of the yr. He anticipated the California agency will soar again.

“This is the cyclicality of Apple,” Llamas stated. “by means of September or October we will see a brand new iPhone and unit sales are going to move through the roof again.”

He mentioned Apple did higher than anticipated previously quarter with gross sales of 31 million iPhones, because it introduced carriers in the usa and different markets.

“There’s nonetheless demand. they are still adding operators,” he stated. “i’m beautiful affected person with Apple.”

IDC’s figures showed 52 p.c increase in smartphones with shipments totalling 237.9 million. It confirmed Samsung on prime with 30.4% to 13.1% for Apple, with LG 0.33 at 5.1 p.c, adopted via Lenovo (4.7 p.c) and ZTE (four.2 percent).

Technique Analytics said increase used to be forty seven % annually to 230 million units. Its survey gave Samsung 33.1 % to 13.6 % for Apple, with LG at 5.3 percent, ZTE and 5.zero p.c and chinese maker Huawei in fifth location at four.eight %.

The reports integrated no breakdown of smartphones through operating gadget, however prompt Android made further positive factors, after retaining some 75 % of the market past in the yr.

Llamas stated BlackBerry, which noticed its share cut back to a few three percent earlier this yr, “continues to be in relaunch mode” and has yet to provide you with “a deeper and broader portfolio.”

He mentioned that windows telephone gross sales are picking up, with Nokia’s Lumia – a very powerful brand the usage of the Microsoft working system – exhibiting some beneficial properties with around seven million gadgets bought.

“That’s still small, but it surely’s a step in the proper course,” he stated.

Author: Rohit Shetty

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