Q1 2015: Samsung overtakes Apple in smartphone market share

[Achtung!]

To everyone who thinks Samsung is in trouble, only 30% of Samsung Electronics' profits come from mobile phones. Secondly, Samsung Electronics isn't the only subsidiary of Samsung. So all these stories of "Samsung will fall like Nokia and IBM", etc. are invalid. Samsung is the world's largest technology company by revenues, assets and equities.
Apple only beats them in terms of profit, but going for profits only is not a good long-term strategy.

If you've studied business/economics, the best long-term strategy is to diversify the company's product range and portfolio. And Samsung is investing into electric battery technology for the auto industry and autonomous driving technology, which are forecast to become huge markets by 2030.

In fact, Samsung overtook Apple in smartphone market share in Q1 2015 and it seems like this wont reverse, UNLESS Apple sells the same amount or more of their upcoming iPhone 6S compared to the iPhone 6.

Samsung regains smartphone sales crown from Apple
http://www.cnet.com/news/samsung-regains-smartphone-sales-crown-from-apple/

Source: Strategy Analytics
http://www.macrumors.com/2015/04/29/samsung-apple-strategy-analytics-q1-2015/

Source: TomiAhonen Consulting Analysis 25 May 2015, based on manufacturer and industry data
http://www.phonearena.com/news/Top-...icture-Chinese-phone-makers-take-over_id69643

And before you say "Samsung sells more cheaper phones than Apple, that's why", Apple also sells older/cheaper phones like the iPhone 5s and 5c. Samsung's profit margins on their cheaper phones are not that much less than their flagships, so selling more cheaper phones doesn't mean that they're not making much profit out of them.

I think the recent media stories about the Galaxy S6 not selling well is based on false data. Firstly, Samsung didn't even release when the Galaxy S6 reached 10 million sales. It was still within a month. And even if the 10 million sales pace didn't drastically overtake the Galaxy S5, it isn't surprising since the Galaxy S6 released in far less countries than the previous Galaxies.

This means that as Samsung starts to roll out the Galaxy S6 into other countries, particularly those in Europe and Southeast Asia, we will see a different story for the remainder of Q2 and Q3.

Furthermore, Apple's iPhone sales have dropped nearly 40% since Q4 last year, and that was before the Galaxy S6 was released.

 

[elitejp]

AchtungD: just give it a rest man.
I mean I like samsung and their products but your posts are just over the top.

 

[WelshBloke]

AchtungD: just give it a rest man.

Yep. Put the pompoms down and get changed. The cheerleaders outfit doesn't suit you.

 

[Demo24]

AchtungD: just give it a rest man.
I mean I like samsung and their products but your posts are just over the top.

This, I'm not sure what's with the obsessant need to sell Samsung to us, especially versus apple. Most here care about the hardware and software component, not necessarily who made it.

 

[kyrax12]

Isn't Samsung a massively larger company than Apple?

 

[Commodus]

This is a very selective, purposefully misleading interpretation of the data.

Apple outsold Samsung in Q4 because it was the first full quarter where the iPhone 6 and 6 Plus were available, a holiday quarter and the company was satisfying pent-up demand for a larger-screen iPhone from both veterans and switchers. The latter is a trend that may continue through the iPhone 6's lifespan, but that holiday launch spike only ever happens once a year; it just wasn't going to be that good in the following quarter. Citing the Q1 reversal as "proof" that the Glorious Total Samsung Monopoly is back on track is just as short-sighted as Apple fans claiming that Samsung was forever beaten based on the Q4 info.

Also, trends are important. Apple's iPhone shipments in the first calendar quarter of 2015 were up about 40 percent year-over-year; according to Strategy Analytics' estimates, Samsung's cellphone shipments were down 13 percent. You can have larger market share and still be in trouble, folks. In fact, that was precisely the problem that BlackBerry and Nokia had. They were convinced for a couple of years that they didn't really need to take Apple and Google seriously, because there was a period where their market share was stable or even increased despite the rise of the new platforms.

I'd add that the "Apple sells budget phones too" claim is disingenuous. The iPhone line starts at $450 US (though there are one or two countries where it goes a bit lower) -- there are phone makers whose lineups go well below $100, and Samsung's at least gets close to that mark. The truth is that Samsung sells infinitely more low-end phones than Apple, because Apple doesn't really compete in that category. The company may not have the most market share, but yes, it's making billions more in profit.

 

[Commodus]

Isn't Samsung a massively larger company than Apple?

It is, but a large chunk of its revenue stems from mobile. Of the $5.6 billion in Samsung's operating profit during Q1, $2.6 billion of it came from phones. If Samsung quit the phone business, it'd be a much smaller company.

 

[ponyo]

Does Samsung pay you by the number of posts or by number of replies? You're seriously damaging Samsung brand and reputation here. If that is your goal, you're doing a good job. I think I now hate Samsung because of you.

 

[kaerflog]

No need to get your panty in a bunch from the S6 thread.
Samsung is never going to end up like HTC but their hey day of the S3 and S4 is over.
There are too many companies making same quality Android phones at much lower price for Samsung to dominate like they used to.

 

[SAWYER]

This guy either has to be a paid shill or if not, really needs to re-evaluate things in life if he is this obsessed over an electronics company

 

[openwheel]

I may be a bigger fan than Actung these days. I got Samsung Note 3, Samsung French Door Fridge, Samsung gas range and Samsung dish washer.

Almost got Samsung washer and drier too. Instead, we got LGs.

Anyway, since this thread is so popular I figure I'd chime in.

 

[StrangerGuy]

Apple: "Sure, keep that ever-decreasing marketshare of yours while I laugh to the bank with ~90% of profits of the entire smartphone industry."

 

[WelshBloke]

that ever-decreasing marketshare

Wut?

 

[StrangerGuy]

Wut?

YoY. Really, do I even say this?

 

[Artdeco]

Meh, apples and oranges

(And shills)

 

[WelshBloke]

 

[cliftonite]

Who cares.

 

[WelshBloke]

Who cares.

PEOPLE CARE DAMMIT!

It's really, really important that they tell you which company is the bestest and most awesomest company out there.

AND YOU WILL LISTEN YOUNG MAN!

 

[Artdeco]

What I care about is if a device meets my needs, not a fan of Samsung, but I'll buy their products if they work for me, for example, I've had every stinking version of the Note, and 2 of each since the Note 2 since GF is Korean and evidently is required by law to own Samsung phones, LOL. I can't even get her to use an LG phone.

You-all would cringe to see all the malware she installs on her phone, I'm hands off with her shit, but holy mother of god, compared to my daily driver iPhone, it just makes me dizzy to look at her home screen and all the crap on it.

One of my happy places is to do a reset on her phones when it's time for a resale of her used stuff...

 

[cliftonite]

PEOPLE CARE DAMMIT!

It's really, really important that they tell you which company is the bestest and most awesomest company out there.

AND YOU WILL LISTEN YOUNG MAN!

Hah, seriously though I wish people would just buy whatever they like and stop arguing like its the 2nd coming. Its a freaking phone and they all basically do the same thing.

 

[Ichinisan]

Does Samsung pay you by the number of posts or by number of replies? You're seriously damaging Samsung brand and reputation here. If that is your goal, you're doing a good job. I think I now hate Samsung because of you.

:awe:

Backfire...

I thought Samsung was OK, but then they started encouraging the kind of zealotry we see in the OP.

 

[spacejamz]

:awe:

Backfire...

I thought Samsung was OK, but then they started encouraging the kind of zealotry we see in the OP.

Don't really frequent this sub-forum too much but is this thread balanced out by the few anti-Samsung zealots I seem to recall here?

 

[sm625]

Just because millions of people happily give thousands of dollars each to apple as part of some kind of sick ritual doesnt mean that samsung is in trouble. Like most companies, samsung survives just fine without cultish feverish followers.

 

[Ichinisan]

Just because millions of people happily give thousands of dollars each to apple as part of some kind of sick ritual doesnt mean that samsung is in trouble. Like most companies, samsung survives just fine without cultish feverish followers.

You really don't think OP is a "cultish feverish follower?" Really?

 

[Commodus]

:awe:

Backfire...

I thought Samsung was OK, but then they started encouraging the kind of zealotry we see in the OP.

There's always been a degree of irony to Samsung's image. It tries to position itself as the anti-Apple, the brand for people who don't stand in launch lines or put stickers on their cars, but it simultaneously bends over backwards to cultivate that same unthinking loyalty. Generating lines through launch day discounts, astroturfing, ad campaigns that are based on better-than-thou rhetoric, and so on.

Simply put, it's always important to remind yourself that these are just companies out to make money. You can prefer their products, but you don't have to worship them.