Smartphone smarts: Apple vs Samsung

Tuesday, 7 October, 2014

Gartner: “Worldwide sales of smartphones totaled 968 million devices in 2013, an increase of 42.3 percent over a 12 month period. Perhaps most significantly, sales of smartphones made up almost 54 percent of overall mobile phone sales in 2013, and outnumbered annual sales of feature phones for the first time.”

Meanwhile, “Samsung Warns of Lower Third-Quarter Earnings.” What gives? Re/code: “The South Korean electronics giant said that while smartphone shipments increased, its operating margins fell because of higher marketing costs, fewer shipments of high-end phones and a lower average selling price for the devices.”

And how are the South Koreans reacting? “The company said it is responding with a new smartphone lineup that will include new mid-range and low-end devices, which would make Samsung’s products more competitive in markets such as China.” As commentator jameskatt points out, “The problem for Samsung is that there is NO profit in the low end of the market. Samsung is also being outcompeted in the low end by Asian tigers such as Xiaomi who don’t care much for profits. They are willing to live in razor thin profit margins and even more than Samsung, copy Apple slavishly.”

Apple wins. And it’s looking good in China, too.

Filed in: Apple

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