Apple has emerged as the number one player in the smart phones industry by capturing 53% of the market share profit. Samsung mobile stood at number two with 50% of the profit. But the data suggested that it was not as rosy situation for Apple as it was in the previous quarter where it took 59% of the smart phones profit and 69% for 2012.
On the contrary, Samsung mobile has experienced constant growth in its share and it increased from 34% in 2012 to 43% by first quarter of 2013. By the second quarter, Samsung was able to take 50% of the profit of the smart phone market. Hence, the two companies have taken 100% of the share of profit of smart phones industry as all other companies are either at breakeven point or making losses. Nokia, HTC, Sony Ericcson and LG all had zero share of profit, which was still better than Blackberry that stood at negative one and Motorola that stood at negative 2.
In terms of Revenue, Samsung had surpassed Apple in the first quarter of this year. Samsung mobile brought in $23.3 billion in sale for the first quarter whereas Apple had sale of $22.95 billion in the corresponding quarter. Nokia had $3.64 billion in sales while LG had $2.95 billion in sale. Samsung is not extremely optimistic in its outlook for the coming years as it is apprehensive about the current economic scenario the world over. Although the company doesn't give exact figures of smart phones it ships out, but according to estimation, it shipped out a total of 68 million phones for the quarter. Although the market is saturating for smart phones, the company has been able to experience growth. The situation is a bit tricky in China where the company was able to sell a great number of sets but it didn't translate into the anticipated revenue. The fierce competition in the market is causing the company to reduce its prices in China. Although it has been able to sell record number of units, it didn't translate into revenue as the prices for the phones have depressed.
But both Apple and Samsung might not enjoy the same growth as they did in the in the previous years. Although Galaxy S4 has sold a great number of sets, it has fallen short of few analysts' anticipation. One has to account for promotional events and the marketing costs that these companies are paying to generate sales for their products. The share price for both the giants continue to tumble as investors believe that the great growth is behind them and now the companies will grow at an ordinary rate. Since there are a limited number of users for high end market, the situation looks saturated. The lower end price segment will experience the future growth and both the big giants do not have strong presence in that segment. Chinese brands are quickly positioning themselves as the dominant players in that segment of the market.
On the contrary, Samsung mobile has experienced constant growth in its share and it increased from 34% in 2012 to 43% by first quarter of 2013. By the second quarter, Samsung was able to take 50% of the profit of the smart phone market. Hence, the two companies have taken 100% of the share of profit of smart phones industry as all other companies are either at breakeven point or making losses. Nokia, HTC, Sony Ericcson and LG all had zero share of profit, which was still better than Blackberry that stood at negative one and Motorola that stood at negative 2.
In terms of Revenue, Samsung had surpassed Apple in the first quarter of this year. Samsung mobile brought in $23.3 billion in sale for the first quarter whereas Apple had sale of $22.95 billion in the corresponding quarter. Nokia had $3.64 billion in sales while LG had $2.95 billion in sale. Samsung is not extremely optimistic in its outlook for the coming years as it is apprehensive about the current economic scenario the world over. Although the company doesn't give exact figures of smart phones it ships out, but according to estimation, it shipped out a total of 68 million phones for the quarter. Although the market is saturating for smart phones, the company has been able to experience growth. The situation is a bit tricky in China where the company was able to sell a great number of sets but it didn't translate into the anticipated revenue. The fierce competition in the market is causing the company to reduce its prices in China. Although it has been able to sell record number of units, it didn't translate into revenue as the prices for the phones have depressed.
But both Apple and Samsung might not enjoy the same growth as they did in the in the previous years. Although Galaxy S4 has sold a great number of sets, it has fallen short of few analysts' anticipation. One has to account for promotional events and the marketing costs that these companies are paying to generate sales for their products. The share price for both the giants continue to tumble as investors believe that the great growth is behind them and now the companies will grow at an ordinary rate. Since there are a limited number of users for high end market, the situation looks saturated. The lower end price segment will experience the future growth and both the big giants do not have strong presence in that segment. Chinese brands are quickly positioning themselves as the dominant players in that segment of the market.
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