“Samsung Electronics Co. increased its share of the global smartphone market in the second quarter, widening its lead over Apple Inc. as the South Korean technology giant shipped more than 50 million smartphones, the largest number of units ever shipped by any vendor in a single quarter, according to two market research firms,” Juro Osawa reports for The Wall Street Journal. “The reports from research firms IDC and Strategy Analytics showed that Samsung, the world’s largest smartphone vendor, gained a larger market share in the second quarter compared with the previous quarter, while Apple’s market share declined with some consumers holding off iPhone purchases ahead of the expected release of the next model later this year.”
Osawa reports, “The reports indicate that Samsung’s strategy to sell smartphones in a broad price range from high-end models to more affordable ones, combined with its aggressive marketing campaigns, has been helping the South Korean company enhance its global market presence. By contrast, Apple only sells iPhones, focusing on the high-end segment.”
“U.S.-based IDC estimated Samsung’s global smartphone shipments in the second quarter at 50.2 million units with a market share of 32.6%. In the first quarter, Samsung held a 29.1% share with 42.2 million smartphones shipped, IDC said. Earlier this week, Apple said it sold 26 million iPhones in the quarter ended June. According to IDC, Apple’s market share declined to 16.9% in the quarter from 24.2% in the previous quarter,” Osawa reports. “Similarly, London-based Strategy Analytics estimated Samsung’s second-quarter smartphone shipments at 50.5 million units, with a market share of 34.6%, topping Apple’s 17.8%. That marked a widening gap from the first quarter, when Samsung held a 30.6% share while Apple had 24.1%.”
“The reports from IDC and Strategy Analytics also highlighted Nokia Corp.’s struggle to establish its position in the smartphone market,” Osawa reports. “The [company] saw its share of the global smartphone market drop to 6.6% in the second quarter from 8.2% in the first quarter, according to the IDC report. In the second quarter of 2011, Nokia held a 15.4% share, IDC said.”
Read more in the full article here.
MacDailyNews Take: Crime pays, as Samsung’s dear leader, obviously knows.
Unfortunately for Samsung, ripping off the innovator does not pay nearly as well as being the innovator; market share in the smartphone market does not equal profit share. Unending “Buy One, Get Up to Five Free” promotions have their drawbacks: Big unit numbers, not so big share of the available profits.
May the world’s courts someday wake up and dole out some justice for a change. Until then, Apple should do everything in their power to punish Samsung by sourcing their components elsewhere wherever possible.
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