Apple is killing Samsung in China

“Despite introducing the Galaxy S6 and S6 Edge, Samsung appears to have failed to reverse its smartphone market share declines in 2015 Q2,” Mark Hibben writes for Seeking Alpha. “Meanwhile, Apple is on track to post about a 40% y/y unit sales gain for iPhone. Samsung’s recent guidance indicates an 8% y/y decline in revenue, while Apple’s revenue for the June quarter may increase by about 30%. The different trajectories of these companies can be explained by their sales performance in China.”

“In calendar Q1, Apple’s revenue for Greater China grew by 71% year-over-year to $16.8 billion. The sales growth in China accounted for over 56% of Apple’s total revenue growth for the quarter,” Hibben writes. “Based on the expectations of prominent Apple analysts such as Katy Huberty and Steve Milunovich, Apple is likely to post another extraordinarily strong quarter. Expectations are for iPhone unit sales of better than 50 million and total revenue of about $48 billion.”

“Clearly Apple is on a totally different trajectory than Samsung, with iPhone unit sales up over 40% y/y and total revenue up by over 28%, if these expectations are met,” Hibben writes. “The contrasting trajectories of Apple and Samsung I still believe speak to the fundamental business advantages of the Apple iOS ecosystem. As I and many others have pointed out, there’s a fundamental difference in profitability between iOS and Android that Android phone makers have difficulty coping with. I’ve argued that this difference in profitability gives Apple a competitive advantage in that it can invest so much more in making its ecosystem more appealing to consumers”

Read more in the full article here.

MacDailyNews Take: The worse things get for Samsung, the more we believe in karma.

ESAD, Samsung. ESAD.

Struggling Samsung’s profit falls for seventh consecutive quarter – July 6, 2015
Investors lower Samsung expectations amid Galaxy S6 sales doubts – July 6, 2015
Lower than expected Galaxy S6 sales fail to drag struggling Samsung back into profitability – July 1, 2015
Apple’s indomitable iPhone 6/Plus sales unfazed by Samsung’s anemic Galaxy S6/Edge – June 2, 2015
iPhone 6, killer: Beleaguered Samsung’s Galaxy S6 sales are a total disaster – May 22, 2015
Beleaguered Samsung reports 30 percent decline in operating profit – April 28, 2015
Samsung Galaxy S6 phones suffer weaker than expected sales in South Korea homeland – April 22, 2015
15 percent of Samsung Electronics execs quit amid profit slump – April 2, 2015
Significant Android to iPhone switching weakens market for Samsung Galaxy S6 – March 24, 2015
Apple iPhone takes smartphone market share from Android around the world – March 4, 2015
Poor man’s iPhone: Android on the decline – February 26, 2015


  1. But…But….But….ShameScam has marketshare!!!!! Wonder how long until ScamSkunk phone profits dip into the millions? On the way to Oblivion and beyond!!! ScamSkunk new discount strategy: Get the first phone free, and two for the price of one. (Got to keep that marketshare! 🖖😀⌚️

    1. Wall Street still prefers high market share as the most important metric. Apple is getting totally thrashed by Wall Street for not having high market share. Anyone can see that much. It’s great for Apple as long as the revenue and profits continue to pour in. It’s only hurting Apple shareholders who are getting seriously smacked around even as Apple gets stronger.

      It doesn’t matter if Samsung slashes prices or offers incentives. That only moves inventory and doesn’t improve profitability at all. Market share without profitability is a terrible business model and I can’t understand why it’s considered praiseworthy by Wall Street.

      1. It doesn’t hurt Apple stockholders who buy and hold.

        As a matter of fact it’s good for them. They can buy cheap now while Apple is undervalued, and when Samesung finally crashes and burns, the true value of Apple will rebound making the Apple Stockholders very rich.

        1. If only that were true.

          But looking at past history of Wall St. vs. Apple… if it’s not Scamsung, it’s someone else. Look at Apple’s history: first it was MS in the 90’s… then Google/Android in the 2000’s, now Scamsung… even if Scamsung crashes and burns in the mobile handset division, Wall St. and the so-called ANALysts will find someone else who will be the next “Apple-killer”.

  2. If I wasn’t looking at China through the lenses of an Apple fanboy, I might be one of those Americans who view their rise with a mix of skepticism, fear and loathing. But if this is a sign of things to come then maybe sharing the global crown with them won’t be so bad after all. They appear to have good taste.

  3. Samsung in China ought to be the least of Apple’s concerns. Current Chinese stock market plunge may have a substantial impact (at least the short term) on Apple’s overseas sales/revenue. Stock is already down today 2%.

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