Samsung takes ‘most profitable handset vendor’ title from Apple

Samsung smartphones forge ahead as Apple slides slightly backwards in 2nd quarter Photo: Samsung

COPPERAS COVE, Texas, July 27, 2013 —  According to the latest research report from Strategy Analytics’ Wireless Device Strategies service, Samsung continued to dominate Apple in smartphones shipped, by shipping 2.4 times more smartphones worldwide than Apple in the second quarter 2013. This is up from having shipped 1.9 times more in the first quarter.

By more than doubling the 31.2 million smartphones sold by Apple in the same period, Strategy Analytics estimates that Samsung sold 76 million smartphones in the second quarter 2013, and took a healthy 33% share of the global smartphone market. Although Apple still holds second place with a 13.6% share, its 2nd quarter sales represent a slip from last year’s 16.6%.


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Apple, which recorded an estimated iPhone operating profit of 4.6 billion dollars, has reigned for almost four years as the world’s most profitable handset vendor. However, if Strategy Analytics’ estimates are correct, Samsung, with strong volumes, high wholesale prices, tight cost controls, and a 2nd quarter 2013 profit of 5.2 billion dollars, has for the first time, overtaken Apple, and taken its crown.

While Samsung has consistently performed well worldwide, tougher competition, and lackluster iPhone 5 sales have caused Apple’s profit margin for its handset division to fade and the company is now under intense pressure to launch more iPhone models at cheaper price-points or with larger screens to fend off the surging competition.


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Derek Crockett

Derek Crockett is a retired Engineering Technician with a love for technology, and industry experience ranging from the production of printed wire boards to the manufacture of semi-conductor production tools. Derek is a resident of Copperas Cove, Texas, and has worked for many of the world’s leading technology companies such as Solectron, Samsung, AMD, and Applied Materials. He now writes technology related news articles and reviews at tekknotes.com

 

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