Samsung Beats Apple In Smartphone Sales - InformationWeek

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08:35 AM

Samsung Beats Apple In Smartphone Sales

Samsung shipped 28 million smartphones in its most recent quarter, easily sailing past sales of the Apple iPhone.

Samsung reported its quarterly earnings this week and revealed some amazing growth from the company's smartphone business. Year-over-year, Samsung quadrupled the number of smartphones it has sold from 7 million to a whopping 28 million.

Samsung's smartphone business is expanding at an intense rate. Earlier this month, Samsung announced that it has shipped more than 30 million Galaxy smartphones since the phones started selling in June 2010. Samsung's Galaxy smartphones are a family of devices that run Google's Android platform. Some of the Galaxy handsets include the Galaxy S, Galaxy S II, Galaxy S II Epic 4G Touch, and others. They are sold by virtually all carriers in most markets around the world.

Samsung's third-quarter smartphone sales eclipsed Apple's, which sold 17 million iPhones in its most recent quarter. Samsung outpaced Apple by more than 50% with its 28 million phones sold.

The new numbers show that Samsung holds about 23.8% of the worldwide smartphone market. Apple and Nokia--which is still the world's largest producer of cellphones overall--both lost share to Samsung. Apple's share dropped from 17.4% to 14.6%, and Nokia's share plunged from 32.7% to 14.4%.

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Apple blamed its slower quarterly iPhone sales on "media speculation" about the iPhone 5 and the three-month delay in bringing the iPhone 4S to market. Clearly, consumers were waiting for a new iPhone. Apple sold a stunning 4 million iPhone 4S devices during its opening weekend of sales, and the phone remains a hot seller.

Nokia's share of the market fell because it hasn't brought any new smartphones to market. While it shipped several Symbian-based devices and the MeeGo-powered N9, the company has been transitioning from Symbian and MeeGo smartphones to Windows Phone smartphones. Nokia announced its first Windows Phone devices, the Lumia 800 and Lumia 710, this week at an event in London. Both go on sale in Europe later this year.

Samsung's telecommunications business accounted for 36% of the company's total revenue. Samsung also makes laptops, computers, televisions, processors, memory chips, display panels, and other consumer electronics. Samsung made a net profit of $3.11 billion for the quarter.

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User Rank: Apprentice
10/30/2011 | 6:00:23 PM
re: Samsung Beats Apple In Smartphone Sales
Samsung doesn't have direct sales, they use sales channels to get their products to retailers. They don't have access to retailer's sales figures so they can't accurately measure number of sales.
User Rank: Apprentice
10/28/2011 | 8:49:34 PM
re: Samsung Beats Apple In Smartphone Sales
This certainly demonstrates Samsung's success, which is well-deserved. Their devices truly are beautiful, well made, and solid solid performers. It doesn't hurt that Android is a fan favorite, but you don't see HTC or Motorola posting those kinds of numbers. Congratulations Samsung.

But in practical terms, this specific comparision is rather meaningless. Samsung manufactures a whole line of products--you listed half a dozen--that are continually and randomly refreshed amd that are available from every carrier large and small. Apple makes one new device every 12 to 18 months; in the process it ages the last one or two devices but keeps them in the pipeline as low-end alternatives. In Q3 it was available only from Verizon and AT&T. Everyone knew that the next iPhone was imminent; those ready to switch waited-as they always do-with a view to getting the newest toy or of getting a deal on the iPhone 4. So let's see the a comparison in Q4 when iPhone sales spike for the new model, or even more realistic in Q1 of '12.

Here's another thing: Windows 7.5 Mango is a truly great product. It may go the way of the Zune but it may not. If it hits, it's not clear who will lose more, Android or Apple. So there's really only one point to be made here: Apple started a revolution with the iPhone. Now everyone is on the bandwagon. It's market share is shrinking. Well duh! Given Apple's excellent margins and the fact that there are still new Jobsian iniatives in the pipeline they are not worried about this. They are looking at the next new thing and making plenty of $$ on the current new thing.

User Rank: Apprentice
10/28/2011 | 5:40:05 PM
re: Samsung Beats Apple In Smartphone Sales
You've perfectly echoed my second thought.

My first was, "there seems to be a convenient lack of any comparison between the companies' revenues or profits here, which would tell a completely different story."
User Rank: Apprentice
10/28/2011 | 5:06:24 PM
re: Samsung Beats Apple In Smartphone Sales
Apple GǣsoldGǥ 17 million iPhones and Samsung GǣshippedGǥ some number that Strategy Analytics pulled out of their ass.

You cannot compare shipped numbers to sold numbers and come up with a conclusion that one company is beating another. You canGt. A research firm should know that, and IGm sure they do.

I have no doubt that Samsung sold a lot of phones, but until they release actual figures on the number they sold, Strategy Analytics report is meaningless.
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