Earlier this week, Apple announced that its Smartphones sales are continuing to rise. The growth of phone sales is around 6.6% or 37.4 million sales in the previous quarter. Truly, this is good news. ABI Research may have revealed that Apple and Samsung both garner around 90% of the Smartphone market in June last year. However, the figures of Samsung Smartphone sales have turned the tables.
More Figures From Samsung
According to an IDC report, Samsung’s sales jumped from 60 million to 70.7 million phone sales over the same quarter. These huge phone sales may be due to the release of Samsung’s flagship Smartphone — the Galaxy S III. It can be credited as the catalyst for the boost in Samsung’s phone sales. The figure beats Apple! It is even more than the sales of Apple and other three largest competitors combined! Among the top five Smartphone companies in terms of volume, Apple is the only company which lost its market share over the previous year.
Reason for Apple’s Market Share Loss
Apple can still remain in healthy profitable margins even they are not healthy like they used to be. The iPhone is indeed a high-end device but quantity matters too. Samsung still beats phone sales by selling even cheaper models along with flagship offerings. Apple may just be too focused on catching the attention of application developers. They are not competing with customers. If this scenario continues, Samsung’s market share may soon double than Apple’s. Consequently, most application developers will now question why they have to build two applications for different operating systems when one is clearly dominating the market share. Apple will be left out by many application developers.
Hope for Apple Against Samsung
There is still hope for Apple to make a good comeback. IPhone users utilize their phone more heavily than their Android competitors. In a Yankee Group survey, it was found out that iPhone customers are considerably more loyal to the brand than other Android device owners. Thus, this loyalty can open the door for Apple to make a good comeback through a right product. The Wall Street Journal also currently reported that Apple is working already on less expensive iPhones. They could even launch late this year. This may be the right move for Apple. This move shows that Apple is not the single agenda-setter any longer in the smart phone market. This is the first time the company is doing a catch-up.