Thursday, August 2, 2012

Samsung Maintains Top-Dog Position in Smartphones, Can Apple Inc. (NASDAQ:AAPL) Match Up?

Samsung Electronics maintained its leadership position in the smartphone segment, shipping more than 50 million units in the second quarter of 2012, almost double that of Apple Inc.’s (NASDAQ:AAPL) sales figures from Strategic Analytics revealed.

In the previous quarter Samsung had sold 44.5 million phones, much ahead of Apple's 35 million iPhones sold in the same quarter.

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Following up on the success of its Galaxy SII phones released in June 2011, Samsung's Galaxy SIII has cemented its dominance in the smartphone segment, supplanting the iPhone completely. The new Galaxy sold 10million sold in less than two months of it launch.

Powered by Google’s flexible Android operating system, with its numerous user-friendly applications, Samsung's Galaxy range have garnered for the Korean consumer electronics firm.

However while Samsung has taken giant strides in the smartphone market, most of its gains have come at the expense of Research in Motion and Nokia, with Apple's iPhones ceding a mere 1 percent of its market share. The Galaxy SIII also has the advantage of being relatively newer compared to the iPhone 4S which was launched last year.

Apple is betting everything on the new iPhone scheduled for launch in mid-September and according to tech analysts would have a superior user experience compared to the current version.

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Buyers may also be postponing purchase of the existing iPhones in anticipation of new one later in the year, testified to by lower unit price realisations of the iPhone in the last quarter, squeezing margins. This may well be the story in the next quarter as well.

Last month Apple's Tim Cook had said emerging markets, especially China, hold out huge opportunities for the company's products now that carriers there are transitioning to 3G from 2G now.

China has the potential to immediately double its market share in a short time.

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