Samsung Is Now The Most Profitable Handset Company

Posted Jul 26, 2013

Strategy Analytics is reporting that Samsung is now the world’s most profitable handset company as of Q2 2013.  Apple is now in second place due to a slowdown in demand for iPhones.

“We estimate Samsung’s operating profit for its handset division stood at US$5.2 billion in the second quarter of 2013. Samsung overtook Apple for the first time, which recorded an estimated iPhone operating profit of US$4.6 billion. With strong volumes, high wholesale prices and tight cost controls, Samsung has finally succeeded in becoming the handset industry’s largest and most profitable vendor,” stated Strategy Analytics senior analyst Neil Shah.

Apple’s marketshare for Q2 2013 has dropped to the lowest level in four years, according to data released by ABI Research today.  Apple had a 13.1% marketshare worldwide, which is down from 16.6% one year ago.  This is the lowest level they had since Q3 2009, which is two years after the launch of the first iPhone.  LG of Korea ranks at number 3 and Lenovo ranks at number 4.

“Apple’s reign as the world’s most profitable handset vendor lasted almost four years, from Q3 2009 to Q1 2013. Apple’s profit margin for its handset division has been fading recently due to lackluster iPhone 5 volumes and tougher competition from rivals. Samsung is performing well in the US market, while Huawei, ZTE and other local brands are growing vigorously in China. Apple is now under intense pressure to launch more iPhone models at cheaper price-points or with larger screens to fend off the surging competition and recapture lost profits in the second half of 2013,” added Strategy Analytics executive director Neil Mawston.

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