Profits

Samsung takes over apple

 

Samsung Galaxy & Apple iphone 5

Look around the bus and look on the train. Does it give you a good sense of what mobile everyone is carrying? Nowadays it is either a Samsung or Apple Smartphone. As for me, I am still with Blackberry. Recent figures are showing Samsung is taking over Apple as the world’s most profitable mobile maker. Samsung has an estimated profit of $5.2 billion in the second quarter of this year beating Apple’s profits of $4.6 billion.

The reason for this is mainly because of the strong demand for Samsung phones particularly in the Latin and Asian markets. Samsung is dominating the phone market with 107. million phones shipped worldwide.

There have been many suggestions for why Apple has fallen behind Samsung. One suggestion has been the prices of the latest iPhone-iPhone 5. There is a healthier demand for the the iPhone 4, which has reduced the selling price of the latest iPhone. Neil Mawston at Strategy Analytics said ‘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’.

To succeed taking over Samsung, Apple will need a strategy in producing budget conscious phones.  According to  Strategy Analytics, Apple’s smartphone market share has fallen from 17% to 13%, whilst Samsung is 33%. Samsung has sold 76 million phones, more than double than Apple. Neil Mawston said ‘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’.

Stay Blessed

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