Samsung takes more smartphone market share from Apple

Fri Apr 26, 2013 2:10am EDT

A motorcycle dispatch rider uses his smartphone next to an advertisement promoting Samsung Electronics Co Ltd's latest flagship smartphone Galaxy S4 at the company's headquarters in Seoul April 25, 2013. REUTERS/Kim Hong-Ji

A motorcycle dispatch rider uses his smartphone next to an advertisement promoting Samsung Electronics Co Ltd's latest flagship smartphone Galaxy S4 at the company's headquarters in Seoul April 25, 2013.

Credit: Reuters/Kim Hong-Ji

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(Reuters) - Samsung Electronics Co Ltd grabbed more smartphone market share from archrival Apple Inc in the latest quarter, with sales of its phones jumping to account for one third of the global market.

Sales of the iPhone 5 helped Apple's volumes grow 6.6 percent to 37.4 million phones in the quarter from a year earlier, but that was not enough to stop its share of the market dropping to 17.3 percent from 23 percent, research firm IDC said.

A flood of cheaper Android-powered devices from the South Korean maker lifted its shipments about 60 percent to 70.7 million, giving it a 32.7 percent of the market, up from 28.8 percent a year earlier.

During the first quarter Samsung shipped more smartphones than the next four vendors combined, IDC said.

The research firm said it was eager to see how new phones from Samsung using its Tizen operating system will look and fit into the company's product line-up.

Of the top five vendors, only Apple lost market share, with LG Electronics Inc, Huawei and ZTE Corp making incremental gains.

(Reporting by Sakthi Prasad in Bangalore; Editing by Edwina Gibbs)

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Comments (9)
mikemm wrote:
This isn’t just a feature/price/product issue, though depite how that is reported.

A big factor is open vs. closed operating systems. Apple controls what apps are available and what can run on its devices. Android based units do not. The lion”s share of this growth is in Asia and countries where there are no real limits on copyrights and a majority of the software is bootlegged and freely copied. Besides the impacts to companies and software developers not getting all royalties, those costs will be passed on to the ones who do pay. There’s also the major problem of viruses and malware that will eventually infect many phones on the Android platform increasing identity theft and other crimes.

AOther statistic that are seldom brought up are customer satisfaction and dependability. The repair and return rates and turnover on Android phones is much higher than iPhones. That’s more sales for the manufacturers, but more out of pocket costs to consumers paying deductables for repairs and replacements and locked into longer contracts for upgrades. I’ve had my iPhone for more than a couple years and most of my workmates have had two or three replacements or upgrades in that same time period with their Android phones and several are looking to upgrade again as soon as the next hot model comes out.

Apr 26, 2013 10:17am EDT  --  Report as abuse
Obsilutely wrote:
Many facets play into why consumers make purchasing decisions. Every company in the world would like to be able to identify with these facets but the truth is it will never happen. All of these facets are subjective and highly susceptible to external influence. Personally, I don’t buy Apple because it is highly restrictive and the feature sets included with each device are intended for end users, not business professionals. Not only do I find their innovation lacking (with the exception of colors and animation) I find their legal stance against Samsung to be a putrid, childish game riddled with self-doubt and jealousy. Apple is also one of the many companies (like Lutron) that will intentionally change their technology model to make other technologies relying on that model to break. Apple made one great product and milked it for all it was worth but its luster is gone. Other companies tend to play on their successful products and typically go on to make products for a variety of markets. But Apple made an iPod. Then they put a screen on it. Then they put a more powerful microprocessor in it. Then they put a phone in it. Then they made it bigger. Now they want to put one on your wrist. It’s literally all the same thing every time with a new coat of paint. It’s amazing how many people missed this! Apple now seems to be isolating itself. They don’t seem nearly as integrated into our society anymore and their product placement is less visible. More power to them, because we now know that a company with large resource reserves is not above behaving like a five year old in a beauty pageant. If corporations are people, Apple’s claim to own the rounded rectangle puts them up there with Michelle Bachmann in the crazy bracket. All that’s left is for Apple to claim using Google Docs makes you retarded… Crazy people usually have a fan base that diminishes over time and Apple’s market share will follow the same trend if they continue with these crazy lawsuits and claims.

Apr 26, 2013 12:09pm EDT  --  Report as abuse
brotherkenny4 wrote:
Too bad people aren’t as interested in real life as they are with these silly little phones.

Apr 26, 2013 2:30pm EDT  --  Report as abuse
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