Apple Losing Smartphone Market Share to Samsung

According to Market Research Company IDC, Apple Company loses worldwide Smartphone share to Samsung. The Fruit Company’s smartphone shipments are outpaced for the first time during the first quarter of 2013.

Apple’ iPhone shipments dropped to under 20 percent for the first time in the history of Apple. The global Smartphone market declined to 18% while Samsung shipments captured the higher rate of sales. Apple’s competitor registered a share of 33% in the global smartphone market. Compared to the last year, the company showed a 4% increase in the number of units sold.

Apple Losses Market Share

According to the specialists, Apple registered a decrease in smartphone shares due to the premium market segment targeted by the iPhone. While Apple chooses its customers based on their economic possibilities, Samsung divided its attention to premium market as well as lower-economic markets. Samsung shipped two times more smartphones than the Cupertino-based company while reaching nine times faster growth than Apple during the first quarter.

As the numbers state, Samsung sold more than 69.4 units in the first quarter, and the shipment rate rose up to 56%. In the same time, Apple’s shipment rate grew with 7% meaning 37.4 million units. This represents the lower-ever year on year growth rate. In the same time, South Korea’s LG Electronics Inc became the world’s third-largest smartphone manufacturer in the respective quarter, for the first time. Their market share increased to 4.9% from 3.2%. Huawei represents another notable presence in the smartphone market. The company became the fourth presence with a 4.8% share, up from 3.3% within the last year.

In the top world’s largest smartphone manufacturers, only Apple lost ground. The other four companies registered a notable increase in what concerns the market share and shipped units. ZTE Corp holds the fifth place within the already-mentioned top.

Perhaps Apple’s strategy concerning the premium marketplaces might transform completely when the company decides to launch the cheaper iPhone model for mass-market users. Nevertheless, the demand for low-prices smartphones is increasing rapidly in China, which has surpassed U.S as the world’s largest smartphone market.

“Phone users want computers in their pockets. The days where phones are used primarily to make phone calls and send text messages are quickly fading away,” said IDC Senior Research Analyst also suggesting the fact that the balance of smartphone market has changes to phone makers while users are dependent on smartphones.

The total smartphone shipment within the first quarter in 2013 reached 216.2 million units, meaning a 51.6 percent of the 418.6 million phones shipped. This fact describes better people’s intention in purchasing a smartphone instead of a regular phone.

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