Print 37 comment(s) - last by Alexvrb.. on May 18 at 8:02 PM

Samsung dominates the Android market

Samsung is destroying all other competitors in the Android smartphone market with the popularity of its devices. A new report is in from Strategy Analytics that shows during Q1 of 2013, Samsung captured 95% of global Android smartphone profits.

Strategy Analytics reports that total smartphone profits during the quarter reached $5.3 billion according to estimates. The research firm also says that the Android platform accounted for 43% of the entire smartphone industry's operating profits. 

Samsung is estimated to have generated $5.1 billion in operating profit around the globe during Q1. Strategy Analytics says that Samsung owes the massive share of profits it grabbed to its efficient supply chain, sleek products, and effective marketing.

LG was in second place with a mere 3% of the global profit share. The research firm estimates that LG generated operating profits during Q1 of $0.1 billion leaving all other Android device makers to fight over the $0.1 billion that was left.

Strategy Analytics believes that Samsung is such a heavyweight in the Android smartphone market that it could use its power to request first or exclusive updates for Android software before rival manufacturers. 

Source: Strategy Analytics

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Not to mention...
By techxx on 5/16/2013 10:33:40 AM , Rating: 1
...the lost iPhone sales. Wohoo!

RE: Not to mention...
By InsGadget on 5/16/2013 10:51:40 AM , Rating: 2
Android has around 75% of the market share for smartphones, but only 43% of the profits. Wonder who is still getting most of the rest of that pie??

RE: Not to mention...
By retrospooty on 5/16/2013 11:03:29 AM , Rating: 2
I know... Its absolutely growing like crazy... In the past year, Android went from 57 to 75%, while even Apple fell from 22.5 to 18.2%

All that and this years crop of Androids are a bigger leap than in previous years. It looks like its just going to continue.

RE: Not to mention...
RE: Not to mention...
By Cheesew1z69 on 5/16/2013 11:19:08 AM , Rating: 2
But, but, they are supposed to double every quarter/year/whatever! Tony says so! They can't be declining! Those stats are WRONG! /s

RE: Not to mention...
By retrospooty on 5/16/2013 11:31:14 AM , Rating: 2
RE: Not to mention...
By Tony Swash on 5/16/13, Rating: -1
RE: Not to mention...
By retrospooty on 5/16/2013 11:28:33 AM , Rating: 2
"There are only two companies making any money in mobile "

Yes, but there are lots of companies making great products that we can buy.

RE: Not to mention...
By karlostomy on 5/17/2013 10:11:00 PM , Rating: 1
the latter makes more money.

Interesting quote.

Isn't it also true that "the latter" is losing marketshare and is posting lower profits?

Something to think about.

RE: Not to mention...
By jimbojimbo on 5/16/2013 11:31:10 AM , Rating: 2
Well, if you're saying their profit % is low then the consumers are the ones winning! Only certain pretty shady companies will charge excessive costs to raise up their profits and keep up the image that it's a higher end phone.

RE: Not to mention...
By Tony Swash on 5/16/13, Rating: -1
RE: Not to mention...
By retrospooty on 5/16/2013 1:55:29 PM , Rating: 2
"Looks like a bit of desperate post hoc rationalisation to me."

Isn't that pretty much your entire MO? Misconstrued info posted to further your agenda... Sounds like you to a T.

RE: Not to mention...
By ven1ger on 5/16/2013 4:48:13 PM , Rating: 2
What you are failing at is that one company trying to do everything will fail or stumble eventually than where you have many companies invested in a product to produce better products and more choice.

Apple makes a lot of profit but they are now falling behind the curve in producing better products, they are playing catchup because they are now competing against Google as the OS developer and a bunch of hardware developer to make better products. The diversity that is the Android ecosystem is why it has overtaken Apple in both the OS and the hardware for smartphones and soon if not already the tablet market.

Eventually Microsoft may overtake Apple because they are not trying to be the only player that makes all the decisions. They (MS) probably would like to be the only player but so far they haven't followed Apple's strategy because they've probably realized a long time ago that it doesn't drive the market as quickly. Already, Apple's lost in marketshare has already been offset with an increase in MS's marketshare.

I'd rather see Apple change it's strategy to a more open ecosystem to include more partners or at the minimum let others develop the hardware for them while they concentrate on their OS but that's not Apple's style, which I believe to be their greatest weakness.

RE: Not to mention...
By retrospooty on 5/16/2013 7:59:42 PM , Rating: 2
Its the old rule of manufacturing... A product that is closed will always lose out to an open one unless it is significantly better, or significantly cheaper than the competition.

Apple/IOS started in 2007 as "significantly better" and they reaped the rewards, but that train ended last year. Its only going to continue unless Apple releases something different. If the iPhone 5s comes out with a 4 inch screen with a lousy 1136x640 screen with lower res and dpi than all of its competitors and only offers a speed increase, its not going to be well received by the tech community.

RE: Not to mention...
By ven1ger on 5/16/2013 10:29:21 PM , Rating: 3
Apple cannot do everything, otherwise there would only be IBM by now...8-).

Apple is trailing in the OS department and trailing in the hardware department and the signs are showing that they are not "innovating" fast enough, they are being out-"innovated" by everyone else and 2nd best or soon 3rd best if MS has anything to say about it. The smartphone/tablet market is extremely volatile, and Apple needs to move a lot quicker, otherwise Apple devices will become another niche product.

RE: Not to mention...
By retrospooty on 5/17/2013 8:06:36 AM , Rating: 2
Totally agreed. It's got to be hard for even the die hard fanboys to not see that at this point.

RE: Not to mention...
By Reclaimer77 on 5/16/2013 3:42:22 PM , Rating: 2
Android has around 75% of the market share for smartphones, but only 43% of the profits.

Who cares?

I'm not always best served by the company who makes the most profits. I never understood why fanboi's for Apple cling to this talking point.

To me consumer choice means way more than profits.

RE: Not to mention...
By retrospooty on 5/16/2013 8:00:38 PM , Rating: 2
What? You care more about what your phone gets you than what it gets the manufacturer? Imagine that!

RE: Not to mention...
By NellyFromMA on 5/17/2013 12:53:08 PM , Rating: 2
Why Google would cannibalize this momentum by trying to unite Android device manufacturers AGAINST Samsung is a real wonder.

RE: Not to mention...
By Alexvrb on 5/18/2013 8:02:52 PM , Rating: 2
It would actually be bad for Google if Samsung becomes the only profitable Android manufacturer. It would eventually mean the death of competition among Android makers, which is one of the main driving factors behind Android's success and rapid hardware iteration. That's one reason Google snapped up Motorola, as a sort of hedge/safeguard against this sort of thing. They haven't really had to play their hand though, yet, but they could if Samsung pushed the other independent makers to the brink.

Anyway, this does validate Nokia's risky gamble to some extent. Nokia is putting some nice models in almost all price ranges and markets (especially for non-subsidized markets), and they've finally got a 92x device hitting both T-Mo and VZW. The Android market right now is pretty crowded.

For Android I like Samsung's hardware the best oveall, I've owned Samsung devices in the past. However, among Android phones, I like the HTC One the best right now. I got to play around with a friend's for a while. But I still am quite happy with my Lumia 822. Too bad Verizon didn't pick up the Samsung Ativ S.

RE: Not to mention...
By Argon18 on 5/16/13, Rating: 0
RE: Not to mention...
By TakinYourPoints on 5/17/2013 2:52:02 AM , Rating: 2
Lost sales are in the low end, and this has all been at the expense of other Android manufacturers (HTC, Motorola, LG). Even the flagship GS3 is a relative niche for Samsung, it only makes up a quarter of their sales and is still outsold by the iPhone (which continues to grow) by a wide margin.

No big deal, buy what you like and what works well. The only companies this has been at the expense of are HTC, RIM, Motorola, and Nokia. HTC has been hit hardest of all, it is kind of unbelievable how hard their marketshare has tanked while Samsung has done so well. Hopefully the One can turn it around, its really nice hardware.

By Gio6518 on 5/16/2013 10:47:29 AM , Rating: 2
Out of all the smartphones on the market Samsung makes the best, so it's no surprise that they would gobble in the Lions share of the market....

RE: Sammy
By jjlj on 5/16/2013 11:20:21 AM , Rating: 2
I felt the same way until I dropped my S3 from about table height which broke the screen and LCD. No other phone that I have owned in the past 13 years has ever broke like this. Roughly $300 to fix, no thanks. I won't buy another samsung phone unless they make them more durable.

RE: Sammy
By Cheesew1z69 on 5/16/2013 11:27:28 AM , Rating: 2
I have dropped mine several times with barely a scratch.

RE: Sammy
By Solandri on 5/16/2013 2:20:48 PM , Rating: 2
Unless we're talking about perfectly round spheres, it's impossible to draw any conclusions about durability from a single drop or even a dozen drops.

Empirical tests for durability at least attempt to test with the same orientation and force. Unfortunately it's usually the manufacturer who does these tests, so we won't ever see the results. Nor will they be comparable between brands because different manufacturers use different tests. Review sites almost never do these tests because they're destructive. And since no lives are in the balance, the government isn't going to mandate standardized drop tests.

RE: Sammy
By rountad on 5/16/2013 2:41:14 PM , Rating: 2
Even then there is drop height and hardness of the surface it strikes...

RE: Sammy
By ven1ger on 5/16/2013 4:55:37 PM , Rating: 2
I like Samsung's hardware but their software sucks...

I still use a basic cell phone, and while Samsung basic cellphones usually are very well built in comparison to others I have, their software for the phones suck. I had a Sanyo cell phone that while the hardware wasn't as good, the software was nice and well laid out, I later switched out to a Samsung phone and realized that the software was not as intuitive as the Sanyo phone. I'd probably go back with a Sanyo phone, if I had a choice.

RE: Sammy
By Mint on 5/16/2013 7:10:39 PM , Rating: 2
YouTube drop tests drive me nuts. I suppose I shouldn't be surprised how many people think they actually prove something...

RE: Sammy
By LordanSS on 5/16/2013 9:48:46 PM , Rating: 2
If you want tough...

...try that one. =)

By ShieTar on 5/16/2013 10:53:12 AM , Rating: 2
Somebody seriously calculated "shares" of profit? Not sales or income, but profit? Doesn't this just prove that Samsungs devices are the most overpriced, or their workforce is the most underpaid, or they know the best tax prevention tricks?

RE: Profit?
By Gio6518 on 5/16/2013 11:02:00 AM , Rating: 2
No profits are high because they actually manufacturer their components, hell they even manufactured crApples components... Until recently....

RE: Profit?
By TakinYourPoints on 5/18/2013 5:51:04 AM , Rating: 2
Profit margins are the partly product of the segment that they're being sold to. High end smartphones have higher profit margins than low end devices, same as with desktop computers and laptops.

Something like a GS3 is going to have much higher margins than a low end phone that is given away for cheap or free. Samsung sells the most high-end Android phones by a wide margin, so it makes sense that they have higher profit margins than other handset makers like LG, HTC, etc. Its the same reason why Apple's profit margins are so high, pretty much all they sell are high end phones.

Market Dominance
By StoveMeister on 5/16/2013 6:55:21 PM , Rating: 2
Strategy Analytics believes that Samsung is such a heavyweight in the Android smartphone market that it could use its power to request first or exclusive updates for Android software before rival manufacturers.

Two problems with this:
1) Samsung doesn't release the updates they currently get in any sort of timely manner. So requesting the update first isn't going to help matters at all.
2) Samsung could use its market dominance do anything it likes- but unless you have some sort of evidence that this is likely, what is the point in opening your mouth?

Companies like Strategy Analytics exist to make noise and hopefully sales from the noise. Look at the website- their only product is noise.

RE: Market Dominance
By ven1ger on 5/16/2013 7:19:38 PM , Rating: 2
I agree with your two points, though don't know anything about Strategy Analytics.

There may another point they never raised - Samsung's dominance may lead them to try dictating to Google what should be done or trying to have more say in what direction Google takes Android, and maybe Google doesn't want Samsung being the biggest hardware developer for Android because they are getting pushy, just guessing based upon some of the previous news about the Google/Samsung relationship.

I'd like to see more hardware manufacturers getting gutsy and producing nicer devices like HTC. The more competition within the Android ecosystem the more better, quality products that everybody wants and hopefully cheaper...

By mckinney on 5/16/2013 10:41:22 AM , Rating: 2
For 160 million handsets shipped for the quarter, if MS makes an estimated $10 per, that leave MS with an estimated $1.6B for the quarter or 30%.

By cscpianoman on 5/16/2013 11:10:07 AM , Rating: 2
I don't know, in my mind this is probably why I would support HTC this go around. It's not that the GS4 is a bad phone and the One is the end all be all, but without the competition we end up with so many problems.

I companies (and governments for that matter) to be agile and lean. When they get large, they get pompous, slow to respond to changes in society and the needs of the consumer. Take a look at Microsoft. Even Apple is starting to be the same way.

Technology moves to quickly to create a one supersized company. Just my thoughts.

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