Samsung, Apple Stay on Top as Smartphone Sales Pass Feature Phone Sales
April 26, 2013 10:35 AM
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IDC figures show a changing of the guard
Smartphone sales have been on the rise for nearly a decade now, and they're not done yet. The assault of phones equipped with full-fledged browsers, cameras, apps, touch screens, and more continues to cannibalize the market for traditional "feature phones" -- handsets that lack many of these features.
According to the International Data Corp. (
) Q1 2013 was a historic one, marking the first time smartphone sales surpassed feature phone sales. In Q1 216.2 million smartphones were sold, versus only 202.4 million feature phones. Smartphone shipments were up 41.6 percent from the 152.7 million sold in Q1 2012, and fell just short of (5.1 percent lower than) holiday Q4 2012.
South Korea's Samsung Electronics Comp., Ltd. (
) and Cupertino, Calif.-based Apple, Inc. (
) continue to be the most dominant forces in the smartphone industry. Together they accounted for precisely half (108.1 million) of all smartphone shipments.
Samsung continues to outsell Apple
, moving 70.7 million handsets in the quarter, versus the 37.4 million sold by Apple.
Aside from the perennial favorites, the biggest winner for the quarter was
South Korea's LG Electronics
) who leapt into third after spending two quarters exiled outside the top five. The key to LG's success was strong sales of the
Nexus 4 Android smartphone
, along with other handsets like the
The Nexus 4 helped propel LG back into the top five in a big way. [Image Source: Google]
In fourth and fifth place were Chinese Android phonemakers Huawei Technologies Comp. (
) and ZTE Corp. (
), respectively. Both Chinese OEMs are reportedly focused on growing their market share outside of China and the rest of the Asian Pacific region. While primarily an Android phonemaker, ZTE is looking to shake things up later this year
launching a Firefox Linux-based phone
, a fresh challenger to Android's global hegemony.
, research manager with IDC's
team, notes that the quarter was full of big winners -- and big losers. He comments, "In addition to smartphones displacing feature phones, the other major trend in the industry is the emergence of Chinese companies among the leading smartphone vendors. A year ago, it was common to see previous market leaders Nokia, BlackBerry (then Research In Motion), and HTC among the top five. While those companies have been in various stages of transformation since, Chinese vendors, including Huawei and ZTE as well as Coolpad and Lenovo, have made significant strides to capture new users with their respective Android smartphones."
So while the top held steady, there was an eye-catching changing of the guard this quarter in the bottom ranks.
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RE: Let the spin
4/29/2013 11:41:35 AM
Isn't the continued success of a technology company worthy of being discussing on a technology blog?
If we did bring up profit, anyone with an investment portfolio would mention "diversification". Sinking all of your cash into the stock of a firm with a handful of extremely profitable but competitively challenged products is called "stupid". Shorting said stock while over €650 as part of a diversified portfolio is called "clever". Apple is not better than Samsung - they are barely comparable in the sense that one is a relatively low risk stock and the other has already seen one share price collapse.
Profitability in the short term is not everything...
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
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