But in the higher-value, higher-margin smartphone
category, the duo accounted for nearly 50 percent of the market (32.2
percent for Samsung and 15.4 percent for Apple), according to Walkley.
He projects that Apple will increase its smartphone market share on
strong sales of the iPhone 5 to 20.6 percent in the fourth quarter,
while Samsung is expected to slip to 30.5 percent.
Last week, market research firm ABI Research Inc. said Samsung shipped more than twice as many smartphones as Apple in the third quarter.
But despite its advantage in unit sales, Samsung still trails Apple in
percentage of industry profit, 59 percent to 47 percent, according to
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You wonder how long this can continue. With handsets—and
particularly smartphones—driving so much business and innovation in
electronics, how can it be that only two handset vendors turn a profit
ABI's advice to Android-based handset suppliers is to
follow Samsung's lead by offering a range of smartphone products at ever
lower price points to maintain market share growth. But growing market
share by cutting prices won't change the equation described by Walkley.
Although Apple took some lumps for anticipated erosions of gross margins
following its most recent quarterly report, the company continues to
capture more than half of all smartphone profits even as Android grows
its lead as the No. 1 smartphone OS.