Why Only Samsung Builds Phones That Outsell iPhones

For the first time in years, one single handset model has reportedly outsold the iPhone. Strategy Analytics says that more Samsung Galaxy S III phones than Apple iPhone 4S handsets were sold in third quarter of this year. 

Samsung Electronics (005930) moved 18 million such handsets, while Apple (AAPL) sold 16.2 million during the three-month period, says the research firm. It should be noted that Samsung’s figures represent shipments, not actual sales, but there’s a bigger point to be made here: Samsung is currently the only company that can even come close to competing with Apple when it comes to smartphones.

 Before explaining why, here’s a closer look at the data. Apple’s figures represent actual sales, while Samsung’s numbers reflect the shipments of Galaxy S III handsets to carriers. That means if a carrier has an unsold Galaxy S III on the store shelf, it counts in this comparison. As a result, the Samsung figures of actual sales are lower than shipments. And if you were to count the 6 million iPhone 5 shipments in the Strategy Analytics report, Apple would outpace Samsung: 26.2 million to 18 million.

 In the big picture, however, that doesn’t matter. Back in 2010, I noted that Samsung was taking an Apple-like strategy for its smartphone business. At the time, Samsung offered the first Galaxy S handset running Google (GOOG) Android and Samsung’s own TouchWiz user interface. Instead of multiple handset models offered, Samsung decided to focus on one handset for its flagship phone. Others, such as Motorola (MMI) and HTC (2498), for example, opted for a slew of handsets, each similar but yet different. With one phone model—just like Apple—Samsung benefits from production scale, common components, and similar experience for its Galaxy phone owners.

 I revisited this topic again a year later when Samsung was about to surpass Nokia (NOK) as the top seller of smartphones worldwide. I explained why Samsung was about to become the new smartphone king, pointing out even more reasons for the company’s rapid smartphone success. Samsung then introduced a successor flagship phone, the Galaxy S II, and it set a sales record: 1 million sales in the first 70 days of launch. Here’s the thing: Inside the Galaxy S, the Galaxy S II, and now the Galaxy S III are various hardware components manufactured directly by Samsung.

 The company makes its own chips to power phones, Super Amoled handset displays, and flash memory for internal storage. Apple controls its iPhone hardware as well but not directly: It designs the chips for iOS devices, for example, which someone else builds, and it often invests billions of dollars in component manufacturing plants in return for good pricing and primary production capacity. Aside from Samsung and Apple, who else can manage the component supply chain this well? Not Nokia, Motorola, HTC, LG Electronics (066570), or any other smartphone competitor I can think of. Apple is using that manufacturing edge to produce more units with each new iPhone as well. That’s important, because it helps Apple introduce its smartphone in more countries and on more carriers as soon as possible after launch. 

Guess what: When Samsung introduced the Galaxy S III this year in May, it said it would begin sales in Europe with 145 additional countries soon after. Not two weeks later, five U.S. carriers launched the device—a vast difference in the Galaxy S II launch, where the U.S. didn’t see the phone for six months or more. With each Galaxy smartphone iteration, Samsung continues to follow the Apple-like approach of controlling its own destiny as much as possible. 

Other competitors simply aren’t equipped to do so. So while Apple may have created the playbook for smartphone success, Samsung has replicated it more so than any other in this market. That actually shouldn’t surprise you if you’ve followed the Apple v. Samsung trials: The courts have already found in favor of Apple for Samsung’s replication of certain smartphone design, features, and functions. Again, we can bicker over the definitions of sales and shipments, but I’m not sure that matters unless you want to declare a real “winner” today. More important to me is that Apple finally has some real competition in the market, even though it looks to be just one true competitor.

Saturday, November 10, 2012 | 0 comments | Read More

Apple's iPad mini unveiling reportedly set for Oct. 23

The drumroll in advance of the so-called iPad mini is getting deafening.

 John Paczkowski -- who is rarely wrong about these things -- reported Friday that "people familiar with Apple's plans" tell him that the company will introduce a new, smaller version of the 9.8-inch iPad on Oct. 23 -- nearly a week later than we had predicted.

 According to Paczkowski, the unveiling will occur at an invitation-only event, probably at the Apple's (AAPL) Town Hall auditorium in Cupertino. Beyond that, he says, details are slim: "Sources say the iPad's diminutive sibling will feature a 7.85-inch liquid-crystal display and a Lightning connector.

 It will also probably be thinner. And that's about it." Meanwhile, Topeka's Brian White, who is wrapping up a tour of Apple's Asian component suppliers, reported Friday that he has held what he believes to be a prototype of the iPad mini.

 He writes: We uncovered over twenty suppliers that showed us accessories for the iPad Mini (some already have the accessories boxed, labeled and ready for order) and we actually had the opportunity to play with a pilot iPad Mini used by one of the vendors.

 This 7.85-inch iPad Mini fit our hands like a glove and we were easily able to tuck the device in our sport coat, offering consumers a more mobile iPad experience for certain use cases.

 Last week, we highlighted the improved aesthetics of the new device and we believe consumers will like this improved feel to the back casing.

 Also, the fatigue factor is less of an issue given the lighter weight and smaller size.

Saturday, October 13, 2012 | 1 comments | Read More

Apple, Google moving apart -YouTube not on new iPhone, iPad

 Apple Inc. said Google Inc.'s YouTube won't be included in the next version of the soft-ware used in the iPhone and iPad, the latest evidence of escalating competition between the two companies.

Apple has featured YouTube as a core application since the iPhone debuted in 2007. As Google has pushed into the smartphone market, the relationship between the companies has frayed.

Google's Android software is now the world's largest operating system for smart-phones, used by Apple's rivals, including Samsung Electronics Co."Their two ecosystems are pulling away from each other," said Carl Howe, an analyst at Yankee Group. "At the end of the day, this is two companies agreeing they just don't want to work together anymore."

Apple also plans to replace Google's maps application with its own in the next iOS release.

Users will see the effects when the next version of Apple's mobile software, called iOS 6, is released later this year. A licence expired that al-lowed the company to include YouTube, said Trudy Muller, a spokeswoman for Cupertino, Calif.-based Apple. As a result, the YouTube app won't come pre-installed on future iPhone, iPad and iPod Touch releases or if a user downloads iOS 6 to existing devices.

"Customers can use You-Tube in the Safari browser, and Google is working on a new YouTube app to be on the App Store," Muller said.

Chris Dale, a spokesman for Google, didn't immediately respond to an email seeking comment.

Wednesday, August 08, 2012 | 0 comments | Read More

Apple rumored to release OS X Mountain Lion on July 24

Developers have had access to Apple’s next major OS update, OS X Mountain Lion, in beta form for a while now.

 As for the regular folks, Apple has only said that the update will be available in July, but here we are in the midst of July with no official word.

 This is about when whispers should begin circulating through the rumor mill, and indeed we’re now hearing that Mountain Lion is coming on July 24. The surprising thing is that the update will reportedly cost just $19.99.

 Apple’s previous updates have varied in price, but have been cheaper as of late. Lion only cost users $30, in stark contrast to Microsoft’s roughly $70 Windows 7 upgrades.

 An entire operating system for less than a Jackson might seem impossible, but Apple has a few things working in its favor.

 Firstly, Apple is making this update available exclusively through the Mac App Store. That means no discs to press and ship around.

 Apple also knows that by piping the update right into a user’s computer with the App Store, they are assured of very high rates of market penetration.

 Then of course, Apple has always been able to offer software cheaper because it makes so much money from hardware. The July 24th date is plausible not just because it’s in the month of July.

 That’s also the day that Apple reports it third-quarter earnings, and it’s sure to be a big number like it always is.

 What better way to celebrate than with the release of a new version of OS X? OS X Mountain Lion contains a new Notifications Center, Messaging app, voice dictation, and some visual tweaks.

 If that appeals to you, maybe you want to tentatively circle July 24 on your calendar.

Tuesday, July 17, 2012 | 0 comments | Read More

Apple wins ban on two Android devices: What it means for you

Last week, a U.S. District judge dealt a serious blow to Google and Samsung by slapping an injunction on the Galaxy Nexus phone and the Galaxy Tab 10.1 in a patent infringement lawsuit.

 Although Judge Lucy Koh hasn't found Samsung guilty of patent infringement--not yet, anyway--she ruled that Apple would suffer irreparable harm if the two Android devices were found to infringe Apple patents and remained on sale during the trial.

 The Galaxy Nexus is Google's lead Android device, so Koh's ruling is the biggest patent setback for Android to date.

 (Samsung has appealed Koh's ruling.) I'm not a lawyer or a shareholder in any of the companies involved, so I'm less concerned with the legal maneuvering than I am with the patent wars' effects on consumers.

 Let's take a look at what the injunctions and the greater mobile patent wars mean for the people who are actually using the products:

 Are existing users affected?

 If you own a Galaxy Nexus or Galaxy Tab 10.1, no one's going to show up at your doorstep and ask for it back.

 Your device will continue to work, but there's always a chance that Google or Samsung may tweak their software in future updates to work around claims of patent infringement.

 My Galaxy S II, for instance, lost its "overscroll bounce" effect in an update late last year, and I suspect this was done to avoid a patent claim that Apple has wielded against other companies.

 The patents at issue in the Samsung case deal with universal search, predictive text, slide-to-unlock and the ability to select an action when you tap on certain types of text.

 It's not yet clear whether Google and Samsung can come up with workarounds.

 Can you still buy a Galaxy Nexus or Galaxy Tab 10.1?

 I can't find the original Galaxy Tab 10.1 online, aside from a few refurbished units, but the device is now a year old and not worth buying.

 I'm guessing most retailers had already stopped selling it.

 Instead, you can get the Tab 2 10.1, which remains on sale at Best Buy and elsewhere.

 The unlocked Galaxy Nexus remains on sale on Google's website, but we'll see what happens once Apple posts a $96 million bond that's required to set the ban in motion.

 (If Samsung prevails at trial, it will get that bond money to make up for lost sales.) A Verizon store clerk, meanwhile, told Mashable's Lance Ulanoff that the carrier will sell its remaining Galaxy Nexus stock, but can't import any more units.

 Are all Android devices now doomed? Aside from Samsung, Apple has also sued Motorola and HTC for patent infringement.

 The U.S. International Trade Commission found HTC guilty of infringing two patents, and its latest phones were briefly held up at customs in May while the company's workarounds were approved.

 Apple claims that the workaround isn't good enough, so HTC's not out of the woods yet, but at the moment HTC's Android phones are widely available.

 Motorola also seems safe for the moment, following U.S. Court of Appeals Judge Richard Posner's decision to dismiss the entire case of Apple v. Motorola.

 Posner said neither side could prove damages, and Apple couldn't show that an injunction would benefit itself more than it would hurt Motorola. Apple will most likely appeal the ruling.

 Are Apple products at risk? Of course, Apple's rivals have filed counter-suits.

 The problem for Samsung and Motorola is that they're relying on "standard-essential" patents that are required for telecommunications, and must be licensed on fair, reasonable and non-discriminatory terms.

 The Federal Trade Commission is currently investigating Motorola, which is suing both Apple and Microsoft, over its use of these standard-essential patents to score injunctions.

 If the FTC requires Motorola to license its patents, the company will lose its ability to get Apple products banned.

Friday, July 06, 2012 | 0 comments | Read More

Apple ditches Google Maps software in latest iOS

Apple has unveiled its latest mobile operating system, iOS6, at its annual Worldwide Developers Conference.

The operating system, which runs on its iPhone, iPad and iPod Touch devices, will no longer include Google Maps software.

Apple will instead run its own mapping app, which has a high-quality 3D mode, on the platform.

Google announced its own 3D mapping software last week on its competing mobile platform, Android.

Both companies have used fleets of planes to capture the imagery, drawing concerns from some privacy campaigners.

Apple's updated iOS software is being released in beta on Tuesday, and will be available for general consumers by the autumn, chief executive Tim Cook said.

It will be a free update for owners of either an iPhone 4S, iPhone 4 or iPhone 3GS - as well as users of the latest iPad, the iPad 2 and fourth generation iPod touch.

Tuesday, June 12, 2012 | 0 comments | Read More

Apple moves to block Samsung Galaxy S3 sales in US market

Apple has filed law suit to have sales of Samsung's flagship Galaxy S3 Android smartphone banned in the US in the latest escalation of the two firm's long-running legal battles.

The South Korean giant is set to begin selling the device on 21 June but Apple has filed a suit claiming that the device infringes on several of its patents.

TG-Tech contacted Apple for comment on the latest lawsuit but had received no reply at time of publication.

Samsung said it would proceed with its launch regardless of the complaint filed by its rival.

"Samsung believes Apple's request is without merit. We will vigorously oppose the request and demonstrate to the court that the Galaxy S3 is innovative and distinctive," it said.

"We would also like to assure consumers that the US launch and sales of the Galaxy S3 will proceed as planned. We believe that Apple's actions would only serve to disrupt consumers' access to the latest innovative mobile technology."

The clash is just the latest in a long-line of legal battles between the two firms, with both attempting to have numerous products banned from sales, and accusing one another of numerous patent and design infringements.

The firm's two chief executives were forced to meet at the behest of US judges in May but no resolution to the conflict was reached.

Friday, June 08, 2012 | 0 comments | Read More