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

Samsung beats iPhone sales

It looks like a pressurize-hype is building up at Cupertino to give their make or break shot for the new iPhone 5 as Sammy’s Galaxy line has been outstanding in the market shipping nearly twice as Apple for the second quarter.

 Strategy Analytics, a research firm claims that Samsung shipped 50.5 million units for 2Q 2012 topping a new record for a smartphone manufacturer greatest shipment for a quarter and interestingly the company now takes 35-percent of the global market.

 On the other hand, Apple shipped 26 million units on the same quarter that takes about 18-percent of the market share.

 Sammy’s skyrocketing sales for the second quarter profit record of $5.86 billion and up by 79-percent compared at the same month last year.

 At the moment, Apple and Samsung combined market share will have half of the global market for smartphones, with global shipments rose to 32-percent to 146 million units.

Saturday, July 28, 2012 | 0 comments | Read More

iSung Galaxy V: iPhone 5 and Samsung Galaxy S III combined

The most anticipated iPhone 5 concepts have gone on our thread recently giving you tons of creative ideas to preview the expected super-phone from the Cupertino-giant Apple not just aesthetically but what might be under-the-hood and feature-wise.

 But what if you’ll be fusing the new iPhone 5 and to Samsung flagship Android smartphone —-the Galaxy S III.

 Watch the video after the break. Several features that were notable on this design, such memory card slot, NFC, the ultra-shutter and “back and menu keys” which is normal on Android devices on both sides of the iconic iPhone home button.

 These features are some of the qualities we want on either Android devices or Apple iPhone

Saturday, July 07, 2012 | 0 comments | Read More

Samsung soars, HTC stumbles

Samsung Electronics and HTC illustrate the disparity between the haves and have-nots in the smartphone world.

 Samsung earlier today said that for the second quarter it expects to post a record 6.5 trillion won ($5.7 billion) to 6.9 trillion won in profit and 46 trillion won ($40 billion) to 48 trillion won in revenue, both up significantly over the year-earlier period.

 HTC, meanwhile, said it expects to post a profit of NT$7.4 billion ($247 million) and revenue of NT$91 billion ($30.4 million) for the quarter, with profit falling for the third consecutive time.

 The results underscore both the impact and challenges that come from operating in the smartphone market.

 Alongside Apple, Samsung has proven to be adept at selling smartphones at a rapid clip, dominating the market in total sales while taking its fair share of profits.

 While Samsung is a massive conglomerate that makes multiple electronic gadgets and components, smartphones have driven its bottom line for a while.

 HTC, meanwhile, continues to struggle with its comeback attempt, and is just one of many handset vendors facing competitive pressures.

 The company has faced several issues, including a temporary ban on its high-end One X and Evo 4G LTE phones in the U.S., as well as stalled sales in Europe.

 Unlike Samsung, which also sells televisions, chips, and appliances, HTC is purely focused on mobile devices.

 The company earlier this year tightened its focus to a few products, and has put much of its resources behind its One line of smartphones.

 While the One X in particularly has gotten decent buzz, the company has been tripped up by legal issues and overwhelmed by the competitive pressure.

 Part of the issue is HTC's strategy of targeting high-end smartphone users with its One phones.

 In this area, the company faces off against Samsung's own Galaxy S3, which arrived with a tremendous amount of hype and has been a strong seller globally.

 The Galaxy S3 has started to arrive at the U.S. carriers, where it will be available at every major one.

 HTC's early efforts with the One phones were focused on T-Mobile and AT&T, with a variant created for Sprint.

 Samsung is expecting profit to nearly double from a year ago, with revenue rise 22 percent.

 Samsung's performance hasn't been perfect itself. While the Galaxy S3 was already out around the world, it's only now hitting the U.S. On Wednesday, Google pulled the Galaxy Nexus from its Google Play store due to the ban Apple won over Samsung in their ongoing patent litigation battle.

 Google confirmed that it would be returning next week with Android 4.1, or Jelly Bean.

 Still, the success of Samsung has come in the face of continued concerns that demand for consumer electronics, particularly in Europe, is weakening amid economic woes.

 Companies such as Samsung and Apple have continued to buck the trend.

Friday, July 06, 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