Foreign media Samsung’s mobile phone sales are the highest globally, but its profit is only one-seventh of Apple’s
Samsung has the highest global mobile phone sales, but its profit is only one-seventh of Apple's
【Phoneauto News】The high sales of Samsung phones and the strong profit-making ability of Apple are both well-known facts. According to foreign media reports, Samsung has the highest phone sales in the world, but its profit is only one-seventh of Apple’s.
Samsung and Apple
The latest data released by market research company Omdia shows that Samsung Electronics sold 53.3 million smartphones (based on shipments) in the second quarter of this year, with a market share of 20%, a decrease of 14.3% compared to the same period last year. However, Samsung has maintained its leading position in sales in the first and second quarters of this year. After giving up the first place to Apple in the last quarter of last year, Samsung has regained its leading position. Apple sold 43.2 million smartphones in the second quarter of this year, with a market share of 16%, a decrease of 11.7% compared to the same period last year.
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Foreign media reported that although Samsung Electronics has surpassed Apple in sales, its profitability is significantly lower than Apple’s. Data from Counterpoint Research shows that Apple’s operating profit from smartphone sales in the second quarter was $11.05 billion, seven times the expected operating profit of $1.56 billion for Samsung Electronics in the same period.
Foreign media believe that compared to Apple, Samsung’s lower profit is due to the significant difference in the average selling price of smartphones. Samsung has maintained its position as the global sales leader by launching low and mid-range products such as the A and M series. In contrast, Apple maintains a high-price strategy. Data from Consumer Intelligence Research Partners shows that the average selling price of iPhones has risen from $802 in 2019 to around $1000 this year.
However, Samsung Electronics plans to increase profit margins through high-end models, the Z Flip 5 and Z Fold 5, both of which have higher prices compared to their predecessors. Samsung Electronics also plans to sell over 10 million units of the Z Flip 5 and Z Fold 5 this year.
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