+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Even when Samsung gets it right Apple still kicks its butt

Oct 31, 2015, 19:21 IST

A model holds a Samsung Galaxy Alpha smartphone during a launch event in Jakarta, August 28, 2014. South Korea's Samsung Electronics Co Ltd said August 18 it plans to set up a factory to produce mobile phones mainly for Indonesia, one of the world's fastest growing markets for the devices.REUTERS/Beawiharta

Samsung's Q3 2015 results appeared to indicate that the company was growing again and coming out of a two-year-long slump.

Advertisement

The recovery was well under way, the numbers appeared to show, as revenues rose about $4 billion to $45.6 billion. The company cited "significant" increases in demand for the Galaxy Note 5 and S6 Edge smartphones.

Could it be that these new phones - which have received universally good reviews - are finally stemming the onslaught from Apple's iPhone 6? Apple CEO Tim Cook seems to have become obsessed with "Android switchers" over the last year. Maybe he was worried that Samsung was threatening future iPhone growth?

Unfortunately not, as these charts - and job cuts of 30% of Samsung's entire staff - show.

Here's a look at what is going on courtesy of Jackdaw Research.

Advertisement

The bottom line: Apple's new strategy of taking incremental market share from Android appears to be working.

First the big picture. Revenues are up for the entire company, which is bouncing back after an awful 2014:

But in 2014, it became obvious that Apple would launch a phablet-sized iPhone 6 later that year. That hurt sales at Samsung, as people held off buying new Galaxy and Note models while they waited to see what Apple would deliver. The new iPhone 6 crushed Samsung when it launched.

You can see the decline in this chart:

Jackdaw Research

There are some signs that in recent quarters phone sales may have stabilised. Samsung actually shipped more phones in Q3 than the year prior. But compare the increase in Samsung shipments (4.6 million phones) to the increase in Apple shipments (8.7 million), according to Strategy Analytics.

Advertisement

Apple's greater increase comes off a smaller base, too:

Strategy Analytics

And that is why Samsung is losing market share, even though it is shipping more phones. Apple is simply getting to new customers faster than Samsung is right now.

NOW WATCH: Every square foot of an Apple store is designed to make you spend more money

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article