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Sunday 30 October 2011

Apple Loses out to Samsung in Smartphone Business

Samsung surged past Apple (NASDAQ: AAPL) and usurped its position as the world’s top smartphone maker, in the third quarter with a 44 percent jump in shipments. It has also forecast strong sales in the current quarter. Whereas Apple had introduced its first iPhone in 2007, Samsung is comparatively new as it entered the smartphone market only last year. However, its sales soared mainly because of a sleek production system that is capable of rapidly bringing new products to the market.

Kim Hyun-joong, a fund manager at Midas Asset Management, which owns Samsung shares, said that “In the handset division, Samsung has no real rival models to challenge its products except for the iPhone 4S. Apple and Samsung will continue to dominate the market in the fourth quarter.”

On Friday, Samsung posted more than double profits for its telecoms division, which stood at $2.2 billion and accounted for 60 percent of Samsung’s total profits. Its shipments of smartphones increased by 44 percent from the previous quarter and stood at 27.8 million units, up nearly four times from a year ago. On the other hand Apple’s iPhone sales dropped by 16 percent to 17.1 million units in the third quarter.

Samsung’s share of the global smartphone market stood at 23.8 percent, 9 points higher than Apple. Its shares were up 1.6 percent by 0500 GMT, versus a 0.6 percent gain in the wider market.

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