Record $465 price gap observed between Apple and Samsung smartphones


According to US research company Strategy Analytics, the price gap between Apple and Samsung smartphones has reached the record-breaking $465. 

The firm estimates that the difference between average retail prices of Apple and Samsung LTE phones in the US has widened to more than $400 during Q4 2016. During the October-December period of the same year, the average selling price of Apple phones reached $692, while that of Samsung handsets stood at $227.

It's important to note that Samsung's Galaxy S8/S8+ phones were not included in the analysis, as they premiered in Q2 2017. The research was also conducted at a time when sales of the iPhone 7/7 Plus were booming, while Sammie had to compensate for the Note 7 recall by producing more low-end devices. 

Still, Strategy Analytics says that this is no temporary blip and that the "widening gap between the two handset makers is likely to further rise". As further evidence, the research company also mentions that since 2012, average retail prices for Apple handsets have risen from $600 to almost $700, while those of Samsung phones have fallen from $438 to around $200 for the same period.

Although this might seem as shocking at a first glance, we have to remember that the two tech giants rely on vastly different sales strategies. Apart from the iPhone SE which, let's be honest, wasn't that affordable, Cupertino focuses entirely on producing and selling premium phones. 

Samsung does follow this approach for its flagship handsets, but the Seoul-based manufacturer also offers a very diverse range of low- and mid-range handsets. As a result, Samsung usually ships more smartphones than any other manufacturer in the world, but on the other hand, Apple's profit margin per unit sold is a lot bigger.

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109 Comments

1. HillaryClinton2020

Posts: 192; Member since: Feb 08, 2017

That because people who can afford $700 price tag will choose Apple over other Android cheap junk. status quo ftw If flagship, then iPhones, plain and simple.

2. androiduser

Posts: 555; Member since: Jun 18, 2014

But the thing is that i wanna get what i pay for and id rather have the s8 which costs way more to produce than the cheap to produce but overpriced iPhone. Plus iPhone is so childish

19. Zylam

Posts: 1823; Member since: Oct 20, 2010

Why don't you give us some figures as to how much an S8 costs to make? You're still spouting the tropical Apple ripps off people while Samsung gives them full value? Guess what buddy, it's costs $307.50 to make an S8, http://www.androidauthority.com/costs-make-samsung-galaxy-s8-766126/ Samsung ripps off everyone just the same.

22. ShadowSnypa786

Posts: 654; Member since: Jan 06, 2017

http://www.telegraph.co.uk/technology/2016/09/23/apples-iphone-7-costs-just-220-to-make/ iphone 7 cost 220 to make its probably even cheaper now to manufacture. So yeah the phone people say is the best looking smart phone right now (Galaxy S8 and S8 Plus) cost more money to make yet sells for less. It has way more features than the iphone 7 like wireless charging and VR.

31. marorun

Posts: 5029; Member since: Mar 30, 2015

http://fortune.com/2016/09/20/iphone-7-cost/ Funny Zylam the Gap seem much wider between cost to produce and price sold on apple side.. nice try ;)

90. omnitech

Posts: 1131; Member since: Sep 28, 2016

Did you even read the article sheep? lol go read it.

52. AlikMalix unregistered

@ androiduser post #2 S8 costs about $100 extra cost to build and cost about $100 more than the latest iPhone. Wtf you talking about. You and the rest of the herd keep saying it like Samsung costs $700 to produce and sells for $800. Samsung also did not make their own operating system - they get it for free!!! Samsung just waits for google to update android and throw their apps in. You guys are in denial (I'm being serious not trolling).

107. mrochester

Posts: 1043; Member since: Aug 17, 2014

I'd rather get the better iPhone 7 Plus than an S8. The S8 only runs Android, not iOS.

8. RebelwithoutaClue unregistered

That's about the stupidest remark you made in a long time and you made a lot

54. AlikMalix unregistered

@ rebel post #8 His trolling (post #1) nature is hiding a good point. I hate myself for agreeing to his comment but think about it. Earlier there was a report that Samsungs flagship sales are only about 20% of their phones sales. Now they confirmed their average from all devices sold is around $250. That doesn't mean that android users get better value (which is subjective anyway) - it means that they don't sell as many of their flagship models which cost $800. This also means that in order to bring down that to $250 from 20% of devices sold at above $600 they must have sold plenty of sub $200 priced devices. Apple sells cheaper phones and older phones too, but because their average selling price is just under $700 - means that most of their sales come from latest flagship Seles. IPhone flagship sales are no slouch compared to all handset in the world - they're one of the highest if not the highest selling device. Even if you mush Note and Galaxy and Galaxy+ device sales together - iPhone latest flagship probably outsell those too. This means that people with $650+ to spend will more likely spend it on an iPhone than Samsung (Samsung is like 80% of all android, correct me if I'm wrong) that means that when it comes to flagship money - people would prefer an iPhone over the best of Samsung or android in general. Which also means tha tandeoid market share easily consists of cheap devices. Not trolling just observation. Don't care what the other trolls are gonna deny - wondering what you think...

62. RebelwithoutaClue unregistered

@AlikMalix there is a difference in nuance there. Is it likely (especially in USA) that a person would spend 700 on an iPhone rather than a Samsung flagship, most definitely. But there are so many factors to think about. Samsung lost a big portion of their flagship sales with that Note 7 fiasco. More and more competitors are selling flagship Android smartphones (at lower prices), making it more difficult for Samsung to sell their flagships. Samsung not only competes with Apple, it also competes with every Android brand out there. Apart from delivering a premium device, Apple's strong selling point is that they have the only iOS device out there and in the end, people tend to have either a strong feeling towards iOS or towards Android. Furthermore, a lot of people who are able to spend 700 (or more) on a flagship, wouldn't spend it on an iPhone but neither on an expensive Android smartphone. Of course, the majority of Android smartphones are el cheapo ones, most of the people I know don't care about the latest or greatest, they just want to have a phone that works. But given the fact that about 80% of all smartphones are running Android, even 5% of that is a big number of flagships.

97. AlikMalix unregistered

Rebel, thanks for the post, nothing to argue with there. But regarding your last paragraph (even though its all correct) I was trying to keep this Samsung vs Apple only.. not Android Consortium vs iPhone

101. AlikMalix unregistered

... (sorry kid was crying, had to go)... the point I'm getting to is, if Samsung is so much better, such a heavenly phone, compared to useless, evil iPhone, how come when it comes to flagship money - iPhone sells most? I don't buy the "brainwashed, fashion accessory, just want to show it off for the logo" bs, I have not met anyone since 2007 that actually feels that way about an iPhone. If I ask - it's experience, trust, and overall checkpoints of the iPhone vs Android for them... I also don't buy the Apple does not have to compete with Android like Samsung does - since people that purchase their phones mostly get it from carrier or retailer - and the iphones are right next to all the android offerings - and they choose by price, design, and features right in front of them to compare! Apple competes with Android as much as Android (any phone) competes with iPhone... Why is it that if Apple has a great retention rate - sheep, if Samsung has great retention rate - smart? If iPhone 6s had to be recalled twice and then had record preorders for 7 - everyone here would be ridiculing iPhone buyers as blind sheep... News flash this just happened to Samsung - these people are praised for smart choice? wtf....

111. omnitech

Posts: 1131; Member since: Sep 28, 2016

Well considering the iphone 6 design is still going in 2017 and wont change until 2018 at the earliest, they BETTER have that design down and not have any recalls.

103. RebelwithoutaClue unregistered

@AlikMalix, I'm not used to either of us typing long comments. We're almost like you know who ;)

115. AlikMalix unregistered

@rebel post #103 But I value your input though, regardless how deeply you disagree with me.

117. RebelwithoutaClue unregistered

Oh I didn't deeply disagree with you, just partially. Besides the world would be a boring place if we all had the same opinion ;)

11. DRS1977

Posts: 680; Member since: May 27, 2015

The iPhone is the Toyota Corolla of phones. Everyone has one, even the cleaning lady.

39. lallolu

Posts: 734; Member since: Sep 18, 2012

Stop dissing the cleaning lady. She gets paid quite well in some places. You are right though that everyone has an iphone. The hype is real for it though. That is why 'everyone' wants it to feel 'up there'. However, some just wants it because they want it.

46. xfire99

Posts: 1207; Member since: Mar 14, 2012

This is how sheeples can afford buying iPhone.https://www.youtube.com/watch?v=_LKLZW6uKyY

47. L0n3n1nja

Posts: 1603; Member since: Jul 12, 2016

I worked for Verizon for nearly 4 years, teenage girls and elderly people were the most likely to want an iPhone. They aren't hip or cool, it's the me too phone so you can fit in.

56. AlikMalix unregistered

I know plenty of people working in carrier and retailer stores - the demographics for android or iPhone are literally the same!!! Stop trolling lies.

55. AlikMalix unregistered

Toyota Corolla is not the fastest car in the world. iPhone is the one of the fastest phone!!!

61. Michigan

Posts: 246; Member since: Nov 19, 2016

that hurts! that's right,haha!^^^

92. cleatglitch

Posts: 166; Member since: May 25, 2013

bam...drs1977...that was cold yo

13. Nathillien

Posts: 11; Member since: Feb 17, 2017

And that is why those are called ... sheep - officially.

16. limporgyuk

Posts: 376; Member since: Nov 06, 2013

Apple flagships of 2016 has the same specs as Samsung or LG phones from 2012. Only girls and mums buy iphones

108. mrochester

Posts: 1043; Member since: Aug 17, 2014

And tech enthusiasts and people who value good UX.

18. ColinW

Posts: 413; Member since: Jun 04, 2014

A large number of people could not afford to buy iPhones if they had to pay the money upfront. As for Android phones being cheap junk, I can go out and see many Android phones that make iPhones look like mid-range junk, yet cost a fraction of the cost.

20. marorun

Posts: 5029; Member since: Mar 30, 2015

Funny per 10 iphone sold 8 are iphone SE lol. Same amound of low end android versus high end one. Sure Sheeple do love spending nearly 600$ ( CAD ) on a device thats a 300$ moto g plus beat in about every aspect lol.

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