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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127 Comments

1. HillaryClinton2020

Posts: 191; 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: 510; 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

12. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

How much does it costs to produce iOS?

26. marorun

Posts: 5029; Member since: Mar 30, 2015

Probably similar to android OS in fact.

53. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

So, how much money does Samsung pays for Android for each phone it sells and how much money does Alcatel pays for Android for each phone it sells?

71. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

$0. software doesn't require production costs, its developed. Software development costs are far cheaper than hardware product cost by BILLIONS. You can develop software with just 10 people in a room. Microsoft has over 100,000 employee, how many you think are dedicated to just Windows or Office? Because Apple only brings small changes to iOS per year, their cost on IOS don't increase each year, they go down. The foundation of iOS has remained unchanged since iPhone OS 1.0. In fact if you download the SDK, there are still references to iPhone OS in the code. Its just like Windows. Microsoft spent the most most money of Windows, when they did Vista, when stripping out all the legacy code. Then they spent money to put it all back in Windows 7.

98. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

If you think that iOS, office, cloud, mail, photo/video editors, educational software and other services accessed by a billion devices are free, I will gladly pay you 1 million € (heck, I'm generous, I'll pay you 10 million €) a year if you can make them, and a server system, that cost 0€ to maintain. PS: I don't want adds - which is Google's way of maintaining zero costs for the user (Apple services are free of adds). What do you say? If we only take into consideration the cost of the cloud service, we get at least 100 million €/month (1.2 billion/year), you dumb ass, and that's with the lowest cost per GB there is...

124. Marcwand3l

Posts: 439; Member since: May 08, 2017

@ Leo_MC iOS has an App Store that makes all the money apple needs to develops services that make ios useful for end users. So the cost of office, cloud, mail, photo/video editors, educational software and other services is irrelevant when Apple reports each year more than decent profits for their software services. Stop trying to act like iOS is a burden for Apple when it's absolutely not the case.

128. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

Dude, iOS and other apps cost money to develop, the Store costs money to manage, iCloud costs money too (programmers, electricity, hardware - servers, ssd's etc). When one buys an iPhone, one buys not only the hardware - which costs, as everyone is saying no more than 250$/device - but also access to all Apple's services (free and not so much free).

87. omnitech

Posts: 1131; Member since: Sep 28, 2016

Jack crap. IOS1 - 6 were EXACTLY the same and IOS 7 - 10 are exactly the same. The cost of IOS was paid during IOS 1.

99. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

That is one of the stupidest message I've ever read.

110. omnitech

Posts: 1131; Member since: Sep 28, 2016

lol the truth is stupid now? Okay then. lol

119. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

Only in your twisted world one can find 3D touch, for instance, in iOS 1 or 7. So, if that is your "truth", you need counseling, dude, because you live in the twilight zone.

123. Marcwand3l

Posts: 439; Member since: May 08, 2017

its irrelevant how much it costs, ios is making money for apple is profitable as a platform the same way Android is for Google.

127. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

How much money does iOS make for Apple? You must have the numbers if you are so sure.

19. Zylam

Posts: 1817; 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: 574; 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: 999; 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 ;)

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