Samsung vs Apple: average phone prices comparison, or why Apple makes much more money


The average price of a Samsung smartphone has grown to its highest in three years in the second quarter of 2017, thanks to robust sales of the flagship Galaxy S8. The ASP for a Samsung phone reached $235, growing slowly but steadily from a low of $227 around the failed Galaxy Note 7 launch.

And if you are looking for one number to explain why Apple is making much more money in profits than Samsung than look no further than average selling price. Despite selling much less phones per quarter than Samsung, the average selling price of an iPhone in the past quarter stood at a whopping $695, nearly three times higher that of an average Samsung phone.

Apple achieves this by selling high-end phones almost exclusively. Its cheapest phone, the iPhone SE sells for $400, while Samsung has a huge number of cheaper phones that drag the average selling price of its phones much lower.

And while the Samsung Galaxy S8 has brought the ASP up, it's nowhere near the $289 average price Samsung was hitting in 2013. Meanwhile, Apple has seen huge demand for its more expensive iPhone 7 Plus, and plans a luxury bezel-less iPhone 8 (codenamed 'Ferrari') with a rumored price of around $1,200.

source: Yonhap News

FEATURED VIDEO

30 Comments

1. S8PlusIsBoss

Posts: 32; Member since: Apr 22, 2017

Samsung is technology and Android period nothing else matters.

2. maple_mak

Posts: 953; Member since: Dec 18, 2013

#Courage on 3.5mm jack?

3. trojan_horse

Posts: 5868; Member since: May 06, 2016

I doubt the removal of the 3.5,mm jack had much to do with this.

4. gigicoaste

Posts: 461; Member since: Feb 21, 2016

"Apple achieves this by selling high-end phones almost exclusively." You do know that the high-end tag is not defined by it's price or marketing right? Don't want to start another fanboy war here, but you can not claim that you have high-end device having 2-3 years old technology. Apple is an outstanding marketing company relying on a solid and productive software.. that's all!

22. NarutoKage14

Posts: 1346; Member since: Aug 31, 2016

Correction: "Apple sells expensive phones almost exclusively".

5. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Fan boy cheers each time they hear Apple making big profit off them. Its a good thing there are plenty of phone OEMs at the Android ecosystem so that we don't get rip off like our iOS counterpart. I wouldn't be cheering like them. I don't know what I would do, thank god for competition.

10. toukale

Posts: 668; Member since: Jun 10, 2015

Fanatic cheer each time they hear Android has a bigger market share than iOS. It works both ways.

17. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

There's a difference between the two. Cheering higher profit margins means you're happy they're making more money per product. If you're an iPhone user, that means you're cheating paying more money for something that is intangible and likely has no benefit to you. Cheering market share means you're cheering that more people are using the same thing you are. It doesn't mean anything beyond that. Now I'm sure many think that's why people cheer profit margins, because it also means that more people are using iOS devices. But you can cheer for more people using it without cheering for paying more per device, which is what cheering market share does.

20. toukale

Posts: 668; Member since: Jun 10, 2015

@VZWuser76 - You can be cynical and take that view, or look at it that the folks cheering Apple making profits are happy knowing the company/product their support will be around. Look what happened to Palms with WebOS? I am sure WebOS would still be around if Palms was making profits and selling well. There is no good or bad, people cheer whatever they support. They do that by using their hard earned cash. Why does it bother folks? Are you footing the bill? Why call them names? Why call them stupid? Like Samsung and all those for profits companies are not trying. The gs8 is actually priced higher than any iPhone, it's not by a lack of trying on Samsung part.

28. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

Where did I call them stupid? It bothers me because of articles where they talked about Apple raising the price essentially to see if their customers would pay, they did, and now they're doing it again with the ip8. It's not about just recovering your costs and then making a good profit, that's bordering on bleeding their customers, charging whatever they can to see if they'll pay it. I'm more mad at Apple, but also mad at people who not only take that from them, but cheer about it. As for the GS8, notice even though they're charging more than what the iPhone goes for, they're still making less profit per device. Think about that, charging more than Apple is and still not making as much profit. That means that there is more for your money in components and labor than what you get with the iPhone. Now Apple is in a different position then any Android OEM. Apple, in the iOS ecosystem, has no other competition. Samsung, or any other Android OEM, has to complete with every other Android OEM, and that's before competing with Apple. So none of them can afford the luxury of high profit margins, because other people can just go to another Android OEM.

32. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Exactly. If Samsung was the only Android OEM and still selling 300M+ phones, Apple would be dead in the water. In fact Samsung would be selling 1B phones every year if they were the only android OEM.

31. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

We dont have to cheer because a more verstile platform will always have the majority of the market. Windows vs Mac OS/OSX. Linux/Unix vs Mac OS/OSX. Android vs Windows. 1.4B vs 1.2B.

6. VasiliS7

Posts: 203; Member since: Jan 10, 2017

The difference is not the device it self but the services. Apple sells services via a device called iPhone and Samsung sells high quallity devices compared to crappy iPhones but with Android as a service provider which is not as good as iOS.

8. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I don't think i agree with Android as a service provider not as good as iOS. There are as usual pro and con, here how. Without vertical integration or brand loyalty the user would normally do their research to get the best deal that has an acceptable price point. More work, less convenient but better deal. With Apple its more convenient, less choices and usually more expensive.

14. LetsBeHonest

Posts: 1548; Member since: Jun 04, 2013

Android's service is as good as Apple's but the profit is gained mainly by Google not their OEMs right?

21. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Yes, the word critical mass comes into play. Samsung, Huawei are able to reach the critical mass to make a profit. LG, Sony and Lenovo are close to critical mass but broad line so their profit and revenue reflect that as well. Good for the consumer they are still trying. I using a Windows 10 phone to write this post so I sure hope Microsoft would bite the bullet and come up more phones. Having competition is always good for advancement of technology not to mention price that how a free market should work.

7. MarmiteTheDog

Posts: 192; Member since: Jul 31, 2017

Sell old tech at hugely inflated prices and you have Apple's business model. T'aint rocket science...

9. lightyears

Posts: 69; Member since: Aug 24, 2015

The reason is there are many fools in this world which can be fooled around by Apple.

11. toukale

Posts: 668; Member since: Jun 10, 2015

That's it, you discovered their secrets. Apple must be doing some kind of magic/voodoo on those 100's of millions of those folks over the last 10 years. So why are others fools when they are spending their hard earned money on what pleases them? If you are not footing the bill why do you care how they spend their money?

15. LetsBeHonest

Posts: 1548; Member since: Jun 04, 2013

Apple produce and market their products very well. Many of the haters argue that Apple is nothing but a great marketer. Do u actually believe that? They market product right and many people buys it but if it turns out to be a bad product and fails to satisfy the customer don't​ u think it will show negative impact in their future profit? Instead Apple continue​s to sell more n more each year. Which means they satisfy their customers perfectly. Apple make pretty good device. They entered the market right time and made pretty good image aka Goodwill themselves. The "Apple marketing" theory is nothing but hater's fantasy. People by what they like. You cant call someone stupid based in what they buy.

12. cnour

Posts: 2305; Member since: Sep 11, 2014

Reason: Samsung sells specs that are useless.

13. toukale

Posts: 668; Member since: Jun 10, 2015

What else can they do? They don't own the os, they don't own the platform. They are no different than all those Chinese oem's that way. The only thing that make them stand out is their scale. The only thing they control is the hardware so they focus on that as a way to try to differentiate. The problem is since they are using a commodity os, platform and hardware they can't sustain their asking prices for more than a few weeks, before they have to cut deals and prices.

16. cnour

Posts: 2305; Member since: Sep 11, 2014

It is not my problem if they don't own the OS.

33. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

False. Samsung software on the Galaxy S and Note, are way better than any iOS or Vanilla Android running devic eyou can find. The reason Samsung is and sells more phones than any Android OEM is simple. They took Android and superceded its basic functions by adding a skin which allowed them to add more capabilies not natively supported by Android. HTC did this too and is why HTC was a huge Android and Windows Mobile seller before. Because even though HTC had Android and Windows Mobile, they skinned it with Sense and brought software integration where for example, you could text and do social media from a single screen in Sense. Samsung yes brings specs, but they also bring something for it to do. Example, even with a QHD display, 8 cores, more RAm and so many features, the Galaxy S and Note both last longer on a single charge vs the iPhone doing the same tasks. Many many video show this as fact. Its takes power to run heavier software. The iPhone could not on its present specs even run the software on a Galaxy S or Note. Because its not as powerful as you think. But if I could take iOS and bot it on a Galaxy S natively with direct hardware support, IOS on Samsung's hardware would run circles around IOS on Apple's hardware and that is fact. If you liek the iPhone, just like it and be happy. Stop comparing iOS to a platform you obviously don't like oir care for. if you "think" iOS is better than you don't need to justify what you like. Again this is the social issue with pathetic APple fans. The fact they always need to bash anothet to make themsleves seem great, simply proves they know they are not. I dont bash Apple because the iPhone is not as good as the Galaxy S in my opinion. What I do bash them for is charging a premium cost liek the Galaxy and giving me less for the price. As I have stated, I liek that the iPhone doesn't do everythign the Galaxy does. Thus I own both phones because I like having a difference. But don't charge me $800 for a phone that dpoesn't have $800 in capabilities. After all if the Galaxy S7E as PA claims is not worth $800, then explain how the iPhone 7 is worth $800, when it matches NOTHING on the S7E at all. The iPhone 7 has lower resolutions, less ram, less storage, less size, less features, less app, less capabilities and more. If the iPhone was tops $600 for the plus, I think that woudl be perfect. But the S8 or S7's are far and away more worth the $800 than the $800 I paid for my iPhone and nothign you say will ever change it because its a fact, not a personal feeling. I would pay $40,000 for a base car when I can get a Luxury car for that price. But the problem is, you all will do it. Is it stupid? If you feel its not then you can feel however you want. I have the right to say its stupid if I want too.

18. jeroome86

Posts: 2314; Member since: Apr 12, 2012

Thanks PA. Now we gotta here how much it cost to make this and that, etc. ugh.

19. Macready

Posts: 1830; Member since: Dec 08, 2014

The article fails to mention that the average sales price of iPhones actually dropped. A trend that undoubtedly will break with the upcoming release, but if it continues a after that, it will be a sore spot for investors.

23. piyath

Posts: 2445; Member since: Mar 23, 2012

Great article. According to this Samsung is doomed within next couple of years no matter what.....LOL It's brand name VS low prices. It's the ultimate war in the tech sector.

24. L0n3n1nja

Posts: 1584; Member since: Jul 12, 2016

Bad article, doesn't even begin to cover all the reasons Apple is far more profitable. A major one is those high prices iphones have lower manufacturing costs and cheaper components in them. Those HD LCD screens are much cheaper and lower quality than the QHD AMOLED screens with a curved edge for starters.

29. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

This article is stupid. Samsung makes less because they actually spend money. They have a much larger R&D budget. They sell multiple phones and other products, not just a phone and computer and tablet. They have 400,000 employee, Apple does not. Samsung has over 200 products, Apple doe snot. Samsung has factories that make s**t. Apple does not. There is more to the price then PA's B.S. Samsung makes a far more money than Apple. After all Samsung is 25% of its countries GDP. Apple has no bearing on the USA GDP whatsoever! If Smausng had less product to distrubute and create, they would most certainly make more money than Apple becaus ethey already so. All you have to do is look at Samsung fiscal reports. If you added all the money they spend in one year to their bottom-line, they would have 10 times the money Apple has. Stop writing these B.S. articles showing your Apple love. We know you hate Samsung and love Apple. We don't need your clickbait B.S. articles. So desperate to keep Apple in the light. Apple's light burned out after the iPhone 4. Get over it.

34. Eyesopen

Posts: 4; Member since: Jul 06, 2016

i'm not in this argument, but tbh no one should go against both phones, both phones great in terms of speed,camera,display quality, graphics and durability of battery. first i was a samsung fun talking s**t of iphone but i relaxed and said let me go in for iphone and see what he gets.always i used both phones and compare a lot. they are both great phones, but what i noticed is that apps interface on iphone are perfect.but what i also noticed is apps on iphone are very huge to download as compared to my android apps and also user freedom is limited a bit on iphone but others says it makes it secure from virus and stuff.but i think iphones are expensive because only iphones uses its software as compared to andriod a lot of phones use, so if you produce a phone using android software you cant sell it expensive because you have a lot of competitors, that's why any andriod phone has to be less expensive. thats why ipnoe has the advantage to sell it phones expensive,only iphone uses its software.if there are other phones using ios iphone will be less expensive.if there is no other phone using ios,iphone will still sell it phones expensive and even more expensive till this generation end.when it comes to andriod samsung is the best phone of all time but it cant sell it phones expensive because they are other phones using the same software and his competitors are also great.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.