WSJ: Apple is closing the gap with Samsung

WSJ: Apple is closing the gap with Samsung
Since Samsung took over as the top smartphone producer in the world during the third quarter of 2011, Apple has had to play catch up. Android powered handsets, including Samsung's flagship Galaxy S and Galaxy Note models, have been the most popular phones in the world. But Samsung had a fairly substantial drop in market share during the third quarter, according to analytics firm Canalys. Year-over-year, Samsung saw its third quarter market share decline from 34% to 25% with 78 million smartphones shipped in the 2014 period.

On the other hand, Apple has positive momentum working for it. By increasing the size of the screen on the Apple iPhone 6 to 4.7-inches, and to 5.5-inches on the Apple iPhone 6 Plus, Apple has successfully found ammunition it could use to fight back against large-screened Android models. For the calendar fourth quarter which ended in December, some analysts predict that Apple sold in excess of 70 million iPhones. Connected Apple analyst Ming-Chi Kuo of KSI Securities recently forecast that Apple would announce shipments of 73 million handsets for the period.

Apple will announce the figures tomorrow when it reports its quarterly results. The calendar fourth quarter, which is the company's first fiscal quarter, is historically the best three month period for iPhone sales each year. The combination of Apple's peak quarter for its smartphone combined with Samsung's declining fortunes, could result in some interesting figures as Apple cuts into Samsung's global smartphone lead.

source: WSJ

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117 Comments

1. Busyboy

Posts: 731; Member since: Jan 07, 2015

PA has no chills when it comes to posting pro Apple articles.

2. Mxyzptlk unregistered

Apple is rising

22. LebronJamesFanboy

Posts: 671; Member since: Mar 23, 2013

Apple is rising because they use their value to their advantage. As the most valuable brand, it was pretty easy for them to start breaking sales records again after doing something many people wanted them to do: make the display larger. Although I'm a hardcore Android fan, I can admit that an iPhone probably is a better phone for the average user who doesn't expect nearly as much as us geeks do out of our smart phones. Having said that, there is no doubt that the iPhone 6 is definitely an incredible device.

92. androidmachines

Posts: 31; Member since: Jan 10, 2015

Oh please, what the PA is doing is absolutely deplorable. All these figures just show that there are a lot more players in the Android arena that are justifiably taking some market share from Samsung. Apple on the other hand is in a honeymoon period with its die-hards rediscovering that Samsung was right all this time. Sorry Steve Jobs, people buy phones with bigger screens more.

95. tuminatr

Posts: 1123; Member since: Feb 23, 2009

Agreed I have also read that LG has had a huge increase in marketshare. The thing about android is Samsung could compleately fail and someone else would take their place. Android does not depend on one handset manufacturer. As for the new Iphones they are a big improvement over older models. I hope the market stays this competitive its good for us consumers.

97. stealthd unregistered

Samsung wasn't "right" about anything. They never claimed big screens were the future. They just throw everything at the wall and see what sticks. Big screens stuck. Their bloatware hasn't, which is why every new version of Touch Wiz becomes more like stock Android. Getting one thing "right" doesn't mean much when they still do so many things wrong.

109. GalaxyS5

Posts: 430; Member since: Aug 05, 2014

they get MANY things right, and that's why I preferred Samsungs. From the feature to the camera to the friendly UI to the durability. I always stand between buying a samsung and buying something else, although that "something else" is catching up, they still make better all around devices. I'm talking high end anyways.

112. AlikMalix unregistered

Wow, I applaud you for your post - well observed...

101. LebronJamesFanboy

Posts: 671; Member since: Mar 23, 2013

"All these figures just show that there are a lot more players in the Android arena that are justifiably taking some market share from Samsung." ...I don't think you quite get it. Samsung didn't just lose marketshare to the overall Android market, but they had far fewer shipments, which resulted in profit decreasing to $3.9B profit in Q3 2014 compared to $9.6B Q3 2013. I hope you understand the difference. Just because new players come into the market doesn't mean your sales/shipments should decline. For instance, despite the more players, Lg gained marketshare and ultimately performed far better YOY, by shipping a best ever $16.8M smartphones in Q3, representing a 39% increase year over year compared to Q3 2013. Also, Apple continues to sell more and more phones each year despite steadily losing marketshare to Android. PA isn't doing anything that is "deplorable"...you just fail to accept the facts.

111. androidmachines

Posts: 31; Member since: Jan 10, 2015

Fanboy, its simple economics actually. Because people are buying less Samsung then there is definately no reason why they should ship more because the demand is declining right? What in the world would justify Samsung buying flooding the market with tonnes of units when people aren't buying them. If this shows anything, its that Sammy is rightfully responding to to a decline in demand of its phones.

114. LebronJamesFanboy

Posts: 671; Member since: Mar 23, 2013

Nope, try again. You first argued that Samsung is declining simply because there are new players in the market. However, it's evident through LG, and many other companies, that you can improve performance despite of new players. Demand for Samsung phones isn't simply down because there are new players. It's down because Samsung isn't performing as well this year as they did last year. They have not yet figured out how to respond. Also, why call me a fanboy? I actually like Samsung products. But I guess it's wrong to not use a bias when evaluating the declining performance of a company I like? Believe it or not, I hope they improve.

117. androidmachines

Posts: 31; Member since: Jan 10, 2015

I see I am talking to a novice here so I will make things easy for you. The rise in demand for other branded android phones is taking market share from Samsung, which means there are less Samsung phones being bought. So the company doesn't have to supply as many phones as before in response the the market. You keep saying they are not performing as well, you have to qualify this point by saying how they are failing. They have responded to the decline in demand by not producing as many phones because they will be spending more money building phones that will be stuck in warehouses. If you cannot see the point then its too late for you.

113. irfanmajra

Posts: 3; Member since: Jan 27, 2015

you are wrong here, how can you give a judgement by giving one example of LG. I am from a big cell phone market i.e. Pakistan and i know how small players in android market are gaining ground against samsung. In Pakistan huawei, xiaomi, Micromax q mobile are getting the space on the cost of samsung.

5. rd_nest

Posts: 1656; Member since: Jun 06, 2010

Forget all this, check the new Exynos 7420 benchmarks. It aces Qualcomm 810. http://browser.primatelabs.com/geekbench3/compare/1708087?baseline=1780313

33. ciprian.ruse

Posts: 320; Member since: May 13, 2014

Very interesting ! Thank you for point this out faster than PA which is stuck on Apple news...

60. CreeDiddy

Posts: 2186; Member since: Nov 04, 2011

The A9/A9X will be just as fast if not faster. I expect 40%-50% improvement in battery life performance, along with 2100 single core/5500 multi core speeds. This can done with 3 cores rather than 8. If Apple goes with 4 cores these numbers will be achieved with an increase of at least 20-30% over the 1800/4600 numbers that the A8X chip boasts right now. Yes those numbers on the 7420 look impressive, but with 8 cores it should be closer to 2000 single/6000 multi core

90. j2001m

Posts: 3061; Member since: Apr 28, 2014

The above scores was on a 2k screen ver a crap 1080p phone (lg) I.e. If it's on a 750 screen again good luck with that, also with the 8 cores it may be getting lowers scores due to the lower clock with the more power cores

16. LebronJamesFanboy

Posts: 671; Member since: Mar 23, 2013

Because PA never posts pro Samsung articles. Facts are facts. I like both Companies, but Samsung hasn't been performing as well recently as they have in the past.

24. roldefol

Posts: 4744; Member since: Jan 28, 2011

True that. Samsung rose to prominence in part by exploiting Apple's flaws. They made their UI look just enough like iOS for comfortable comparisons, then sold bigger phones for the same price. Now that iPhones have caught up in size, the Galaxy S line doesn't stand out. Samsung got lazy with the S4 and S5 designs. They don't deserve to stay on top.

50. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

They just posted a whole article about Note 4 beating the nexus 6 in camera department. Dont be a blind sheep.

61. Gp_Customs

Posts: 269; Member since: Jan 14, 2015

Apple is a status brand. When you see the prices of the unsubsidized phones approaching $1,000 and realize that a lot of folks spend less on their cars then on their iPhones, now you realize that many, if not most, are buying Apple for the brand. And there are far more people who get excited about brands than those that get excited about technology. However one of the things that can damage a brand tied to status over time is the slow bleed of visible, low status buyers using a product.

67. darkkjedii

Posts: 31034; Member since: Feb 05, 2011

So what you're saying is, you're the reason Samsung is sliding.

84. iWin_Droid

Posts: 76; Member since: Jan 22, 2015

Don't mind him, he's Arte-8800

85. darkkjedii

Posts: 31034; Member since: Feb 05, 2011

He actually thinks we don't know that too.

72. roldefol

Posts: 4744; Member since: Jan 28, 2011

Yes, the iPhone started as a luxury item with ridiculous on-contract prices, but it's since trickled down, through carrier subsidies and last-year or two-years-ago models so that pretty much anyone in the US can afford one. That clearly hasn't dented the brand's cachet. Apple is not Mercedes or BMW. More buyers only strengthen the brand.

62. Gp_Customs

Posts: 269; Member since: Jan 14, 2015

However we are seeing cracks in this façade. People are starting to complain more vocally about Apple, the announcements lack magic and Tim Cook lacking personal style. Jobs was a celebrity-Cook another CEO, in the end, people are slowly coming around to the idea that the iPhone is just another phone and increasingly an overly expensive one at that. If you overpay for something, you are kind of stupid. Thus, without Jobs, Apple buyers are increasingly being equated to people who don’t know any better rather than people you’d want to emulate. And I think both Samsung and to a lesser extent, Microsoft, get a lot of the credit.

91. j2001m

Posts: 3061; Member since: Apr 28, 2014

Also edge phones will get more of a look in going by what by note edge is been doing to my iPhone mates, they now all getting Samsung s edge phones

42. HildyJ

Posts: 338; Member since: Aug 11, 2012

Indeed. So where were the 13 quarterly posts entitled "Samsung Beats Apple Again!"?

105. rallyguy

Posts: 620; Member since: Mar 13, 2012

Alan, Your back to your biased pro Apple articles again. Of course Apple gained ground in Q3. This is when they released their new model. You could argue the same for Samsung in April and October when their top tier phones are released. Then Apple sales will look small.

3. Damo579

Posts: 264; Member since: May 18, 2013

I'll be right back, going to grab some popcorn.

* Some comments have been hidden, because they don't meet the discussions rules.

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