Samsung counterattacks Apple as the most profitable mobile phone manufacturer

With the sharp increase in the demand for Samsung's mobile phone market, Apple lost its title as the world's most profitable mobile phone manufacturer. Instead, Samsung, a South Korean manufacturer, took the throne of the most profitable mobile phone manufacturer for the first time. .

According to Strategy AnalyTIcs, a world-renowned information technology, communications industry, and consumer technology market research organization, Apple ’s mobile phone profits in the second quarter of this year are expected to be approximately US $ 3.2 billion (US $ 19.6 billion), up from US $ 4.6 billion last year (US $ (28.2 billion yuan) in profits, the decline is very significant. At the same time, Strategy AnalyTIcs predicts that Samsung will receive a total of US $ 5.2 billion (approximately RMB 31.9 billion) in profits from the feature phone and smartphone markets in the second quarter of this year.

Although Apple's high-priced iPhone smartphones have pushed Apple to become the world's most valuable company, iPhone users seem to be no longer keen to own the latest Apple models.

From the market point of view, because the price of iPhone 4 is much lower than the latest iPhone 5, people still maintain a continuous demand for the iPhone 4 that has been on the market for three years, which has also reduced Apple ’s mobile phone The average unit price.

Samsung counterattacks Apple and becomes the most profitable mobile phone manufacturer

As the prices of smartphones in Western and emerging markets continue to decrease, it is clear that Apple's gross profit has also been affected. According to Apple ’s latest financial report, the average unit price of Apple ’s mobile phone in the second quarter fell from 613 US dollars (about 3758 yuan) in the first quarter of this year to 581 US dollars (about 3176 yuan).

The same trend has caused a decline in Samsung's mobile phone profits. Compared with the second quarter of last year, the profit of Samsung ’s mobile phones dropped from US $ 5.6 billion (about RMB 34.3 billion) to an estimated US $ 5.2 billion (about RMB 31.9 billion) in the second quarter of this year. Even so, Samsung, with its strong performance of the flagship model Galaxy S4, has at least squeezed Apple out of the position of the most profitable mobile phone manufacturer.

"With strong strength, high wholesale prices and strict cost control, Samsung has finally become the largest and most profitable manufacturer in the mobile phone industry." Neil Mawston of Strategy AnalyTIcs said, "For Apple, it is currently facing huge In order to face the turbulent competition and regain lost profits in the second half of 2013, Apple may release more low-cost iPhone models and smartphones with larger display screens. "

Apple ’s previous routines relied on older models to attract users who are cost conscious of choosing a mobile phone, but it is rumored that such a strategy will change: Apple CEO TIm Cook may consider launching a brand new low this fall Priced iPhone models to complement Apple ’s product line.

Throughout the world, a research report from IDC stated that the average unit price of smartphones will be reduced from US $ 450 (about RMB 2,759) in early 2012 to US $ 375 (about RMB 2,299). As mobile phone operators have reduced their subsidies for smartphones, many low-cost models have become popular in southern Europe, where the economy is sluggish, including Sony and LG.

In the fast-growing Chinese smartphone market, the sales of domestic mobile phone brands such as ZTE and Huawei are very optimistic. Samsung has won the world's most profitable mobile phone brand, this trend will also help Samsung fully blossom in the mobile phone market.

Strategy Analytics' research report shows that Apple's market share in the global smartphone market has dropped from 17% to 14%, the lowest in three years. Samsung's market share grew slightly to 33%, and the gap with Apple further widened. Samsung sold a total of 76 million smartphones in the second quarter, an increase of 27 million from the 49 million last year. Apple only sold 31 million units, less than half of Samsung. In addition, compared with last year, LG, ZTE, and Huawei almost doubled their shipments.

Whether Apple can work hard again, in the second half of FY2013, to turn the tide and create miracles, let us wait and see.

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