Samsung Regains Its Smartphone Crown From Its Biggest Rival; However Still Battling

Posted on May 08, 2015
By Gaurav Aidasani

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Samsung may have retrieved its smartphone prominence from Apple, the former emerging as the world\\\'s largest smartphone seller by volume, but there’s still time to regain its golden years.

Samsung experiences a lopsided grin

\"\\"\\"\"Samsung though regained its top position, still sees its profit graph going down in its recent fourth-quarter earnings by 39%.

Samsung is experiencing pincer movement?

Neil Mawston, executive director of Strategy Analytics, says, “Samung is facing a \\\"pincer movement.\\\"

Competition on the upstream market end from Apple and downstream competition from Chinese upstarts like Huawei have put a hole Samsung\\\'s business.

\\\"It took many quarters for Samsung to respond to competitors creating products to attack,\\\" Mawston said. \\\"It will probably need a year or two more to completely recover.\\\"

Samsung has high hopes on its latest high-end products —Galaxy S6 and Galaxy S6 edge — to regain market share from Apple\\\'s iPhone 6 and 6+.

Apple assault

\"\\"\\"\"Samsung and Apple locked horns at the end of 2014 for the quantity of smartphones shipped.

Apple was able to rise due to unexpected decline in Samsung\\\'s S5 sales. The decline was very grave such that it’s still significantly lower than same epoch last year.

Meanwhile, Apple is showing rising earnings graph with its tight grip on the high-end smartphone market, also making significant growth on Samsung\\\'s territory with China sales growing by 72%.

Apple is also ahead of Samsung in terms of profit margins which is a crucial aspect. While Samsung sells more phones, Apple makes more money on per phone sold. Apple\\\'s gross margin is an enormous 40.8% while that of Samsung is 35%, though it’s scaling up.