Apple beats Samsung to become world's No. 1 smartphone maker

Los Angeles Times ^ | Wednesday, March 4, 2015 | Andrea Chang

[Star Traveler]

Apple topped Samsung in smartphone sales for the first time since 2012, selling 74.8 million units in the fourth quarter of last year, surpassing Samsung as the No. 1 smartphone maker globally.

Apple's success was driven by huge demand for the iPhone 6 and 6 Plus in the U.S. and in China, according to research firm Gartner.

Samsung's performance in the smartphone market deteriorated further in the fourth quarter of 2014, when it lost nearly 10 percentage points in market share," Anshul Gupta, principal research analyst at Gartner, wrote in a report released Tuesday.

"Samsung continues to struggle to control its falling smartphone share, which was at its highest in the third quarter of 2013. This downward trend shows that Samsung's share of profitable premium smartphone users has come under significant pressure."

Part of the problem for Samsung: The market is bifurcating. Apple commands the high-end, aspirational customer while a fast-rising crop of Chinese phone makers are snapping up the more price-conscious buyer. Samsung is caught in the middle.

[Blue Ink]

Good for Apple. They’re going to need the cash to offset losses when their stupid Dick Tracy watch that no one over 40 can see tanks worse than the Newton.

[jkeith3213]

What I don’t understand about this article, is that it is written as if apple sold more smartphones than samsung for the year, when it was only for the fourth quarter.

For the entirety of 2014, samsung sold over 116 million more smartphones then apple. Source Table 2 :
http://www.gartner.com/newsroom/id/2996817

I’m not complaining about apple beating samsung for the quarter, I was just confused at first.

[Star Traveler]

You know ... in the recent past, many people didn’t think Apple could pull it off for the iPod, for the online download music store - iTunes, for the iPhone ... but these people weren’t “thinking different” like Apple was. It turns out they were wrong. In fact for the last thirty years, I’ve seen a certain “crowd” of people and writers who think Apple is going out of business, is going to lose money bigtime, has a product that will never sell ... and just about every negative idea you could ever come up with, regarding Apple.

The problem with this crowd ... who have been saying this for the last thirty years?? Simply that they’ve been wrong in these ideas for the last thirty years.

I certainly expect them to keep it up for the next thirty years and to be just as wrong as they have for the last thirty! ... LOL ...

I just hope you’re not in with that crowd. I would hate to see you wrong for the next thirty ... :-) ...

[Star Traveler]

These writers may be going on the basis of some information that I saw posted on one of these Apple threads. It showed that Samsung’s sales has been slowing and reversing over the last six quarters. So anyone that is writing on this subject regularly would have known that Samsung has been going downhill for the last six quarters. Basically that trend with Samsung over the last six quarters ... finally “crossed the line” and Apple’s sales kept going up.

[Swordmaker]

For the entirety of 2014, samsung sold over 116 million more smartphones then apple. Source Table 2 :

There is only one big problem with the claims of Samsung selling more "smartphones" than Apple sold. They NEVER did. Gartner counts ALL of Samsung's phone shipments as if they were "smartphones", but they were not all smartphones. Samsung never broke out their shipments of phones by the categories they sold. . . which were not and have never been all smartphones.

In late 2013, Judge Lucy Koh forced Samsung to reveal the actual mix of phone products they sold during discovery for the Apple v. Samsung patent infringement trial. . . figures they have never revealed before. When Samsung produced their actual shipped numbers, it turns out that of those numbers they have been reporting, only ~30% were smartphones. The other ~70% were divided among limited function Android "Feature Phones" and "Dumb Phones with Android OS" in this approximate product mix:

• ~ 30% Samsung Phones Shipped — Android or Windows Smartphones which were a computerized device with a phone connected, including the ability to connect to the internet with ability to see full desktop web display, download apps from a centralized store, have a high quality camera/video system for recording and playing back images and to stream said images to large format monitors or TVs, sending and receiving Multi-media messages, email, large capacity storage, downloading and playing either streaming or stored media including movies, music, podcasts, had WIFI capability, Bluetooth capability, and in general is a computer with a phone attached. Minimum onboard storage 8GB or more.

• ~ 40% Samsung Phones Shipped — "Feature Phones, running Android operating systems with selected applications preloaded, but no capability to add more apps. Games limited to those already pre-loaded, as are any utility apps. Access to the internet is limited to Mobile web, email, MMS, limited camera and video. Depending on the level of Feature phone may have the ability to view streaming video and movies, but not store movies. On board storage very limited. Storage under 4GB.

• ~ 30% Samsung Phones Shipped — Android Standard or Dumb phones for markets without Internet connections. No internet connection at all, limited email over cellular connection, Messaging only, no MMS, limited camera or video on some models. Flip or candy bar phones, messaging by ten key pads. Sold in all markets but primarily for 3rd world markets.

In the last year, Samsung revised that mix by emphasizing more of the two bottom tiers over the smartphone tier. . . and went to only 19% smartphone's shipped by the last quarter. . . and increased the Feature and dumb phone mix.

Analysts also find that many of the 225 Android phone makers do not produce smartphones at all. . . but concentrate on the middle and bottom tier Feature and mostly dumb phones where they compete on price. Many of them turn out white and black box phones that others put their brand names on. . . but they are not smartphones. These phones are sold to the 60% of the world's population that has never connected to the Internet. . . and cannot because it is just not available in their area while cellular phone service is.

[Blue Ink]

No, I’m a fan. From the second I saw the ipod, I was like GOTTA HAVE. After I tried my first Mac at work, I knew I would never buy another PC. Iphone is the best cell I’ve ever owned.

But I just don’t know who the customer is for the iwatch. I’m a loyal customer, and if I have no interest, that says to me they’ve got a big problem. I don’t think Apple goes out of business, but I think they need to get rid of Tim Cook — he’s just coasting on Jobs’ legacy.

I see this period in Apple history as analogous to the fifteen years of failure Disney went through after the death of Walt Disney. Eventually, they found their way back. Apple will survive... but they need a new leader to jumpstart the creativity and inspire the troops after what will surely be a disappointing launch for iWatch.

[adorno]

What you posted only goes to demonstrate that, Apple is mostly dependent on iOS, and mostly through the strength of one product, iPhones. The rest of the Apple stuff you posted, should not even be mentioned when it comes to actual products and services which add any meaningful sales and earnings to Apple’s bottom line.

You also demonstrated that, Samsung is a hugely diversified company, with a huge array of products, all of which are known to generate huge sales to Samsung.

So, Apple is much bigger now, but, in a very precarious position with basically one product driving their earnings. Samsung get earnings from a huge array of products. Conclusiong, Samsung has a product line which can keep Samsung around for decades, while, when the iPhones start to lose luster and sales begin to dwindle, Apple will be in dire straits.

[amigatec]

Did you read what I wrote?

I guess you didn't. I said Apple products are designed to work together. My iPhone is an extension of my Mac ALL my Aplle devises are designed to work together.

And do you really think Samsung sells enough washers and dryers to make a dent in their bottom line?

When I buy a washer or dryer or refrigerator, I look for either a Whirlpool or Frigidaire, brands that have a name I can trust.

[GeronL]

Both companies make fine products

[adorno]

Apple products are NOW designed to work together, after Microsoft announced YEARS AGO that they would create their complete ecosystem to work with all devices and platforms, like smartphones and tablets and PCs and gaming systems and Android and even iOS devices. Microsoft is on the verge of releasing Windows 10, which will work seamlessly across all types of devices in the Windows ecosystem. Apple will still have its problems when iOS and OSX are separate, while trying to shoehorn ‘togetherness’ into its ecosystem. Apple is mostly about perception than reality. The only time that Macs work well for productivity is when people use Parallels to use Windows in their system.

The Mocrosoft ‘smartwatch’ was released many months ago, and while it’s still not popular, it was designed to work across all OS platforms, including Windows Phone and Android and iOS. When the Apple watch becomes available, it will be a peripheral device for iOS devices only; won’t work with any other OS, thereby locking people in to Apple.

Also, Samsung sells enough of everything they make to stay a profitable company, and a huge one. They are not a one-horse show, and will be around long after Apple becomes just another ‘also ran’.

When I buy an appliance, I don’t particularly look for any specific brand, since, most of them are good enough for what I and most people need them for. In my kitchen, I have GE and Frigidaire appliances, and my washer and dryer are Kenmore. I’m not fanatical about any brand. I go for what performs well and meets my needs. Which is why I would never be fanatical about anything from Apple or Google or Microsoft. I have smartphones and tablets and PCs from different makers. Heck, my daughter and husband each have iPhones and one iPad, and my wife has a tablet powered by Android, and her LG G2 is also Android, and my laptops and desktop are Windows, from different makers, with Intell and AMD inside.

IOW, I am very practical and frugal and smart about my choices. I don’t love any company or product, and I would never be a zealot like you guys are about Apple.

[amigatec]

Apple products are NOW designed to work together, after Microsoft announced YEARS AGO that they would create their complete ecosystem to work with all devices and platforms, like smartphones and tablets and PCs and gaming systems and Android and even iOS devices. Microsoft is on the verge of releasing Windows 10, which will work seamlessly across all types of devices in the Windows ecosystem. Apple will still have its problems when iOS and OSX are separate, while trying to shoehorn ‘togetherness’ into its ecosystem. Apple is mostly about perception than reality. The only time that Macs work well for productivity is when people use Parallels to use Windows in their system.

How many times has MS made such announcements and it was FUD. They released Windows 8 and look at what a cluster that was. It's also VERY clear you don't know a damn thing about IOS and OSX.

Just admit it, you hate ANYTHING Apple.

Let me ask you this, have you ever owned ANY Apple products?

[adorno]

I don’t hate Apple. Apple is not a living species of any kind that I could get to hate.

What I do hate is the cultist behavior that so many people exhibit towards all things Apple, like you are doing. I can hate the behavior, which borders on delusion, and still appreciate what the company produces, which I actually do. I like the iPhones and the quality of Apple gear, but, I still think it stupid for people to behave as they do towards Apple or any of its devices.

Comprende?

[amigatec]

Let me ask you again, have you ever OWNED ANY Apple products?

[amigatec]

What I find startling is your Fanatical hatred of Apple. You seem to think if anybody buys a lot of Apple gear, that they are some kind of “Cultist”. I use Apple products because they work. ALL my Apple Gear works together just fine.

I don't worship Apple or any other company I just use products that work. I used to dislike everything Apple just like you do. I was a diehard Commodore fan for years, (look at my user name, it is taken from the Commodore Amiga), after Commodore went bankrupt, I went to Windows for a few years, and then Linux.

But after buying a few Apple products I can see why they have the market share they have. I don't have to tweak things to get them to work. I don't have to reboot everyday, I don't have to worry about spamware, I don't have to worry about virus infecting my computer. I used to spend a couple of nights a month just cleaning it up. And a couple times a year I would reinstall Windows and all my data.

I had an Android phone once, it was a piece of junk, yes it was a Samsung. I have had 4 Samsung phones, 2 were personal, and the other 2 were provided by my Employer. All 4 didn't last a year.

My Android phone lasted about a week before acting up the first time, it would go to sleep and not wake up. I had to pull the battery and do a cold boot to get it to come out of it, and had it replaced and the new one still did the same thing. There was only one upgrade offered for that phone ever!! I had to jump through hoops and barrels to install it. After a year it refused to hold a charge, even with a new battery. And trying to backup the data was a total nighmare. My pictures had to be downloaded one at a time, my contacts had to be backup through my Cell provider. The Android Phone didn't work with Windows, Linux, or Mac. After the upgrade I had to reinstall all my apps, I lost a bunch of phone numbers, and all my app settings.

I replaced it with a Samsung flip phone, it too lasted about a year, same thing happened with it, the battery refused to hold a charge. Both of work phones the sound quality dropped off until it sounded like you had a mouth full of marbles.

I went with the iPhone and have never had any problems with it. I shut down my Windows and Linux PC’s and bought a Mac. I have never looked back, now I work with my Computer not on it.

Microsoft has a very, very LONG way to go to catch Apple, MS has never been an innovator, they have stolen or bought almost every piece of technology they have. Windows is a bunch of patched together programs that were never designed to work together. MS has made promises before about how they are going to create the latest and greatest software in the world and they ALWAYS fall short.

You can continue to believe in your own mind about some “Mac Cult”, but the users of Apple products just want something they don't have to mess with just to get to work.