I think Daniel is absolutely right in talking about the article in business insider. Apple does mention their total revenue and number of iPhones sold. We can exactly get the average price of the iPhone Sold and we know by research the exact cost of making an iPhone. It is very easy to calculate the net profit of iPhone to be close to 30%.
In case of samsung which includes Smartphones, featured Phones, Tablet, PC, Laptops and other items. Samsung does not mention the no of smartphones sold or the revenue from different Price segments at all.
Apple Competes with Samsung with a small percentage of consumers which is the high end. Apple has not competed in the mid range and low range smartphones. So it would be stupid to even include all mobile phones, Tablets, PC & Laptops as only smartphones revenue.
It would be nice if Busines Insider can specifically find the sales & profit of samsung in the same high end segment were Apple Competes. You just cannot compare Apple & Oranges. If a BMW manufacturer cannot compete in the numbers of cars sold with low end cars comparatively to Toyota Corolla, Honda Civic and others.
I would suggest if Mr. Kovach from Business Insider can be truthful by comparing only in the specific Price Range Apple Competes.
Apple has a brand advantage over all competitors. Google as a brand has almost no hardware footprint and the Samsung brand still lags behind Japanese brands like Sony. People will pay more for products because of the brand recognition, implied quality and physical appeal. Apple also has the highest brand loyalty and largest direct customer base. No company can compete with the iPad in education and business, because the availability of applications and early market lead. Apple has not soiled itself with the commodity smartphone market, but has chosen to own the high end of the market and let Android vendors fight for the commodity business. Apple owns the high value customers, which is obvious if you look at spending after purchase of apps and services. Apple's strategy of growing their base of loyal high value customers is working.
, we have recently learned that Samsung’s sales figures for the S4 are much lower than they have reported. This is not the first time that Samsung has over-reported sales for their products.
From a Reuters article titled “Samsung analysts ask hard questions as S4 marketing charm wears off”:
“Woori Investment & Securities, one of South Korea’s largest securities firms, cut its outlook for Samsung’s earnings and target share price on June 5. It was the first to adjust its view.
A massive wave of downgrades has since followed, with forecasters including JPMorgan, Morgan Stanley and Goldman Sachs taking a harder look at their assumptions of how well the S4, Samsung’s latest Galaxy smartphone, would actually do.
Sales estimates for the S4 were slashed by as much as 30 percent, stirring investor concerns over Samsung’s mobile devices division – the company’s biggest profit generator.”
Previously, Samsung reported that 10 million S4′s “shipped” in the first month. This is the amount of S4′s that Samsung claims to have received orders for from resellers…. It is NOT the number of S4′s that were actually sold to end users, which as we’ve seen from the past, has been substantially lower than the number “shipped”.
In contrast, Apple gives actual sales figures for the iPhone, not units “shipped”. The iPhone 5 sold 5 Million to end users in the first 3 days, and that was in a limited number of countries before Apple expanded the distribution.
If, on the other hand, you were referring to “margins” as in “profit margins”, although Samsung has a lucrative business selling smartphones and tablets its profit margins are much lower than Apple’s on the iPhone and iPad. The majority of the profits from all smartphones sold worldwide are going to Apple.
There is a huge difference between “market share” and “profit share”. Anyone in business would be a lot less concerned about market share, and much more concerned about profit share.
The primary problem with using market share as a measure of business health is it provides no insight into the profitability of the product being sold.
John Kirk recently ran an article in which he asked and answered this simple question:
“Question: Company A has 25% market share and 75% profit share. Company Z has 75% market share and 25% profit share. Which company is doing better?
Answer: If you said anything other than company A, then you are dumber than a doorknob. Any intelligent person would take company A’s profit share over that of company Z’s market share.”