Originally Posted by cnocbui
The average income in India is $1219, in China it's $2,100. The idea that Samsung is garnering the lions share of it's very substantial profits by selling $100 phones into these markets is ludicrous. Then there are the sales figures:
So that's 40 million in six months. If you want to consider that low sales , fine, but I wouldn't agree with you. There have been other sales figures announced which do indicate Samsung sells a lot of high end phones.
They sold a further 10 million Note 3s on top of those 40 million S4s
And since the argument is about the percentage of their profits coming from high end devices - don't jump up and down claiming these are channel sales, because it just doesn't matter to Samsung if the retailers dump them in the sea, so long as they are paid for them they make a profit. But somehow I doubt all those retailers world-wide are really ordering product they don't think there is a demand for and which they think won't sell.
I think a lot of companies would like to fail at selling high end phones the way Samsung obviously does.
This litle tid-bit is interesting:Since that article is about Samsung revising downward their expectations for sales of the S5, one could reasonably infer that previously, high end phones made up more than 35% of their sales.
That sounds about right. Thanks for figuring that out.
The big takeaway from these discussions is that it's rather difficult to compare Apple and Samsung. They are two vastly different smartphone manufacturers.
Samsung sells low-end, mid-range and high-end phones. They are a full-line manufacturer.
On the other hand... Apple's phones start
at $450... but most of their sales are actually their $650+ models. Apple has a much narrower market.
Apple has ZERO percent of the low-end market... but that's not exactly a negative. They've just never chosen to play in the low-end market.
play in the low-end market... but that's not a bad thing either. Just different.
Samsung is the largest smartphone manufacturer by volume. They got there by selling a lot of phones. As it turns out... 35% of their phones are high-end... and the other 65% is mid-range and low-end models.
As I've said before... that's not a bad thing. It's just funny that Samsung is always touting the sales of their Galaxy S line... when the bulk of their sales are NOT those phones.
I guess it's not sexy to talk about your low-end sales.
The topic was raised earlier that Samsung sells phones that cost more
than the iPhone... and I pointed out that Samsung also sells phones that cost much less
than the iPhone.
And it's looking like most of Samsung's sales are actually their cheaper, non-flagship phones.