Profitability Gap
Samsung Electronics topped the global smartphone market last month after having beaten by Apple in the fourth quarter of last year. This is because Samsung Electronics released its new flagship smartphones earlier than before. However, the profitability gap between Apple and Samsung Electronics is still wide.
Market research firm Counterpoint Research reported on March 29 that Samsung Electronics and Apple accounted for 20 percent and 17 percent of the global smartphone market in February this year, respectively. In the fourth quarter of 2020, Apple overtook Samsung Electronics for the first time in years with its iPhone 12 series.
Samsung Electronics could recapture the top spot through product release schedule adjustment and lineup expansion. The company released its flagship Galaxy S21 series a month earlier than before and the product reached a sales volume of more than one million units in 57 days. In addition, on March 17, Samsung Electronics held its first launch event for its inexpensive smartphones.
Nonetheless, Apple’s profitability still overwhelms Samsung Electronics’. According to market research firm Strategy Analytics, Apple and Samsung Electronics accounted for 79.7 percent and 15.7 percent of the total profit of the global smartphone market last year, respectively. This has to do with the fact that Apple’s main products are expensive and the company does not produce its products itself whereas Samsung Electronics develops and produces both expensive and inexpensive products.