Samsung is World's Most Profitable Handset Firm: Study.

by - 6:16 AM

NEW DELHI: South Korean handset maker
Samsung has become the world's most
profitable mobile handset vendor in the
second quarter of current year overtaking its
rival Apple, said a report by Strategy Analytics.
"Samsung became the world's most profitable
handset vendor in Q2, 2013. Apple slipped into
second position, as margins have been hit by
lacklustre iPhone 5 volumes and tougher
competition in China," the report said.
Apple was the world's most profitable handset
vendor for almost four years, from third
quarter of 2009 to first quarter of 2013, it
added.
"We estimate Samsung's operating profit for
its handset division stood at USD 5.2 billion in
the second quarter of 2013. Samsung overtook
Apple for the first time, which recorded an
estimated iPhone operating profit of USD 4.6
billion," the report said.
Market analyst and research firm Strategy
Analytics attributed growth of Samsung to
strong volumes, high wholesale prices and
tight cost controls,
"Apple's profit margin for its handset division
has been fading recently due to lacklustre
iPhone 5 volumes and tougher competition
from rivals. Samsung is performing well in the
US market, while Huawei, ZTE and other local
brands are growing vigorously in China," the
report said.
Apple is now under intense pressure to launch
more iPhone models at cheaper price-points or
with larger screens to fend off the surging
competition and recapture lost profits in the
second half of 2013, it said.
According to Strategy Analytics, 386 million
units of mobile phones were shipped globally
in the second quarter. Samsung occupied the
top slot even in terms of units that were
shipped.
The Korean major led global shipments of 107
million units accounting for 27.7 per cent
share, followed by Nokia with 61.1 million
units and 15.8 per cent share, Apple 31.2
million units, LG 17.8 million, Chinese firm ZTE
with 17.6 million unit in second quarter of
2013.
PTI

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