Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) still dominate the U.S. smartphone market, but BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is no longer in third place, according to the most recent survey from Canaccord Genuity.
BlackBerry no longer number 3
More and more signs have been pointing to BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) and losing its third place position in the smartphone market, so this survey is just the latest nail in the company’s coffin. Other reports have suggested that Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) is usurping BlackBerry’s third place position, but this survey is less clear about which company might replace BlackBerry for third.
Apple still going strong…
Canaccord Genuity analyst Michael Walkley did a July industry survey to come up with the data for his report, and he said one thing is still clear. Apple Inc. (NASDAQ:AAPL) and Samsung continue to dominate market share in the U.S. The iPhone 5 and the Galaxy S4 have been selling well over the summer months, according to Walkley. In fact, sales have been going so well for the two companies that together, they have captured a combined 103 percent of the industry profit.
…But Samsung beat Apple
During the second quarter of the year, Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) sold 72.5 million smartphones, while Apple Inc. (NASDAQ:AAPL) only sold 31.2 million. However, although Samsung is selling more handsets, Apple remains supreme in terms of profits. The company captured 53 percent of the profits in the industry.
Entry level smartphones should do well
Matthew Braga of the Financial Post notes that customers migrating from feature phones to smartphones seem to be making up the bulk of new smartphone sales so far this year. This is why a low cost iPhone would likely do well, especially if Apple Inc. (NASDAQ:AAPL) can get it out before the end of the year.
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s new Z10 and Q10 handsets have not been selling well, as the company’s most recent earnings report showed that it sold only 6.8 million handsets in the second quarter. It appears as if the company’s high-end handsets are just no match for the high priced and well-entrenched likes of Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930).
Some are questioning whether BlackBerry will be able to turn things around with the release of its Q5 handset, which is less expensive than the first two, but Cannacord Genuity analysts think that even with the Q5, BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) will continue to hold less than 3 percent of the world’s market share this year.