Apple Inc. has been dethroned by Samsung again in the all-important U.S. handset market. The Korean firm lost the title nearly a year ago when the U.S. firm released the big-screen iPhone 6 and 6 Plus. The new Galaxy S7 devices have helped the Korean firm to win back the top slot.
Apple still the most profitable
Numbers released by Counterpoint Research suggest that Samsung had a 28.8% share of the U.S. market in March, while Apple’s share declined to a mere 23%. LG acquired the third spot with a 17.1% share, while ZTE was at fourth with a 6.6% share, followed by Alcatel, claiming 4.5% share of the market.
However, in terms of profit, Apple is way ahead of Samsung, even though it has been observed that in the last few months, the momentum in the smartphone market has been swinging towards Seoul away from Cupertino. This switch at the top of the pile represents one more victory for Samsung, and it can use this for marketing the Galaxy S7 and S7 Edge devices.
Samsung’s two flagship handsets have been critically acclaimed, and the initial sales were so high that they helped boost Samsung’s first-quarter earnings, which had been slowly declining. The South Korean company’s marketing team is definitely going to be delighted with the data point of “outselling Apple.”
Momentum to continue for Samsung
The momentum for the second calendar quarter was already with Samsung, and it is becoming stronger. The company announced the upcoming Galaxy Note 6, yet another strong device that will go on sale in the autumn. This device might have to compete with the iPhone 7 Plus, it seems now.
Samsung can be expected to get a clear run through the next few months. The iPhone 6s family has been underperforming, and the iPhone SE does offer a solid upgrade, but there is nothing inherently new about it. It is likely that the iPhone 7 will offer a substantially different challenge on arrival.
The Galaxy S7 family of devices offers a clear run on the market to Samsung. The devices’ marketing will have a positive impact on the other handsets in the South Korean company’s portfolio, thus boosting overall sales. Meanwhile Apple is going through a rough phase as its iPhone sales for the last quarter dropped 16% from the previous year.
On Wednesday, Apple shares closed down 1.04% at $94.19. Year to date, the stock is down by over 12%, while in the last year, it is down almost 27%. the stock has a 52-week high of $132.97 and a 52-week low of $92.