Apple Inc. Steals Smartphone Market Share From Samsung

Apple Inc. (NASDAQ:AAPL) may be maneuvering competitor Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) right where it wants it. New data from research firm Counterpoint continues to show that Apple’s iPhone 5S is outselling Samsung’s Galaxy S5, which is newer than the 5S.

Samsung falls to Apple

The Telegraph reports that Apple sold 7 million iPhone 5S handsets around the globe in May, while Samsung sold 5 million Galaxy S5 units in the same month. The firm also indicated that Apple’s smartphone sales have continued to be strong in spite of anticipation around a larger-screened iPhone 6 coming this fall. Counterpoint’s survey covered 35 different markets or almost 90% of global smartphone sales.

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Data from Kantar Worldpanel indicates that the iPhone 5C made up 11.1% of U.K. smartphone sales during the same month, while the 5S made up 11%. Samsung’s Galaxy S5 made up only 9% there, however.

Counterpoint also found that Samsung’s Galaxy S5, which has only been on the market since March, isn’t holding up as well against the current iPhone as the Galaxy S4 did last year. Apple and Samsung were about on par with each other last year, with each company’s flagship phones—the iPhone 5 and the Galaxy S4—selling around 7 million units every month.

Samsung disappoints users

Counterpoint analyst Tom Kang said Samsung’s critical error was the Galaxy S5 because it did not hold up to expectations. He said the handset’s display quality wasn’t as good as many were hoping and that Samsung disappointed fans yet again by using a plastic case. Kang said Samsung will have to move forward focusing on its next products in order to win back consumers.

Apple isn’t the only competitor posing a threat to Samsung, according to other research firms. Data from Canalys indicated that during the first quarter, the Korean electronics giant’s market share declined from 20% last year to 18%. Meanwhile Chinese competitors Xiaomi and Lenovo Group Ltd. (OTCMKTS:LNVGY) (HKG:0992) saw their shares of the market increase.

Analysts believe that the reason Samsung is losing out against less expensive Chinese competitors is because the company’s offerings do not present enough of an enticement to consumers to warrant them paying a premium for its handsets.