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Is Samsung eating up Apple’s market share?

4 May, 2016 Apple


The answer to that question is yes, if the latest market reports and the financial reports of both the companies are taken into account. Apple's financial reports for Q1 2016 suggests that the company experienced a huge downfall in terms of iPhone shipments and the following quarter will once again experience an even sharper decline due to a proportionate channel inventory amendment.


Officially though, Tim Cook explained the situation by blaming it on an insufficient number of people's willingness to upgrade to the current gen of iPhones, as compared to when the iPhone 6 was launched. There was also a mention of "macroeconomic weakness" and according to him; the number of people who switched from Android to iPhone was at an all time high in the first quarter of 2016.


In spite of all the explanation, there is evidence that Apple might actually be losing a great deal of the market to its Korean competition. In a year-over-year comparison, Apple lost 16% of its Q1 sales from last year while Samsung's sales increased by 8%. There is little chance of Apple seeing much improvement this year as even in the last quarter of 2016, analysts are predicting a fall of 9.1% in year-over-year comparison. Samsung on the other hand is expected to see significant year-over-year increase in sales throughout all the quarters.


A logical conclusion from these results would be that Apple is losing share to Samsung in the high-end segment of the smartphone business, mainly due to the success of the Galaxy S7 and the Galaxy S7 Edge. In fact, it is not only Apple which is losing smartphone business to Samsung, but other major Android manufacturers like LG, HTC, and Sony are all on the same boat. From where things are right now, Apple's biggest chance to get back at least some of its lost business is a successful iPhone 7 launch.


Author: Saikat Kar (Tech-journalist and enthusiast)

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