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Samsung currently most profitable handset vendor, analysts say

News   •   Jul 29, 2013 09:38 BST

It seems that this 2013 consumers are more interested in Samsung Galaxy devices such as the Galaxy S4. Analysts say that the Korean tech giant is currently the most profitable handset vendor.

The news comes to us courtesy of Strategy Analytics. The research firm’s analysts say, “Samsung became the world’s most profitable handset vendor in Q2 2013. Apple slipped into second position, as margins have been hit by lackluster iPhone 5 volumes and tougher competition in China.”

Strategy Analytics’ Senior Analyst, Neil Shah, said, “We estimate Samsung’s operating profit for its handset division stood atUS$5.2 billion in the second quarter of 2013. Samsung overtook Apple for the first time, which recorded an estimated iPhone operating profit of US$4.6 billion. With strong volumes, high wholesale prices and tight cost controls, Samsung has finally succeeded in becoming the handset industry's largest and most profitable vendor.”

Strategy Analytics’ Executive Director, Neil Mawston, said, “Apple’s reign as the world’s most profitable handset vendor lasted almost four years, from Q3 2009 to Q1 2013. Apple’s profit margin for its handset division has been fading recently due to lackluster 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. 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.”

With Samsung now becoming the most profitable handset vendor, does this mean that Apple is in deep trouble? Share your thoughts through a comment below.

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