Apple And Samsung Dominate The Mobile Market
Profitability is what sets the competition apart from each other. Apple is making the highest profits, accounting for 80 percent of the profit in the market, so they set the rules of the game. While companies that miss their profit mark are limited. For instance HTC endured a profitability setback and had to rethink product launches and sparked the emergence of the One line of smartphones, reports Roger Cheng for CNET.
Companies that were once at the leading edge of technology, such as Research in Motion, HTC and Nokia, now see themselves struggling in the market and see losses of market share as a result.
Many others have trouble setting themselves apart in the crowded Android market. They suffer competitive pressure and have trouble setting themselves apart from everybody else.
Samsung with its sheer size and market presence has the ability to stay ahead of its Android competitors. The company has created a flagship brand by using its wide distribution chain, marketing heft and carrier partnerships. The Samsung Galaxy S II is especially popular.
Apple too has set itself apart. Apple´s iOS operating system and iPhone brand attracts many customers. At AT&T and Sprint Nextel the iPhone outsells all other brands combined. At Verizon it sells at least as well as all Android smartphones combined. These sales figures help consolidate Apple´s strength with US carriers.
Michael Walkley, of Canaccord Genuity, also sees good news for Apple. He posted to Forbes: “We maintain our belief Apple is well positioned for strong C2012/13 sales and earnings growth driven by new product introductions, including the new iPad, the pending refresh of MacBook Air/Pro, an LTE iPhone likely in Q3/C2012, and potentially Apple TV exiting C2012“¦”