Samsung leads Apple in smartphone sales, albeit less profitable

Samsung Electronics Co. solidified its position as the world’s top smartphone vendor by volume in the second quarter, widening its sales gap with Apple Inc. but is much less profitable than its US rival, data showed.

The South Korean tech giant scored a 20% market share by selling 53.3 million smartphones in the April-June period, according to market tracker Omdia.

The sales volume is down by 8.9 million units from a year earlier. With that figure, Samsung retained its top post for two straight quarters. In the fourth quarter of 2022, Samsung conceded its market leadership to Apple.

Apple ranked second by selling 43.2 million smartphones in the second quarter, garnering a 16% market share. Its sales volume decreased by 5.7 million on a year-on-year basis.

Although Samsung dominated Apple in terms of sales volume, its profitability was just one-seventh that of Apple.

According to Counterpoint Research, Apple’s operating profit from smartphone sales reached $11.05 billion in the second quarter. In the same period, Samsung’s operating profit from smartphone sales was estimated at $1.56 billion.

In a bid to expand its market presence, Samsung has focused on sales of mid-tier smartphones, including the Galaxy A and M series. Apple has mostly targeted the high-end market, analysts said.

Data from Consumer Intelligence Research Partners showed the average iPhone selling price has risen to $1,000 this year from $802 in 2019.

GALAXY Z FLIP5, FOLD5 TO TAKE ON NEW IPHONES

Samsung plans to boost its profit margins with the release of high-end products – the Galaxy Z Flip5 and the Z Fold5 – due on Aug. 11.

The Flip5 with 256-gigabyte storage capacity will retail at 1,399,200 won ($1,100) and the Fold5 at 2,097,700 won. Compared to their previous models, they are 40,000 won and 90,000 won higher, respectively.

Samsung aims to sell more than 10 million smartphones, led by the latest Z series, this year.

Apple’s new smartphone, the iPhone 15, set to hit the market next month, will also be priced higher than its predecessors.

The iPhone 15 with 128 GB capacity will be about $100 more expensive, according to Bloomberg News.

Samsung pins high hopes on the new Galaxy Z foldable smartphones, unveiled at its Galaxy Unpacked 2023 in Seoul last month.

TM Roh, president and head of Samsung’s Mobile eXperience (MX) division, said foldable phones will account for one-third of the company’s domestic sales of its flagship Galaxy smartphone series this year.

As Apple opened its latest Korean flagship store in the bustling neighborhood of Gangnam in March, Samsung fought back with its own stylish store just a 10-minute walk from the Apple Store to lure back young consumers, known as MZers.

Write to Ik-Hwan Kim at lovepen@hankyung.com

In-Soo Nam edited this article.