Samsung Electronics Co. narrowed the gap with Apple in the global smartphone market in the third quarter with its six-year high profit share.
The South Korean tech giant commanded 32.6 percent of profits worldwide from the smartphone market in the quarter ended September, up from 18.8 percent a year ago and 13.8 percent in the previous three months, according to market research firm Strategy Analytics on Friday.
This was the highest since the second quarter of 2014 when its share reached 37.9 percent in terms of profit.
Apple’s profit share in the latest quarter was 60.5 percent, down from 66.9 percent a year ago and 79.0 percent in the previous quarter.
Apple’s considerably higher profit share is largely due to the premiumization strategy of its iPhone series. It grabbed 77.9 percent of the world’s smartphone profits in 2018 and 75.0 percent in 2019.
Samsung also narrowed its sales gap with Apple to single-digit levels. In the third quarter, Samsung’s smartphone market share by revenue was 22.6 percent versus Apple’s 29.5 percent.
This is a notable improvement from the second quarter when Apple’s share was 35.0 percent and Samsung’s 17.3 percent. A year earlier, Apple had taken 33.8 percent of the market and Samsung 20.2 percent.
In terms of unit volume, Samsung came out on top with a share of 21.9 percent. China’s Huawei and Xiaomi followed with 14.1 percent and 12.7 percent, respectively. Apple stood fourth with 11.9 percent.
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