The technology and anti-Apple headlines have been horrendous for our favorite Cupertino company since last fall. iPhone sales are down. iPhone sales are up (the kind where products get discounts, bundles, and promotions). To hear critics, analysts, and market prognosticators tell the story, Apple (again) is on the ropes and in danger of becoming a niche player (again) and cannot innovate any more.
Sad, Apple. Sad.
Except none of those memes are accurate. The smartphone industry has reached an expected plateau and that means growth just isn’t what it used to be.
Sad, Apple. Sad.
What about Samsung? And all those Chinese knock-off smartphone makers? Remember, the world is full of lies, damned lies, and statistics, but somewhere out there you’ll find some real math; real numbers that tell a real story.
Felix Richter came up with some insightful analysis based upon real word numbers that compare a couple of the world’s most profitable technology giants. Samsung and Apple.
Samsung retained its lead in the smartphone market in 2018, the company has found itself in a difficult spot recently. With Chinese vendors grabbing market share in the lower-price segment and Apple remaining the preferred brand of many premium buyers, Samsung is fighting on two fronts, amid challenging market conditions that don’t make things any easier.
Facts? Samsung sells more smartphones than Apple. Meanwhile, Apple makes money money on smartphone sales than Samsung. The reality based headline?
Apple’s Mobile Business Revenue Is Now Double The Size Of Samsung
Whoa! Where did that come from?
In 2018, sales of Samsung’s Mobile Communications business, which also includes tablets and wearable devices, declined by 7 percent to $86.9-billion, the lowest it has been since 2012.
That doesn’t sound promising, especially since Samsung is in second place for revenue and profits.
What does that mean?
Apple’s iPhone business alone generated $157 billion in sales over the same period, and adding the iPad to the calculation, Apple’s mobile business is now twice as large as Samsung’s.
It means facts matter.
Numbers that can be counted vs. guessed (marketshare is the prime example touted ad nauseam by the anti-Apple screed makers, nattering nabobs of negativism, and members of the technorati elite politburo.
There was a time, way back in 2013, when Apple and Samsung’s mobile products were neck and neck in revenue (Apple remains the profits leaders, thanks to wider gross margins), but not since.
Fact. Apple makes more money than Samsung in mobile devices. Not fact in evidence, but likely– Samsung makes more money on mobile devices than all other Chinese manufacturers. Combined.
What does that say?
Facts matter. Marketshare is not facts. Quarterly financials are facts put in evidence.
Apple just ain’t doing so bad because facts.