Samsung Sells More Smartphones than Apple
Samsung Electronics sold more smartphones in the third quarter than the industry titan Apple, the first time that has happened since Apple unveiled its popular iPhone in 2007. While that fact sounds unbelievable on the surface, insiders say they expected the numbers to shake out that way, given the timing of Apple's product launches and the variety of models and price levels available through Samsung.
Apple sold a reported 17.1 million iPhones in the July-through-September period, while Samsung moved 27 million phones, according to analyst estimates. The biggest reason Apple was passed in the quarter is that it didn't have a new phone out. The iPhone 4S, the company's latest model, didn't debut until after the quarter ended, so its sales were not included in the data for quarter 3. And devout Apple fans, ravenous to get their hands on the new offering, held back on buying older models.
While Samsung surpassed Apple last quarter, it will have a tough time hanging on to the top spot in the fourth quarter as Apple said it sold more than 4 million units of the iPhone 4S in just its first weekend of availability. While the company will certainly not maintain that type of torrid pace throughout the quarter, there are certainly still millions of consumers waiting to get their hands on Apple's latest toy.
While Samsung outsold Apple, however, it's very possible that Apple earned more profit from smartphones. That is because Apple operates on, and dominates, the high-end smartphone market, while Samsung currently offers 40 different models at all different price levels. Apple's profit margin on its iPhone is far-and-away the highest in the industry, and helped Apple become the most valuable tech company in the world.
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