Apple, Samsung Dominate the Smartphone Market: 10 Reasons Why

 
 
By Don Reisinger  |  Posted 2012-05-02 Email Print this article Print
 
 
 
 
 
 
 

NEWS ANALYSIS: Apple and Samsung are generating the vast majority of the profits produced in the mobile handset market. How have these two very different companies with vastly diverse mobile products managed to achieve such a lofty market standing?

When evaluating the smartphone market today, it€™s hard to get excited about products from any other company than Apple or Samsung. It seems that countless vendors are trying their hardest to make a mark in the mobile space, but devices like the iPhone 4S and Galaxy S II continue to hold center stage. What€™s worse, the chances of that changing anytime soon seem slim.

In a recent study, Canaccord Genuity technology analyst Mike Walkley reported that Samsung and Apple have €œcaptured a remarkable 99 percent of first-quarter 2012 handset industry profits.€ If that€™s not impressive enough, consider that between them, Apple and Samsung own the majority of the smartphone space, leaving only scraps for the others. Simply put, Apple and Samsung have cornered the smartphone market.

But how did this happen? More importantly, why hasn€™t anything been done on the part of other vendors to stop it?

Read on to find out why Apple and Samsung are dominating the smartphone market.

1. It€™s Apple, isn€™t it?

When trying to determine why Apple and Samsung have been so successful in the smartphone market, it€™s best to remember the companies being discussed. Apple is the world€™s most popular brand, a company mainstream consumers trust and one that fully understands what it takes to be successful. Isn€™t that enough reason to understand Apple€™s dominance in the smartphone market?

2. Design matters

If there€™s anything that can define both Apple and Samsung products, it€™s stellar design. Both companies know how to deliver good-looking products that compel consumers to buy. Until other companies can offer up something with a fresh, handsome look, they€™ll have to be content picking up the scraps Apple and Samsung leave behind.

3. Google has helped Samsung

It€™s no secret that Samsung€™s success over the last year, especially, has been due in part to Google and the Android operating system. The search giant made the Samsung Galaxy Nexus one of its premier Nexus devices, effectively legitimizing it in the marketplace. Add that to Google€™s seemingly strong partnership with Samsung, and it€™s clear why the companies have been so successful working together.

4. Name recognition is vastly important

Although Motorola and HTC might be well-known in some circles, it€™s hard to find better name recognition than €œApple€ and €œSamsung.€ Both brands are extremely popular among consumers and have found a way to enter the daily lives of people through a host of products. Without name recognition, Samsung and Apple would be like everyone else.



 
 
 
 
Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.
 
 
 
 
 
 
 

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