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, its 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.
Whats 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 captured a remarkable 99 percent of
first-quarter 2012 handset industry profits. If thats 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 hasnt 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. Its Apple, isnt it?
When trying to determine why Apple and Samsung have been so successful in
the smartphone market, its best to remember the companies being discussed.
Apple is the worlds most popular brand, a company mainstream consumers trust
and one that fully understands what it takes to be successful. Isnt that
enough reason to understand Apples dominance in the smartphone market?
2. Design matters
If theres anything that can define both Apple and Samsung products, its
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, theyll have to be content picking up the scraps Apple
and Samsung leave behind.
3. Google has helped Samsung
Its
no secret that Samsungs 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 Googles seemingly strong
partnership with Samsung, and its 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, its
hard to find better name recognition than Apple and Samsung. 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.
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