Samsung Loses No. 1 Sales Spot in India to Micromax
A successful launch for the next Galaxy will be important for Samsung, which continues to try to battle out of a slump caused by cheap smartphones from China and the release of the new and improved iPhone 6 models from Apple. Samsung has been losing market share and revenue to its rivals and is already in the midst of plans to pare back its model line and cut production costs to better compete, according to earlier eWEEK reports. Samsung has been getting hit hard since the release of the new iPhone 6 models, according to a recent consumer mobile phone market analysis report from the Chicago-based Consumer Intelligence Research Partners (CIRP) analyst firm. Apple captured about 50 percent of the fourth-quarter 2014 smartphone sales in the United States, which helped the company handily beat its closest competitor, Samsung, by a 2-to-1 margin, the report stated. Samsung captured 26 percent of the market, followed by 11 percent for LG, 4 percent for Motorola and 2 percent for HTC, according to CIRP's figures. Nokia had 2 percent of the sales, while Amazon had 1 percent. Recent data from Counterpoint Research showed that Apple iPhone sales hit a major high point in November 2014, when the company marked 20 million global iPhone sales in one month for the first time. Apple's good news has been bad news for Samsung on a global basis. Samsung's 2014 fourth-quarter earnings were better than its third-quarter figures, but full-year profit and sales were down significantly from 2013. For the fourth quarter ended Dec. 31, 2014, Samsung posted revenue of $48 billion, up 11 percent from $43.2 billion in the third quarter. Net profit for the fourth quarter was $4.8 billion, up 26.3 percent from the $3.8 billion in the third quarter.In contrast, key rival Apple announced record-breaking first-quarter 2015 earnings on Jan. 27, with $74.6 billion in revenue and $18 billion in net profits, fueled largely by sales of the latest iPhone 6 and iPhone 6 Plus smartphones, which were released last September. The $74.6 billion in quarterly revenue was a 30 percent increase from $57.6 billion in the same quarter one year ago; in that interval, net profit rose 37 percent to $18 billion from $13.1 billion. Apple's iPhone revenue in the quarter totaled $51.2 billion, up from $32.5 billion for the same quarter one year ago. During the period, Apple sold 74.5 million iPhones worldwide—an increase of 46 percent from the 51 million iPhones Apple sold in the same quarter a year ago.
The $48 billion in fourth-quarter revenue, however, was down 12 percent from $54 billion in the same quarter one year ago. Full-year 2014 revenue dropped 10.6 percent to $188 billion from $208 billion the year before. The company posted a fourth-quarter net profit of $4.8 billion, down 37.5 percent from $6.6 billion one year ago. Full-year 2014 net profit was $21.28 billion, down 30 percent from $27.7 billion the year before.