Another day, another shot fired between the boats of Apple and Samsung, and this time it's in favour of the Galaxy S3 and S4 maker. Last week it was announced that Samsung had surpassed Apple in terms of profitability, becoming the most profitable phone maker in the world. This means the end of Apple's four year reign at the top, beginning with the rise of the iPhone. Samsung now has its own powerhouse in the Samsung Galaxy S3, and the recently released Samsung Galaxy S4. But how exactly did they, being Samsung, do it?
It came down to last quarter. Apple posted $4.6 Billion in profit in the second quarter this. A handsome chunk of change for sure. Samsung managed to top that though, bringing in $5.6 Billion dollars in profit in the second quarter. The recipe to their success? strong volumes, high wholesale prices, and tight cost controls. Those factors combined pushed Samsung into the mobile profits lead, knocking the giant, apple, out of top spot for the first time in 4 years. But why did Apple sink? Apple has failed to deliver a wide variety of phones at lower price points, something they are now under a tremendous amount of pressure to do.
So what's next? Well, Samsung is here to stay. While a lot of this has to do with Apple falling, Samsung has also risen up to take control of their share of the market. With that being said, I believe Apple is just one announcement away from regaining their post at the top. Why? Because no matter what Samsung does it will never be as cool as Apple. Plain and simple. The only problem with Apple right now is that they have gone too long between devices, but people will forget that when they roll out their next iPhone or iPhones later this year.