In the three months between July and September, Samsung
shipped 27.8million smartphones, making it the world’s largest smartphone manufacturer, grabbing the title from Apple.
IIn the period Samsung had a 23.8 per cent market share according to
research from Strategy Analytics, compared with 14.6 per cent for Apple
(selling 17.1m units) and 14.4 per cent for Nokia (16.8m
Of course these figures are slightly skewed, as a lot of
people held off purchasing an iPhone during this three month period, waiting
for the launch of the iPhone 4S in October. With indications of huge
early sales volumes for Apple’s latest phone, we could see Apple returning to the top
of the smartphone table by the end of the next quarter.
Samsung’s success in the smartphone market is down to phones
like the Samsung Galaxy S II as well as its ability to produce new phones
efficiently and on time.
While profits from Samsung’s mobile division more than
doubled to £1.41billion for the third quarter, overall profits dived by 23 per
cent thanks to its poorly performing chip manufacturing division.
The company’s bread-and-butter, the chip manufacturing division,
saw profits halve compared to the same period last year, down to £895m. Samsung
like other chip manufacturers has been hit by falling prices for memory chips
Samsung said it was “cautiously optimistic” about its fourth
quarter results, which will be boosted by the £870m sale of its hard drive
business to Seagate.
“Looking ahead into the fourth quarter, when industry
demand is traditionally at its peak, Samsung expects sales of mobile devices to
remain strong and flat-panel TV shipments to increase,” the company added
in an earnings statement.
While Samsung is currently the king-pin of the smartphone
business, others are lining up to topple them. Apple is leading the pack with
its iPhone 4S, but Nokia’s new line-up of Windows Phone handsets, including the
Lumia 800, could reinvigorate the Finnish company’s fortunes.
And with Sony taking full control of the Sony Ericsson
venture, Samsung is certain to face stiff competition in the smartphone space.
However it is already announced its next flagship device, the Samsung Galaxy
Nexus, as it looks to continue to dominate this fast growing market.