Samsung has become the world’s largest and most profitable mobile phone making Company. It has beaten even the Apple Company in sense of making profits. These days people prefer Samsung Galaxy handsets over the Apple Handsets. So Apple is losing its status as the most profit making company in the whole world. There is a strong demand of Samsung handsets in the world market which has made the South Korean multinational the leader in the financial terms for the first time in the world’s market.
The main reasons of being the world’s largest profitable mobile phone making company in the world for Apple was because of its high priced iPhone. But as of now the latest models of Apples are coming for such a big Price, the customers of this Company are no longer loving Apple leading to the downfall in its profit all over the world market.
Samsung has made a total profit of $5.2 bn which is far greater than the total profit made by Apple which is estimated by a Californian Company. According to its estimate Apple has reduced its profit from $4.6 bn in the last year to $3.2 bn this year. There is always a sudden increase in the Apple latest models which have created this situation. This continues increase in the price has reduced the average selling of its various iPhones.
The above shown trend in the Apple is also seen in the Samsung Company. However after the incoming of a new set of flagship Galaxy S4, this trend does not come down and thus make this Company the world leading profit making Company after so many years of its hardships and dedication.
Neil Mawston at Strategy Analytics said that samsung has become the largest and most profit making company by its various strategies like : Tight Cost Controls, high WholeSale Prices and many others. To overcome the losses which Apple is has got in the first half of this year, it is trying to get back on its platform by giving a tough competition to its competitors by lowering the prices of its latest models like for example the average selling price of an iPhone has fallen to $581, down from $613 in the first quarter.
Things which Apple is doing to gain back its original Place
Nowadays, Apple is doing the following things to become the most profitable Company once again after its first time defeat in Four Years.
- Trying to launch new iPhones with cheaper price with wide Screen.
- Selling most of its older models instead of launching new ones.
The overall market share of Apple has fallen from 17% to 14% globally. However statistics has told us that Samsung has reach its height by reaching to the edge of 33%.
How Samsung become the most Profitable Mobile Phone making Company
There were many factors which has made Samsung Company to become the most profitable Company of the world. One of the various reason is also the cutting down of subsidies on the different handsets in the depressed economies of southern Europe. This cut down in the subsidy has made a way out for the cheaper models made by the companies like LG and Sony to make their models popular in the market. Also, if we look at the fast expanding smartphone market in China, ZTE and Huawei are said to be selling very well in the market. These trend led the Samsung Company to fly in the Sky with no obstacles this year.