According to ABI Research data released on Friday, June 15, Samsung and Apple grabbed 50 percent of the global smartphone market in the first quarter, and as much as 90 percent of its profits. The real question remains whether a third contender can break the dominance of the two giants and pose a real challenge, noted ABI.
While Apple and Samsung enjoy the clean air at the top, Nokia and Windows Phone are in for some more discouraging news. "At this point in the year, Nokia will have to grow its Windows Phone business 5000 percent in 2012 just to offset its declines in Symbian shipments," said Michael Morgan, ABI Research senior analyst for devices, applications & content, in a press release.
Smartphone Shipments
Just a few months back, Samsung snatched the crown from the once-undisputed-king Nokia as the world's bigger mobile maker, and now it has emerged stronger than Apple in the smartphone market. Samsung shipped 43 million smartphones in the first quarter this year, while Apple shipped 35 million. Nokia and Research in Motion (RIM) raced closely for a distant third spot, with 11.9 million and 11.1 million units shipped, respectively. Meanwhile, Sony trailed with 7 million shipments, followed by Huawei with 6.8 million and ZTE with 4.9 million shipments.
According to ABI Research, Samsung and Sony saw sequential growth in the quarter, while Cupertino, California-based tech giant Apple did not, although it has a strong market position. On the other hand, Apple's iPhone 4S launched in the fourth quarter of 2011 generated impressive sales of 37 million iPhones, then slightly declined to 35 million in the first quarter this year.
Make It or Break It
Meanwhile, smartphone reach in North America and Europe has come to top 50 percent, urging phone makers to turn their efforts towards China, one of the biggest ememrging markets. "As Nokia's market share in China plummets, the competition to fill this power vacuum has the potential to make or break smartphone OEMs currently struggling with profitability and differentiation," noted Jeff Orr, practice director of devices, applications & content at ABI Research.
Moreover, another player will find it even more difficult to emerge as a true third contender once the two giants release their new smartphone offerings. Samsung's Galaxy S3 smartphone is set to hit Sprint and T-Mobile on June 21, while Apple is expected to release its next-generation iPhone later this year, most likely in the fall.
