Samsung rises as Apple loses more smartphone marketshare - The Australian Financial Review

Overall worldwide mobile device figures showed the rates of growth for Samsung and Apple slowed in the second quarter. Photo: Reuters Negar Salek The performance of Apple's upcoming new iPhone will take on added importance after new figures showed its arch rival Samsung dominated worldwide smartphones sales in the second quarter of this year, while its own numbers tumbled. Data from research firm Gartner shows the South-Korean giant moved 71 million smartphone units in the quarter compared to 45 million in the same quarter last year, increasing its market share by a steady 1.4 per cent. The iPhone's recent fall from grace continued as Apple's market share dropped down from 18.8 per cent to 14.2 per cent in the quarter, despite it increasing unit sales by 10 per cent. Apple moved 32 million units in the second quarter, significantly less than Samsung, but at least 3 million more that it had sold in the same period last year. Both Samsung and Apple sold more units in the second quarter this year compared to the same quarter last year. Apple's previous dominance is fading as rival handset makers release phones of a similar standard. Gartner's figures showed LG, Lenovo, and Chinese phone maker ZTE were the next most popular after the dominant two with 225 million smartphones sold overall. "Asia/Pacific, Latin America and Eastern Europe exhibited the highest smartphone growth rates of 74.1 per cent, 55.7 per cent and 31.6 per cent respectively, as smartphone sales grew in all regions," said Anshul Gupta, principal research analyst at Gartner. Nokia declines grow If the figures were cause for concern at Apple HQ, then Nokia look in much worse trouble. Its decline accelerated in the second quarter of 2013 losing 5.9 per cent of its already minimal market share over the previous year. It had only dropped 2.9 per cent in the same quarter of 2012 over that of 2011. But Gartner says Nokia could take heart from its wide portfolio of devices at multiple price points, which should boost sales of its Lumia range in the second half of 2013. "We see demand in the premium smartphone market come mainly from the lower end of this segment... it will be critical for Samsung to step up its game in the mid-tier and also be more aggressive in emerging markets," said Gupta. Apple has been rumoured to be working on a new range of lower cost iPhones, but Gupta said this strategy could have its own risks. "Although the possible new lower-priced device may be priced similarly to the iPhone 4 at $US300 to $US400 (locked telecommunications provider price), the potential for cannibalisation will be much greater than what is seen today with the iPhone 4," Gupta said. "Despite being seen as the less expensive sibling of the flagship product, it would represent a new device with the hype of the marketing associated with it." Table: Gartner Table: Gartner Operating system In smartphone operating systems, Microsoft took over BlackBerry for the first time, taking the No. 3 spot with 3.3 per cent market share in the second quarter. Android again increased its lead, garnering 79 per cent of the market in the second quarter. "While Microsoft has managed to increase share and volume in the quarter, Microsoft should continue to focus on growing interest from app developers to help grow its appeal among users," said Gupta. READ NEXT: The Australian Financial Review via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNG1KMoc39HlPTbKTw48waWsa44h-Q&url=http://www.afr.com/p/technology/samsung_rises_as_apple_loses_more_Z6ajdmTR0wb1365hlm0NRN

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