Sun, Jul 29, 2012 - Page 13 News List

Samsung extends healthy lead over key rival iPhone

AP, NEW YORK

A man uses his mobile phone near Samsung’s main office in Seoul on Friday.

Photo: Reuters

Samsung has extended its lead over Apple in smartphones, in part because its new Galaxy phones came out before Apple updated its iPhone, research group IDC said on Friday.

Samsung’s Galaxy S3 phone got good reviews when it was released late in the second quarter. In the US, the smartphone works with the faster fourth-generation, or 4G, cellular networks that major wireless companies have been building. The Galaxy’s screen is larger than the iPhone’s, while the Samsung phone is lighter and thinner.

An iPhone with 4G capabilities is not expected until this fall. The current model, the iPhone 4S, came out in October and sales typically drop several months after each release.

According to IDC, Samsung Electronics Co shipped 50.2 million smartphones worldwide in the second quarter and commanded a market share of 33 percent, up from 17 percent a year ago. Apple Inc’s fell slightly to 17 percent, from 19 percent a year ago. It sold 26 million iPhones in the April-June quarter.

Besides having the Galaxy S3 out months before a new iPhone, Samsung also benefited from its strategy of developing several devices for a range of consumers. By contrast, Apple targets only the high-end market with its iPhone.

IDC said the big question is how well Samsung’s phones will sell once the new iPhone hits the market.

Overall, phone manufacturers shipped 154 million smartphones in the second quarter, a 42 percent increase from 108 million a year earlier. That was slightly below IDC’s forecast of 43 percent and was the slowest growth since the fourth quarter of 2009. At that rate, IDC said it would be tougher for Samsung and Apple to expand their market shares further. IDC said economic turmoil in Europe could put growth prospects at risk.

Including basic cellphones, vendors shipped 406 million units, up from 402 million a year earlier.

Samsung and Apple combined claimed nearly half of the smartphone market.

Nokia Corp was No. 3 with a 6.6 percent market share, down from more than 15 percent a year ago. Nokia has had some success with its Lumia line, based on Microsoft’s Windows system. The company is hoping for a boost once Microsoft releases a major upgrade to Windows in October, one designed with touch screens in mind.

Taiwanese manufacturer HTC Corp (宏達電) was fourth with 5.7 percent of the market, down from nearly 11 percent.

Chinese phone maker ZTE Corp (中興) claimed the No. 5 spot for the first time, with a 5.2 percent market share, up from 1.8 percent a year earlier. Its lower-cost, entry-level smartphones have been popular in China and Latin America.

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