(28-07-2013) Samsung overtakes Apple, becomes world's most profitable handset vendor - Financial Express - W4llppr

Samsung overtakes Apple, becomes world's most profitable handset vendor - Financial Express Jul 28th 2013, 10:10

South Korean handset maker Samsung has become the world's most profitable mobile handset vendor in the second quarter of current year overtaking its rival Apple, said a report by Strategy Analytics. "Samsung became the world's most profitable handset vendor in Q2, 2013. Apple slipped into second position, as margins have been hit by lacklustre iPhone 5 volumes and tougher competition in China," the report said. Apple was the world's most profitable handset vendor for almost four years, from third quarter of 2009 to first quarter of 2013, it added.

"We estimate Samsung's operating profit for its handset division stood at USD 5.2 billion in the second quarter of 2013. Samsung overtook Apple for the first time, which recorded an estimated iPhone operating profit of USD 4.6 billion," the report said. Market analyst and research firm Strategy Analytics attributed growth of Samsung to strong volumes, high wholesale prices and tight cost controls, "Apple's profit margin for its handset division has been fading recently due to lacklustre iPhone 5 volumes and tougher competition from rivals. Samsung is performing well in the US market, while Huawei, ZTE and other local brands are growing vigorously in China," the report said.

Apple is now under intense pressure to launch more iPhone models at cheaper price-points or with larger screens to fend off the surging competition and recapture lost profits in the second half of 2013, it said. According to Strategy Analytics, 386 million units of mobile phones were shipped globally in the

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