Samsung Electronics and Apple recorded business profit rates of approximately 7 percent and 27 percent in the third quarter of this year, respectively.
Samsung Electronics’ profit rate increased from 11 percent to 20 percent between 2011 and the first quarter of 2014. However, it had to spend a lot on marketing for the next six months to tackle Chinese smartphone suppliers such as Xiaomi. A decline in the average selling price (ASP) added to the blow, too.
Apple, in the meantime, reached a new high at 39 percent in the fourth quarter of 2011 and has remained around 30 percent all the way since then. Samsung Electronics has never surpassed Apple in the quarterly business profit rate since 2011.
“The increase in high-end smartphone shipments in major markets like China expected for the last quarter of this year will revolve around the iPhone,” said KB Investment & Securities, adding, “Apple’s shipment and ASP will go up at a rapid pace thanks to the popularity of the iPhone 6 and iPhone 6+.”
Korea Investment & Securities predicted that Samsung Electronics’ hard time is likely to continue for a while in spite of the upcoming debut of the Galaxy A series phones and the flagship Galaxy Note 4.