In terms of volume market share, Samsung always has the advantage over other OEMs but mainly because it ships plenty more mid-range and budget devices.
In order to sustain its advantage in this area, the company has severely cut the prices of its affordable products so much so that their margins have been affected considerably.
But for the first time in a good number of years Samsung has taken a greater slice of the volume market share using its flagship instead.
Because of the Samsung Galaxy S7, which is the best-selling flagship in the entire Galaxy S series, the company’s sales have risen by 7.9 percent in the first quarter of this year compared to the same period in 2015.
At the same time Apple’s volume market share has declined by 3.1 percent, thanks also to the Huawei and Oppo which have respectively gained 2.9 percent and 2.6 percent in the market. Xiaomi has dropped by 0.1 percent.
Winning In Apple’s Game
The reason Samsung has reached Apple’s standard is how it manages to sell more volumes of its pricier top-of-the-line phone while widening profit margins. Market analyst firm IHS revealed that while the Galaxy S6 costs Samsung $275 per unit to manufacture, the Galaxy S7 costs only $255 per unit.
This cost per unit reduction is remarkable because the Galaxy S7 packs newer technology and more features compared to its predecessor. At the same time Samsung has managed to reduce its marketing costs. To sell more units with less marketing is also a noteworthy achievement.
Of course it is still a long way to go before Samsung can catch up to Apple in the profit market share arena, given that the latter still owns 90 percent of shares in that area. But Samsung is gaining ground, while Apple is heading on a downward slope.