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"A big part of Samsung's (SSNLF.PK) problem, in one chart," tweets Benedict Evans about a...

"A big part of Samsung's (SSNLF.PK) problem, in one chart," tweets Benedict Evans about a graphic showing Baidu's Android page view share by OEM. While Samsung's share fell slightly from Dec. '11 to Sep. '12, and the share of other top-6 OEMs collectively declined steeply, the share of "Other" OEMs doubled to ~40%. This happened while Chinese Android sales skyrocketed. Smartphone sales have shifted heavily to cheap emerging markets hardware, with much of it coming from second-tier and white-label OEMs. Samsung isn't fully immune, not when rivals can offer the same OS and core services. Apple (AAPL) can offer a differentiated OS, but is that enough to maintain growth while protecting unmatched ASPs and margins? (Samsung Q2)
Comments (15)
  • Apple could do well with an inexpensive smartphone only if it has a truly distinctive design. It has to live up to the name Apple has built (or had) and be so fashionable it stands out. Something innovative, e.g. a good looking phone that doesn't need a case.


    That's a problem with smartphones. They look and feel good in the hand until you put a case on them, then they're bulky and don't have the same feel or look.
    5 Jul 2013, 08:08 PM Reply Like
  • In addition to the Smartphones Apple and Samsung need SmartEngineers.
    The biggest problem that Apple faces, and almost nobody is talking about, is the threat of Apple losing its really talented employees.
    The problem is that Apple is bleeding talent, and it would be devastating to the company.
    6 Jul 2013, 06:26 AM Reply Like
  • My previous iPhone 3G & 4S ran case-less, as does my current iPhone 5.


    Apple makes some great looking phones - why cover up all that beauty...
    5 Jul 2013, 08:32 PM Reply Like
  • right on! I have a clear case simply because my side pockets rub a shiny spot on the back of my iPhone 5, it's like a polishing leather.
    5 Jul 2013, 10:12 PM Reply Like
  • Protecting the look and value of an iPhone has now become an aapl topic on seekingalpha?
    6 Jul 2013, 03:04 AM Reply Like
  • @arkeh, Ha, slow current day!
    6 Jul 2013, 12:17 PM Reply Like
  • I have a case on my iPhone 5 because it gets too hot.
    Much better feeling with the case although it's heavier and fatter.
    6 Jul 2013, 07:37 PM Reply Like
  • You have to give credit to Google. This is exactly what Google's strategy was when they initially released android. And it worked pretty much exactly as they had planned.


    Now the android phone market is super competitive, which means cheap phones which means a lot of phones which means a lot of people all over the world using Google search on their phones. At the same time there is no dominant player which means nobody is likely to try to get clever and put in their own software or fork the android code in their own direction.
    5 Jul 2013, 08:37 PM Reply Like
  • > nobody is likely to try to get clever and put in their own software


    Actually this is currently one of the big challenges facing Android -- too many manufacturers doing too many different things. It may all be Android at the core, but a Samsung phone has a different user experience than an HTC phone, which is different from a Google Nexus phone.


    Most people currently don't care, because they are used to every phone working differently, but one day this could prove to be a nontrivial problem.
    5 Jul 2013, 09:55 PM Reply Like
  • I'm afraid you have an inaccurate reading of the state of Android. A HUGE chunk of Android users are using an version of the OS that is at least 2 to 3 years old. That mean a large percentage of users are unable or unwilling to access the latest apps on the market as well as the hardware upgrade path for many handset users have stagnated. For many Android users, good enough means software and hardware revenues fall.


    Not so with iOS and iPhone. Over 90% of iPhone have the latest version which means that app developers have an easier chance to monetize their products more quickly. It also shows that iPhone users are more willing to follow an upgrade cycle as well as have more discretionary income.


    Lastly, security, security, security. Android has over 100,000+ pieces of malware. iOS - zero.
    5 Jul 2013, 11:19 PM Reply Like
  • Great comment - shows that the OS is not a commodity, though reasons are too technical for most users to realize until they try it for themselves and are disappointed (compared to friends with Apple). I'm in a country/region with MANY Samsung users, certainly not loyal. Also touches on why Apple continues to be a good investment.


    I'd like to know more about how developers decide which OS to target - seems clear that the premium niche market (Apple) gives a better return than the commodity market (Droid). Premium users purchase apps and frequently upgrade to access the latest, as you point out. At what point does market share change the equation for developers? When users of the commodity begin using more paid apps?
    6 Jul 2013, 12:15 AM Reply Like
  • @dgy, wouldn't that just be the all mighty dollar? go where the profit potential and margin is the greatest?
    6 Jul 2013, 12:19 PM Reply Like
  • berylrb - yes, that's what I am asking. At what point does Droid market share translate into more money for developers? Right now, Apple's much smaller share still provides the better return. But that can change, especially if a higher % of Droid users start buying apps.


    There is also a pain for profit trade-off. some of the technical contributors have mentioned that it's easier to write programs for Apple.
    7 Jul 2013, 08:32 AM Reply Like
  • How many android users are more likely to buy the cheapest phone therefore not wanting to pay for apps, Samsung make dozens of models from budget ( galaxy y ) only capable of running an obsolete version of android up to something they hope can compete with iphones. Why don't Samsung skip the hype and report how many phones were sold, not shipped?
    7 Jul 2013, 07:04 PM Reply Like
  • The chart and 'news' item is little more than a rip-off of something that previously appeared in the press.
    6 Jul 2013, 01:22 PM Reply Like
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