3 days Ago
Apple has increased its revenue advantage in mobile phones over global rival Samsung in India, despite the US giant shipping less than half the devices that the South Korean company has moved, on the back of record-high average selling prices (ASPs) and aggressive market expansion, according to a research firm. In the first half of 2024, the iPhone maker shipped 4.8 million units for a revenue of $4.
56 billion, according to data from market tracker IDC , made available exclusively to ET. Samsung's volumes in the same period were almost double, at 9.8 million, despite a 15.
4% year-on-year decline in April-June shipments. However, its revenue stood at $3.43 billion, a gap of $1.
13 billion. This is compared with a revenue gap of over $362 million for the whole of 2023, when Samsung lost its mobile phone value share leadership to the iPhone maker for the first time. That year, the Cupertino-based company's revenue, from selling 9.
2 million units, crossed $8.69 billion. ‘Significant decline in ASP’ Apple overtook Samsung, which clocked $8.
33 billion revenue. Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Basics of Generative AI : Unveiling Tomorrow's Innovations By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Generative AI for Dynamic Java Web Applications with ChatGPT By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Mastering C++ Fundamentals with Generative AI: A Hands-On By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Office Productivity Zero to Hero in Microsoft Excel: Complete Excel guide 2024 By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Astrology Vastu Shastra Course By - Sachenkumar Rai, Vastu Shashtri View Program Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Web Development A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024 By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Office Productivity Mastering Microsoft Office: Word, Excel, PowerPoint, and 365 By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Marketing Digital marketing - Wordpress Website Development By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert View Program Web Development Mastering Full Stack Development: From Frontend to Backend Excellence By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Finance Financial Literacy - TDS, Budget, Income Tax Act, GST, Indirect tax By - CA Rahul Gupta, CA with 10+ years of domain experience, trainer View Program Leadership Business Storytelling Masterclass By - Ameen Haque, Founder of Storywallahs View Program Future of Marketing & Branding Masterclass By - Dr.
David Aaker, Professor at Haas School of Business View Program HR & People Management Human Potential and the Future of Employment By - Lynda Gratton, Co-chair of the World Economic Forum Council on Work, Wages and Job Creation, Professor of Management Practice View Program Strategy ESG and Business Sustainability Strategy By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader View Program Finance Financial Reporting and Analytics By - Dr. C.P.
Gupta, Professor: Department of Finance and Business Economics, University of Delhi View Program Marketing Performance Marketing for eCommerce Brands By - Zafer Mukeri, Founder- Inara Marketers View Program “Samsung’s drop can be attributed to a 15% on-year fall in shipments (in April-June), clubbed with a significant decline in ASP — from $380 last quarter, to $313 in Q2 (of 2024),” said Navkender Singh, associate vice-president at IDC. “It underperformed in the super-premium $700+ segment, where the newly launched Galaxy S24 shipments struggled compared to the previous quarter (January-March).” Samsung didn’t respond to ET’s queries.
But company officials said other researchers showed that the South Korean major was continuing to hold on to, or expand, its value share in the India market. IDC pegged Apple’s value share in January-June at 25.9% (23% in all of 2023) compared with 19.
4% for Samsung (22% in 2023). On the other hand, Counterpoint Research pegged Samsung’s value share in April-June at 24.5% (23% in 2023) compared with Apple’s 18% (19% in 2023).
Market trackers expect Apple to close the calendar year with around 12.5 million in shipments, up from 9.2 million in 2023, while Samsung's shipments are expected to decline to around 20 million units, from 24.
7 million in 2023. As a result, analysts expect Apple's revenue to keep growing, with ASPs likely to be over three times more than that of Samsung, whose performance will be heavily dependent on festive demand. Showing so far For fiscal year 2023, Samsung India posted revenue of ?98,924 crore, of which mobile phones accounted for ?70,292 crore, according to Registrar of Companies data.
In comparison, Apple India’s revenue for the fiscal year was Rs 49,321 crore, 94.6% of which was accounted for by product sales, dominated by iPhones. Samsung, which was the top-selling smartphone brand in 2023 by volume, has seen that erode in recent quarters, being pressured in the lower-price, high-volume segments by Chinese brands such as Xiaomi and Vivo that are strengthening their budget portfolios with 5G support, according to market trackers.
The South Korean company is also being challenged in the high-end segments amid Apple’s aggressive marketing push, driven by expanding local manufacturing and a growing premiumisation trend in India, experts said. In the June quarter, both the $600-800 premium segment and the $800-plus super-premium segment were dominated by Apple, said market trackers. iPhone models commanded 61% and 83% share of shipments in the two price segments, respectively, while Samsung had a share of 21% and 16%, in that order, said IDC.
Samsung’s revenue has jumped 53.6% in the last five years, with increasing ASPs, which went from $176 in 2019 to $338 in 2023. Volumes have fallen 20% in the period.
(You can now subscribe to our Economic Times WhatsApp channel ).
