Apple’s and Samsung’s Channel Dominance Leaves Little Room for the Others – Analysts

Tough Times Ahead for Smartphone Vendors as Apple and Samsung Set to Continue Dominating

by Anton Shilov
08/08/2013 | 11:55 PM

Just six or five years ago Apple was nobody on the market of smartphones, whereas Samsung only started to make steps into this space. However, nowadays these two companies dominate sales and profits of the whole smartphone industry. Moreover, as Apple and Samsung are kee on offering unique capabilities with their products, the situation will likely continue as others will essentially be following the two.

 

ABI Research’s channel sales analysis reveals tough times are ahead for smartphone vendors, as the balance of power remains with Samsung/Android and Apple. The smartphone market is entering a new, more mature stage in its growth, where execution rules over innovation and Samsung is dominating the sales channel with more than double the number devices on offer than any other vendor across the 13 markets and multiple online retailers studied.

“ABI Research’s Device Portal analysis showed that Samsung is dominating the sales channel at nearly every price point, with only Apple challenging Samsung at the high end of the market. This leaves little room for the other vendors to compete, especially the other Google Android vendors and those using uncompetitive operating system ecosystems. Despite some carrier’s efforts to create a more balanced smartphone device vendor industry with their use of subsidy, ultimately they are obliged to fulfill consumer demand and at the moment that means Samsung/Android and Apple,” said Nick Spencer, senior practice director at ABI Research.

The analyst believes that the balance of power is set to remain with Apple and Samsung for the foreseeable future. The course of the smartphone market is looking increasingly set as it enters a more mature stage on the current innovation curve.

“This is bad news for the players vying for the third ecosystem position,” added Mr. Spencer.