Samsung is being challenged by lower-cost competitors; the
company’s average price per phone fell by $30 last year, and its
share of >$400 phones slipped from 40 percent to 21 percent. This
kept up Samsung’s volume — they now account for one in three
smartphone sales — but the result was their first profit decline
in nine quarters.
Apple had the exact opposite problem: the iPhone’s average
selling price jumped from $577 to $636 quarter-over-quarter, and
was only down $6 year-over year. Apple also increased its share
of the >$400 market from 35 percent to 65 percent. Growth, though,
was meager: a mere 7%, despite the addition of NTT DoCoMo and a
much earlier China launch for the iPhones 5S and 5C as compared
to the iPhone 5.