Two Bears, Revisited

Great piece by Ben Thompson:

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.

★ Monday, 3 February 2014