Samsung is facing fierce competition from Apple and other Chinese brands. However, the South Korean firm is still the most profitable brand in the Android smartphone segment. It is still nowhere close to Apple when it comes to profitability, but it is in a much better position than any other Android smartphone maker.
According to a new report from Counterpoint Research, the launch of the Galaxy S23 series helped Samsung in improving its ASP (Average Selling Price) to $340 in Q1 2023. This is a 17% improvement compared to last year and a 35% improvement compared to Q4 2022. The company had a 22% market share in terms of shipments, 1% point lower than Apple during the same quarter. Xiaomi had an 11% market share globally in terms of smartphone shipments, standing at the third position. OPPO stood fourth with a 10% share of the shipments and Vivo with a 7% market share.
It's tough to be in the cutthroat smartphone market where Apple and Samsung gobble up 96% of all profits
When it comes to profits, though, Apple and Samsung gobble up almost 96% of all profits in the global smartphone industry. Of that, Apple has control over 72% of profits, while Samsung has a 24% share of the profits. This leaves all other Android smartphone brands with just a 4% share of the profits collectively.
Apple generates half of the revenue in the smartphone market due to a much higher ASP compared to any other smartphone brand. Even though OPPO (OnePlus and Realme included), Vivo, and Xiaomi have lately increased the prices of their phones, they are nowhere to be seen in terms of revenue or profits compared to Apple and Samsung. It means that none of the Chinese brands are selling high-end devices in enough volume.