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Samsung Becomes Worldwide Cell Phone Market Leader

By - Source: IHS | B 12 comments

Ends 14-year reign for Nokia.

Samsung has outperformed Nokia in the global cell phone market to become the market leader based on its 2012 commercial performance.

Analytics company IHS has said Samsung will finish 2012 with a 29 percent market share of the cell phone market, while Nokia settles for second for the first time in 14 years with a 24 percent hold.

Last year, it was nearly exactly the opposite. Nokia led the worldwide cell phone market with a 30 percent share compared to Samsung's 24 percent.

The latter, however, has changed its fortunes around ten-fold with its handsets. Its Galaxy S3, in particular, has sold over 30 million units to become one of the best selling Android smartphones of all time, with the device also overthrowing the iPhone 4S' coveted moniker of the top selling smartphone in the world.

The S3's commercial performance saw Samsung post record profits of $7.4 billion during 2012's Q3, which is an increase of 91 percent when compared to the third quarter in 2011.

"The competitive reality of the cellphone market in 2012 was 'live by the smartphone; die by the smartphone,'" said Wayne Lam, senior analyst for wireless communications at IHS.

During the third quarter of 2012, Samsung sold 98 million phones, 55 million of which were smartphones, which led to a 22.9 percent share of the market. Nokia, meanwhile, sold 82 million phones, but only 7.2 million of those were smartphones. With the emergence of Samsung and other vendors due to Google's Android platform, the once-dominant Apple held on to third place with 10 percent of sales.

IHS said Nokia's declining performance was due to its change in direction, with the firm now focusing on Windows Phone 8. Comparatively, the analytics firm pointed towards Samsung's ability to appeal to both the high-and low-end of the smartphone market as a major factor towards its success this year.

Samsung's smartphone shipments increased by 8 percent from 2011, which is the greatest growth experienced by any vendor this year in the market. Overall, it boasted a 28 percent share of the market.

Nokia, however, experienced the biggest decrease in smartphones shipped by falling to 5 percent, representing an 11 percent decrease when compared to 2011. In the smartphone market, Apple settled for 20 percent. Both HTC and RIM followed behind with a 5 percent share of the smartphone market.

During the third quarter of this year, smart-connected devices (PCs, tablets and smartphones) shipped an accumulative of 303.6 million units. Canaccord Genuity analyst Michael Walkley believes Samsung will ship that exact same figure of handsets by itself in 2013.

 

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  • 20 Hide
    hardcore_gamer , December 20, 2012 7:53 AM
    mayankleoboy1But Apple makes the most profit.


    Thanks to slave labor
Other Comments
  • 20 Hide
    hardcore_gamer , December 20, 2012 7:53 AM
    mayankleoboy1But Apple makes the most profit.


    Thanks to slave labor
  • 1 Hide
    becherovka , December 20, 2012 8:33 AM
    Why do I get the feeling I have read this before? DejaVu? or blatant copy?
  • 6 Hide
    halcyon , December 20, 2012 9:33 AM
    Surprise, surprise, surprise. Good job Samsung, you deserve to be on top...you've earned it. Now...Note 3 please.
  • 1 Hide
    CaedenV , December 20, 2012 11:11 AM
    lol! of course this would come out the day I am planning on picking up my lumia 920.

    Anywho, good on Sammy! I was very much considering getting an S3 as it is a nearly perfect device for me on the hardware side. The only things that won me over to Nokia this go around was the camera, and WP8. I love the idea of Android, but in actual use I find WP8 to be much simpler to setup and use, and while I love to tinker on my desktop setup I simply want my phone to do x, y, and z with as little work as possible. If sammy got their WP8 device out then I would probably be buying a Sammy phone instead of a Nokia.
  • -5 Hide
    wemakeourfuture , December 20, 2012 11:51 AM
    hardcore_gamerThanks to slave labor


    Samsung uses the same labor, but Apple has forced FOXCONN to actually raises wages, what has Samsung pushed FOXCONN to do?
  • -8 Hide
    Anonymous , December 20, 2012 11:53 AM
    Congratulations! All they had to do was steal their designs from Apple and then give their phones away for free.

    What an accomplishment!
  • 5 Hide
    dthx , December 20, 2012 12:52 PM
    wepo2211Congratulations! All they had to do was steal their designs from Apple and then give their phones away for free. What an accomplishment!

    Despite their claims of being an innovator, Apple did steal quite a few things from the competition as well... For the "give their phones away for free"... pardon ? Samsung is as expensive as Apple for the high-end. Of course they have loads of cheap (and crappy) Android phones and feature phones which make the most of their volume in units (but with a minimal revenue !!!). But samsung is not cheap.
  • 0 Hide
    house70 , December 20, 2012 12:56 PM
    wepo2211Congratulations! All they had to do was steal their designs from Apple and then give their phones away for free. What an accomplishment!

    Yeah, because everyone can see that their best sellers (SGS3 and Note2) are identical to whatever Apple puts out....
    /sarcasm
  • 1 Hide
    Anonymous , December 20, 2012 1:37 PM
    Still using my 5 year old Nokia 5310... maybe my next one will be a samsung!

    but I need the unbreakable display, I have a cat that loves to throw phones to the floor :) 
  • 0 Hide
    jay_nar2012 , December 20, 2012 2:02 PM
    wemakeourfutureSamsung uses the same labor, but Apple has forced FOXCONN to actually raises wages, what has Samsung pushed FOXCONN to do?


    That was Apple's fault, not Samsung's, Apple decided to switch to Foxconn.
  • -1 Hide
    wemakeourfuture , December 21, 2012 11:27 AM
    mayankleoboy1But Apple makes the most profit.


    hardcore_gamerThanks to slave labor


    wemakeourfutureSamsung uses the same labor, but Apple has forced FOXCONN to actually raises wages, what has Samsung pushed FOXCONN to do?


    jay_nar2012That was Apple's fault, not Samsung's, Apple decided to switch to Foxconn.


    What are you talking about? They BOTH use FOXCONN, so if someone is criticizing Apple for using FOXCONN and not Samsung then they're full of B.S. because almost every large computer and electronic company in the world uses FOXCONN.

    All I pointed out was at least Apple pushed for higher wages, what has Samsung done? I never said it was Samsung's fault, all I am saying is at least 1 company (Apple) is trying to push for better standards for FOXCONN workers.