Market News & Analysis

Apple vs Samsung | The Battle for China

Apple announced its fourth-quarter earnings results on Monday, October 28. The technology bellwether, which saw shares slump by 45% in the past six months, posted revenues of $37.5 bn and a net quarterly profit of $7.5bn, as compared to revenues of $36bn and a net quarterly profit of $8.2bn for the same quarter a year ago.

Apple’s results initially disappointed investors, in spite of the technology giant selling 33.8bn iPhones in the last quarter alone. Shares fell over 2% following the earnings release but soon rebounded to trade close to similar levels last week.

Apple is hoping to announce a potential deal with China Mobile – the world’s largest mobile phone company.

Apple’s foray into the Chinese mobile market is likely to lead the firm into a headlong battle with Samsung – current leaders with an 18.3% share – compared with Apple’s 5%.

But how does Apple measure up to Samsung from an investor’s standpoint? Will the company succeed in making significant inroads into the Chinese market or will it fall short?

Here are some statistics to help you along the way. Alternatively, visit our trading and spread betting pages to learn more.

Updated on October 28, 2013

Apple vs Samsung

 

 

Here’s a summary of the statistics included in the infographic above.

 

City Index trader statistics

  • Ratio of Apple trades over Samsung trades at City Index: 73:1
  • 80% of City Index clients who have traded Samsung have also traded Apple
  • 82.8% of City Index clients who have traded Google have also traded Apple
  • 3.2 days is the average duration of an Apple trade at City Index
  • 12.3 days is the average duration of a Samsung trade at City Index

 

Apple Q4 earnings results (28th October 2013)

  • Q4: Earnings per Share (EPS): $8.26
  • Net profit: $7.5bn
  • 33.8mn iPhones sold vs 26.9mn iPhones a year ago (September record)
  • 14.1mn iPads sold vs 14mn iPads a year ago
  • 4.6mn Macs sold vs 4.9mn Macs a year ago
  • Gross profit margin: 37% vs 40% in Q3

 

Q1 2014 guidance

  • Revenues between $55bn and $58nm
  • Gross margin between 36.5% and 37.5%

 

Apple vs Samsung

  • IDC predicts that China’s smartphone unit shipment will increase by 25% in 2014 to 450m
  • Apple’s market share is set to double to 10% by 2014. Samsung’s market share is currently 18.3%
  • In 2013, China’s smartphone unit shipments were expected to reach 360m
  • According to CIRP, Samsung overtook Apple for share of the US mobile phone market in the last quarter
  • 11% of Apple customers have switched to Samsung in the last year
  • Samsung has 3 times more flagship stores in China than Apple
  • First time smartphone buyers prefer Samsung by a ratio of 3:1
  • China mobile has 700mn mobile subscribers, who Apple could then sell to, as part of a deal with China Mobile
  • Apple is expected to reach a deal to sell iPhones early next year

 

US phone brand share:

  • Apple: 34%
  • Samsung: 38%
  • LG: 8%
  • HTC: 8%
  • Motorola: 4%
  • Nokia: 3%
  • Other: 3%
  • BlackBerry: 2%
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