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the Apple drops a branch

July 30, 2012

Last week, market research firm IDC released its quarterly update on the global smartphone market and the big winner is Samsung. The Korean electronics giant sold more than 50 million smartphone from April through June and cemented its position as the world largest smartphone maker. In fact, Samsung took market share from Nokia and HTC. Samsung reportedly sold 10 million units of its new flagship model Galaxy S3 in a matter of weeks and now holds a global market share of 32.6%. Meanwhile, Apple sold 26 million iPhones last quarter and saw its market share drop from 23% to 17%. The fact that the iPhone’s design hasn’t been changed since June 2010 is obviously starting to hurt Apple and Samsung looks very capable of seizing the moment and running away with the market.

The smart phone industry can be viewed through the lens of Sheth’s Rule of Three. Samsung and Apple now hold the dominant top 2 categories on the mass market side. Number 3, Nokia, risks slipping into the ditch and the rest of the manufacturers will be fighting it out on the niche side. For more on the Rule of Three (


From → business, Strategy

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