The continued success of Samsung’s smartphone range helped it overtake Nokia as the world’s largest handset vendor this week, with sales of its flagship Galaxy S II and Galaxy Note devices playing a significant part in its rise to the summit.
And with the launch of the Galaxy S Advance and the successor to the S II, it will be interesting to see if these devices have a bearing on the manufacturer’s next set of results. The Korean company reported a 98% surge in profit, firing an ominous warning to its market rivals as it now moves to attack emerging markets.
There has been much discussion about why Samsung has enjoyed so much success in the past year or so, but the answer may be staring us in the face. The Samsung brand is everywhere and is trusted by consumers. Just look around your home.
In addition, Samsung’s marketing has been extremely effective. Whether it’s sponsorship of major football events or carving out a niche in the Olympics branding stakes, the Samsung brand is now synonymous with success.
This is the challenge facing many of the new and existing players in the mobile space – building up a brand that will truly engage with consumers.
However, with some of the exciting launches at Mobile World Congress in Barcelona set to hit the market in the coming months, it will be interesting to see if Samsung can maintain its market-leading position. There are strong indications that other manufacturers have upped their game and will be more aggressive in trying to capture market share. For the time being, however, Samsung remains king and a report by leading mobile analyst firm Juniper Research underlined Samsung and Apple’s dominance of the global smartphone market in what is increasingly becoming a two-horse race.
In the first quarter of 2012, Juniper estimated that nearly 60% of the 139 million smartphones shipped worldwide carried either the Apple (35.1 million) or Samsung (46.9 million) brand – up from 46% in the last three months of 2011.
The report certainly provides food for thought for their rivals.