Skip to main content

Samsung’s smartphone sales surge… at Apple’s expense?

The never-ending struggle between Apple and Samsung has taken a new turn, with the latter reporting a far more successful than expected fourth quarter in 2012. Sales and profits both surged, and analysts believe that to be a direct result of the underwhelming launch and initial sales velocity for Apple’s iPhone 5. Did the newest smartphone from 1 Infinite Loop drive prospective customers straight into the arms of its competitors?

In the Q3 2012 earnings announced today by Samsung, estimated operating profits surged by an amazing 89-percent, to reach a new quarterly high of 8.8 trillion Korean won (Roughly $8.3 billion U.S.). Sales also rose 18-percent to 56 trillion won, mostly driven by the demand for the company’s Galaxy Note II and Galaxy S III phones. The results are all preliminary, however, and the Korean manufacturer has not released net income or divisional figures.  

Recommended Videos

Bloomberg Businessweek surveyed analysts to discuss this surge, and the consensus was that the earnings at the company’s cellphone division most likely doubled when compared with the same period in 2011. One of the analysts, James Song of Seoul’s Daewoo Securities Co., claimed that Samsung’s success was due to more than just good hardware though.

“Samsung was the major beneficiary of slower-than-expected sales of Apple’s iPhone 5,” Song said, adding that the company’s “biggest challenge ahead [would be] whether it can maintain its competitiveness in the smartphone market as [more] high-end products are expected to be released by big players like Apple and Google.”

Samsung’s bump at Apple’s expense is likely to feel particularly sweet at the former company, as well as sting particularly harshly for the latter. After all, relationships between the two companies have hardly been cordial of late, despite Apple remaining Samsung’s biggest customer. Both companies have been locked in litigation in multiple countries since April 2011, concerning alleged patent infringement on both sides (Apple issued the first lawsuit, with Samsung counter-suing a week later; at this point, the running total for lawsuits between the two over the topic now numbers somewhere in the region of 50, across more than ten different countries). Currently, neither side has a particular advantage; Apple has won legal victories in the U.S., Samsung has managed to do the same in the U.K., Japan, and South Korea.

In a side-by-side sales comparison, Samsung is believed to win the battle of the smartphones worldwide with 62 million smartphones sold internationally in the final three months of 2012, compared with 45 million for Apple. Some point to the upset surrounding Apple’s faulty Maps app – and subsequent public apology – as one significant reason why sales on the latter failed to meet expectations.

Whether or not Apple can make up lost sales ground with the iPhone 5 remains to be seen, as does Samsung’s ability to continue to push its Galaxy smartphones even harder in the U.S. to give them a significant presence in this market. One thing is for certain, however: this news isn’t likely to improve relations between the two companies.

Graeme McMillan
Former Digital Trends Contributor
A transplant from the west coast of Scotland to the west coast of America, Graeme is a freelance writer with a taste for pop…
The Samsung Galaxy S26 might miss out on this camera feature
The Samsung Galaxy S25 Ultra.

Although the Samsung Galaxy S25 has only been on the market for a short time, rumors have already begun to swirl about the Galaxy S26. Contradicting rumors, at that. Early leaks suggested the flagship might opt for an under-display camera, but a tipster has shared that it isn't likely — and that Samsung might not implement that style of camera anytime soon.

The under-display cameras have had "poor results," according to tipster Panda Flash on X. They claim that under-display cameras don't perform as well as a standard camera, and that Samsung's focus on high-end cameras for its flagships means you shouldn't look for one to come anytime soon.

Read more
I tested the Galaxy S25 Plus and iPhone 16 Pro cameras, this one wins
Samsung Galaxy S25 and iPhone 16 Pro

Smartphones have been getting bigger for years, but as they’ve done so, a new realm of smaller phones has launched to cater to those who want something more pocket-friendly. By small, I don’t mean Mini — although I’d love Mini phones to make a comeback — but rather, more friendly when using them with one hand.

Both Samsung and Apple have helped pioneer this trend, by ensuring there’s a smartphone that’s the perfect size for any needs. Yet, they’ve taken different approaches to doing so, as part of differing strategies on what the ideal smartphone lineup should look like.

Read more
Samsung Galaxy S25 vs. iPhone 16
Samsung Galaxy S25 vs Apple iPhone 16.

There’s little doubt that Apple and Samsung are two of the biggest rivals in the world of flagship smartphones. Every February and September brings a new smartphone that tries to leapfrog ahead of its main competitor. This year, that’s Samsung’s Galaxy S25 coming on the heels of September’s iPhone 16.

With few design changes, the Galaxy S25 doesn’t look much different from last year’s Galaxy S24, but Samsung has packed a lot of new technology and software improvements under the hood to produce an AI-forward smartphone that’s ready for prime time. With Galaxy AI in its second generation and the Gemini now front and center, the Galaxy S25 promises to usher the company’s flagships into a new era of AI smartphones.

Read more