Samsung vs Apple vs Huawei: The Best Smartphone Hotspot? [AK Radio]

Samsung Electronics and Apple, Who's Number One?
Rankings Change Based on Shipment Volume and Sales
Huawei Leads in the Foldable Market

With the release of Apple's latest smartphone, the iPhone 16 series, on the 20th, the smartphone market is hotter than ever. Globally, it is no exaggeration to say that the smartphone market is dominated by the American company Apple and South Korea's Samsung Electronics. Let's take a look at how much of the global market these two companies actually occupy and what strategies they are using to achieve their results.

According to market research firm Counterpoint Research, global smartphone shipments reached approximately 290 million units in the second quarter of this year. Among them, Samsung Electronics took first place with a 19% market share, while Apple ranked second with 16%. This shows that Samsung sells more devices than Apple. However, the situation changes when looking at revenue. Based on revenue, Apple's share of the global smartphone market is 42%, ranking first, while Samsung Electronics is second with 16%.

Why does this difference occur? It can be explained by the difference in the premium market. Apple mainly sells high-priced premium products, whereas Samsung Electronics sells a large number of mid- to low-priced smartphones such as the Galaxy A series. Samsung competes in the premium market with products like the Galaxy S series, but due to the weight of the mid- to low-priced market, it lags behind Apple in terms of revenue-based market share.

Apple's strength is also evident in smartphone model sales. The best-selling smartphone in the second quarter of this year was the iPhone 15 series, with four Apple products and five Samsung Electronics products making it into the top 10. However, the top three spots were all occupied by various models of the iPhone 15 series, and Samsung's Galaxy A15 model took fourth place. Notably, all Samsung models ranked in the upper tier belong to the mid- to low-priced Galaxy A series.

A similar situation unfolded last year. The best-selling smartphone was the iPhone 14 Pro Max, and Samsung Electronics showed signs of being outpaced by Apple in the premium market. Apple enjoys great popularity in the global premium smartphone market, especially receiving absolute support from the MZ generation.

Customers visiting the Apple Store in Myeongdong, Jung-gu, Seoul, are viewing Apple's first AI smartphone, the 'iPhone 16,' which was released domestically on the 20th. Photo by Jinhyung Kang aymsdream@

Samsung Electronics: The Absolute Leader in the Korean Market

So, what about the Korean market?

In Korea, Samsung Electronics boasts an overwhelming market share. As of the second quarter of this year, Samsung's domestic smartphone market share reached a whopping 76%. In contrast, Apple holds 22%, showing a different pattern from the global market. Samsung maintains its share steadily by releasing two major flagship models annually, while Apple announces new products only in the third quarter, resulting in relatively lower shares in the first and second quarters.

Another noteworthy aspect of the smartphone market is foldable phones. Samsung Electronics established itself as a market pioneer by commercializing the world's first foldable phone. Products like the Galaxy Flip and Fold received positive responses in the early market and were called representatives of foldable phones. However, the market is changing as China's Huawei recently launched the Mate XT, the world's first smartphone that folds twice.

Huawei smartphone

According to market research firm IDC, as of the second quarter of this year, Huawei took first place in the foldable phone market with a 27.5% share, while Samsung Electronics ranked second with 16.4%. Although the foldable phone market accounts for less than 1% of the total smartphone market, it is clearly a growing market. Especially with Huawei's growing influence in the Chinese domestic market, Samsung faces new challenges.

Chinese brands are also making remarkable advances in the mid- to low-priced smartphone market. Xiaomi's Redmi series has a strong presence in the mid- to low-priced market by emphasizing price-to-performance ratio. Xiaomi is particularly popular in India, Southeast Asia, and China, with Samsung trailing behind. Samsung is also struggling in the Chinese market. Domestic brands like Huawei and Xiaomi dominate the Chinese domestic market, while Apple and Samsung record minimal shares.

Changes in the iPhone Index and Global Inflation Index

As Apple's iPhone gains great popularity in the global market, the 'iPhone Index,' which is based on the price of the iPhone, is also attracting attention. The iPhone Index calculates how many days' worth of average monthly salary in each country is needed to buy an iPhone. In Korea, it takes about ten days' worth of salary to purchase an iPhone. In contrast, it takes four days in Switzerland and five days in the United States. The country requiring the longest time is Turkey, taking about 72.9 days.

The iPhone Index can change depending on exchange rate fluctuations. Last year, Turkey's iPhone Index was 123 days, but this year it decreased to 72.9 days. This reflects the impact of exchange rate changes, showing that the time and cost required to purchase the same product can vary significantly by country.

Besides the iPhone Index, the globally well-known inflation index is the 'Big Mac Index.' The Big Mac Index compares purchasing power based on the price of McDonald's signature menu item, the Big Mac. As of July this year, Switzerland had the highest Big Mac Index, with a Big Mac costing $8. In contrast, Taiwan recorded the lowest price at $2.46. Korea was at a mid-level with $3.99.

Similarly, there is the 'Starbucks Index,' which compares purchasing power based on the price of a Starbucks Caff? Latte. It compares the prices of Starbucks Caff? Lattes sold worldwide. Switzerland had the most expensive latte at $7, while Korea was at a mid-level with $4.11. In Turkey and Brazil, it could be purchased for between $1 and $2.

In Japan, the 'Curry Rice Index' has recently gained attention due to rising rice prices. This index is based on the price of curry rice, a representative home-cooked meal in Japan, and is calculated by considering the costs of ingredients such as rice, vegetables, meat, and electricity for cooking. As of July, Japan's Curry Rice Index reached 342 yen, marking the highest level since 2015.

Various surveys using price indices have also been conducted in Korea. For example, the Shin Ramyun Index compares purchasing power by country based on the price of Shin Ramyun sold worldwide. These indices are useful data for comparing the economic situations of countries through the prices of specific products.

Editor's Note This content is also available on Asia Economy's economic podcast 'AK Radio.' AK Radio is a platform that provides essential information for investors, covering politics, economy, international affairs, tech, bio, and digital trends. Clicking the video play button within the article allows you to hear the reporter's actual voice. This article is a reorganization of the content broadcast on AK Radio through ChatGPT.