Apple’s share price on the Nasdaq is expected to rise following the launch of the iPhone 15 Series. Despite challenges in the smartphone industry, Apple is expected to manufacture enough iPhones to surpass Samsung to become the largest smartphone maker in the world. On the other hand, Samsung is cutting down its phone production to sustain the balance between supply and demand for its devices.
Analyst Ming-Chi Kuo has shared a brief report based on the competition between Samsung and Apple in smartphone production. He says that Apple will surpass Samsung to become the world’s largest phone maker by the end of 2023. If this report turns out to be true, it will have a huge positive impact on Apple’s stock price.
Apple and Samsung Account For 40% of Global Smartphone Sales
Apple and Samsung are the two giants of the smartphone industry, that supply almost half of the world’s smartphone demands. While Apple dominates the premium segment through its iPhones, Samsung has a much wider portfolio ranging from flagship to even budget and midrange devices. As per Counterpoint Research, Samsung and Apple have enjoyed a combined 40% market share in global smartphone sales for the last 2 years.
However, Samsung has always been slightly ahead of Apple in terms of sales volume. Although the difference is not huge, but it is enough for Samsung to claim the #1 spot, pushing Apple to the second.
|
Global Smartphone Shipments (Millions) |
||||||||
| Brands | Q3
2021 |
Q4
2021 |
Q1
2022 |
Q2
2022 |
Q3
2022 |
Q4
2022 |
Q1
2023 |
Q2
2023 |
| Samsung | 69.3 | 69.0 | 74.5 | 62.5 | 64.3 | 58.3 | 60.6 | 53.5 |
| Apple | 48.0 | 81.5 | 59.0 | 46.5 | 49.2 | 70.0 | 58.0 | 45.3 |
| Xiaomi | 44.4 | 45.0 | 39.0 | 39.5 | 40.5 | 33.2 | 30.5 | 33.2 |
| OPPO* | 38.1 | 33.9 | 30.9 | 28.2 | 29.5 | 29.6 | 28.4 | 28.0 |
| vivo | 33.7 | 29.3 | 24.8 | 25.5 | 26.0 | 23.4 | 20.8 | 21.4 |
| Others | 108.5 | 112.7 | 98.1 | 92.3 | 92.4 | 89.4 | 81.9 | 86.6 |
| Total Market | 342.0 | 371.4 | 326.4 | 294.5 | 301.9 | 303.9 | 280.2 | 268.0 |
Data: Counterpoint Research
On having a closer look at the reports, it is clearly evident that Samsung sells more phones than Apple throughout the year, except in the last quarter. This is because Apple launches its new iPhones every year in September, resulting in a sudden surge in sales, which eventually steadies as the year ends.
Samsung Saw A Decline in Smartphone Sales
Despite being the world’s largest phone maker, Samsung saw a 10% YoY decline in smartphone sales in 2023. Not just phones, but Samsung also took a huge hit in its chip production business, where its profits shrunk by 96% because of lower demand. As per Analyst Ming-Chi Kuo, Samsung is expected to sell around 220 million phones in the upcoming year.
However, he also says that Apple is expecting a 10% YoY growth in smartphone sales, increasing iPhone annual sales to 250 million units. This increased demand is being speculated because of the new design of the upcoming iPhone 15 Series, which will supposedly have thinner bezels.
If both factors turn out to be true, then Apple will surpass Samsung to become the world’s largest smartphone maker in 2023, as it will sell around 250 million devices, as compared to 220 million shipments by Samsung.
Apple May Achieve New ATH on NASDAQ
Disclaimer: This is NOT an investment advice. This is just a report based on the data from NASDAQ.
If Apple ends up surpassing Samsung in overall smartphone sales, we can expect its share price to reach a new all-time high. As of now, Apple’s current ATH was $196.19 per share, achieved on 31st July 2023. Currently, Apple’s shares trade around the $180 mark. Ming-Chi Kuo reports that Apple may see a positive movement in the stock price, post the launch of the iPhone 15.
