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Monday, August 05, 2013
Samsung and Apple's Channel Dominance Leaves Little Room for the Others in the Mobile Device Market

Analysts predict tough times are ahead for smartphone vendors, as the balance of power remains with Samsung/Android and Apple.

The smartphone market is entering a new, more mature stage in its growth, where execution rules over innovation and Samsung is dominating the sales channel with more than double the number devices on offer than any other vendor across the 13 markets and multiple online retailers studied by ABI Research.

Nick Spencer, senior practice director, ABI Research said: "Samsung is dominating the sales channel at nearly every price point, with only Apple challenging Samsung at the high end of the market. This leaves little room for the other vendors to compete, especially the other Android vendors and those using uncompetitive operating system ecosystems. Despite some carrier's efforts to create a more balanced smartphone device vendor industry with their use of subsidy, ultimately they are obliged to fulfill consumer demand and at the moment that means Samsung/Android and Apple."

Spencer went on to add, "The balance of power looks set to remain with Apple and Samsung for the foreseeable future. The course of the smartphone market is looking increasingly set as it enters a more mature stage on the current innovation curve. This is bad news for the players vying for the third ecosystem position."

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