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May 15, 2013

Apple, Samsung Smartphone Duopoly to Continue Growth

Recent data from Gartner found Samsung to be the number one manufacturer of smartphones based on sales during the first quarter of this year, while Apple came in second. The former accounting for 31 percent of 210 million smartphones sold during the period, and the latter made up 18 percent. With nearly half the smartphone market between the two companies, Market Strategies International seems confident in calling this situation a duopoly.

In fact, a new survey by the research firm found that 80 percent of Apple customers and 60 percent of Samsung customers say they will stay with that brand. On the flipside, less than half of all users of all other smartphone manufacturers say they intend to retain their current brand when it comes time to buying a new device — and that they will opt instead for an Apple or Samsung-made phone.

This likely explains Samsung's confidence in its new flagship, the Galaxy S4, which was launched at the end of April.

“Manufacturers in the middle, like HTC, LG, Motorola and Nokia, are really being stretched by the competition. Our research shows smartphone consumers want a brand they can trust, an operating system with all the features and a high-quality product they can rely on for business and pleasure. Apple and Samsung score highly in all those areas. The other brands have their work cut out for them,” said Paul Donagher, senior vice president of the Communications Division for Market Strategies International.

Surprisingly, the only brand outside the Apple-Samsung duopoly capable of retaining consumers, according to Market Strategies, is BlackBerry, which boasts a group of dedicated long-time users who prefer BlackBerry devices for their business functionality. Donagher believes that the company's only hope for survival is to hold onto these core customers while attracting new customers with the type of non-business functionality that Apple and Samsung offer.

As for manufacturers such as HTC and LG, it seems that even a breakout hit may not be enough to drastically change the face of the current smartphone landscape.




Edited by Alisen Downey


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