Samsung dominates European smartphone sales

Samsung Electronics Co. lost $25.3 billion of market capitalization last month, as sales of its Galaxy S4 smartphone missed investor expectations. After the official release of the flagship model the company that sells nearly one of every three mobile phones declined 9.7%. JP Morgan Chase & Co. and Morgan Stanley both lowered sales forecasts which led to reduce of profit forecast. The company declined to comment on its share price and S4 sales.

According to statistics, almost half of all smartphones sold in major European markets are Samsung manufactured. The firm takes advantage of the growing popularity of Android based devices as Samsungs Android based technology accounted of more than 70% in five major European markets.

However, that is not the case with other markets as iPhone is steadily growing its market share with as much as 3.5% this year for US market. Samsungs main competitor now covers more than 42% of US smartphone market. Recently, T-Mobile, the fourth largest mobile operator, agreed terms with Apple for promoting its iPhone device.

According to Paul Moore, global director at Kantar Worldpanel ComTech, cited by Financial Times: “T-Mobile is the smallest of the big four U.S. carriers but it does have the capacity to give iOS a boost, particularly as 28% of its customers plan to buy an iPhone when they next upgrade.”

In Europe, other Samsung competitors are quickly adding market share as Nokia using Microsoft Windows platform jumped from 4.3% to 7% in only three months. However, the devices are not so convincing in other markets.

Sony’s smartphone line has been well accepted in particular in the UK where the company has the fourth largest share. Sony’s Xperia range also uses the Android operating system.
Mr Moore commented for Financial Times: “The flagship Xperia Z has driven Sony’s growth in Britain by successfully appealing to Samsung customers. Some 38% of Xperia’s users are ex-Samsung owners, the majority of whom have upgraded from the Galaxy S2.”

It seems that Samsung needs to focus even more at retaining customers as brand loyalty of the company is still weaker than Apples mainly because its US market dominance and the exclusivity of iPhones operation system which allows a more stable retaining rate.

Samsung shares recorded a loss of 1.19% on Friday.