Apple vs Samsung The Battle for China

Apple announced its fourth-quarter earnings results on Monday, October 28. The technology bellwether, which saw shares slump by 45% in the past six months, posted revenues of $37.5 bn and a net quarterly profit of $7.5bn, as compared to revenues of $36bn and a net quarterly profit of $8.2bn for the same quarter a year ago.

Apple’s results initially disappointed investors, in spite of the technology giant selling 33.8bn iPhones in the last quarter alone. Shares fell over 2% following the earnings release but soon rebounded to trade close to similar levels last week.

Apple is hoping to announce a potential deal with China Mobile – the world’s largest mobile phone company.

Apple’s foray into the Chinese mobile market is likely to lead the firm into a headlong battle with Samsung – current leaders with an 18.3% share – compared with Apple’s 5%.

But how does Apple measure up to Samsung from an investor’s standpoint? Will the company succeed in making significant inroads into the Chinese market or will it fall short?

Here are some statistics to help you along the way. Alternatively, visit our trading and spread betting pages to learn more.

Updated on October 28, 2013

Here’s a summary of the statistics included in the infographic above.

City Index trader statistics

Ratio of Apple trades over Samsung trades at City Index: 73:1
80% of City Index clients who have traded Samsung have also traded Apple
82.8% of City Index clients who have traded Google have also traded Apple
3.2 days is the average duration of an Apple trade at City Index
12.3 days is the average duration of a Samsung trade at City Index

Apple Q4 earnings results (28^th October 2013)

Q4: Earnings per Share (EPS): $8.26
Net profit: $7.5bn
33.8mn iPhones sold vs 26.9mn iPhones a year ago (September record)
14.1mn iPads sold vs 14mn iPads a year ago
4.6mn Macs sold vs 4.9mn Macs a year ago
Gross profit margin: 37% vs 40% in Q3

Q1 2014 guidance

Revenues between $55bn and $58nm
Gross margin between 36.5% and 37.5%

Apple vs Samsung

IDC predicts that China’s smartphone unit shipment will increase by 25% in 2014 to 450m
Apple’s market share is set to double to 10% by 2014. Samsung’s market share is currently 18.3%
In 2013, China’s smartphone unit shipments were expected to reach 360m
According to CIRP, Samsung overtook Apple for share of the US mobile phone market in the last quarter
11% of Apple customers have switched to Samsung in the last year
Samsung has 3 times more flagship stores in China than Apple
First time smartphone buyers prefer Samsung by a ratio of 3:1
China mobile has 700mn mobile subscribers, who Apple could then sell to, as part of a deal with China Mobile
Apple is expected to reach a deal to sell iPhones early next year

US phone brand share:

Apple: 34%
Samsung: 38%
LG: 8%
HTC: 8%
Motorola: 4%
Nokia: 3%
Other: 3%
BlackBerry: 2%

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.