November 22, 2024

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[THE INVESTOR] The price gap between Apple and Samsung Electronics’ smartphones widened to a record-breaking US$465, according to a US research firm.

The latest report released by Strategy Analytics showed that as of May 5, the gap in the average selling price between the two tech giants’ long-term evolution phones widening to over US$400 in the fourth quarter of last year. Samsung Electronics’ Galaxy S8, which was launched in the second quarter this year, was not included in the research.

In the October to December period, the average selling price of Apple‘s LTE phones peaked to $692, while that of Samsung’s LTE phones stood at $227. 

During the period, Apple‘s iPhone 7 enjoyed a boom while Samsung had to fill in the gap left by the discontinued Note 7 with its low-end phones.

“The widening gap between the two handset makers is not temporary and it is likely to further rise,” the SA report said.

The widening price gap is driven by the differing sales strategies of Apple and Samsung. 

Apple, which has focused on premium phones, has maintained an average selling price of around $600 since 2012, with the price now closer to $700.

Samsung, which has unveiled diverse phone models, has lowered its average selling price of $438 in 2012 to around $200 now. Samsung has increased market share in emerging nations with its budget phones, including the Galaxy A, J and C series, while targeting the premium phone market with the Galaxy S series.

By Shin Ji-hye/The Korea Herald (shinjh@heraldcorp.com)