Ghost of Galaxy S5 still haunts Samsung as Apple's sales soar

The iPhone 6 and the iPhone 6 Plus continued their brilliant performance in the first three months of the year as Apple amassed revenues of £8.9bn, a rise of 33 per cent in quarterly profits.

Apple owed the surge mainly to Chinese customers who purchased 72 per cent more iPhones than in the same period in 2014. Overall, Apple sold 62 million iPhones in the three months as compared to 74 million in the previous quarter, totaling up sales of an impressive 136 million units in six months after the new iPhones were launched.

Usually, Apple performs well in the final quarter of every year with its customary September launches. These numbers drop down significantly in the following quarters allowing other gadget makers to swell up their numbers. As a result, the first quarter results have surpassed expectations of analysts around the world this time.

At the same time, Mac sales rose by 2 per cent while iPad sales went down by an alarming 29 per cent over the same period last year.

The first quarter results have surely come in as a dampener on Samsung's hopes of staging a meteoric comeback in the smartphone market. Having launched the Galaxy S6 and the Galaxy S6 Edge in the beginning of March, they have failed to stem the tide of iPhone sales so far.

With hardly any customer expected to own an iPhone 6 and the Galaxy S6 at the same time, Samsung banked on dwindling iPhone sales in the first quarter to pack impressive numbers for its new phones come April. With Apple maintaining consistency in iPhone sales, it ensured most customers had already purchased their iPhones by the time Galaxy S6 hit stores across the globe, especially in China.

The trend could also be owed to the disastrous performance of the Galaxy S5 released last year that led Samsung to initiate Project Zero to revive its fortunes. The failings of the S5 led to an all-time drop in customer expectations from Samsung as far as top-end smartphones were concerned, which could also be the reason why customers chose iPhones even with a new Samsung flagship nearing its launch.

The news comes at a time when Apple is set to set new records again with the launch of the much anticipated Apple Watch in April which could easily offset any loss of revenue from the aging iPhones in the second quarter. 

Apple has also raised quarterly dividend by 11 per cent and shareholders can now buy back stocks to the tune of $200bn by 2017, up from $130bn at present.

Top Articles

MobileChoice Reviews

Leave a Comment