Apple iPhone 5 faces weak demand and Samsung sells 100 Million Galaxy S devices

Samsung has announced that it has sold more than 100 million Galaxy S devices since May 2010. The sales of Galaxy S III smartphone mainly contributed to this with 40 million SGSIII devices sold in 7 months. The Galaxy S II took around 20 months to reach the same number. Currently, the average daily sales of the Galaxy S III smartphone are 190,000 units.

The biggest competitor of Samsung Galaxy S devices, the Apple iPhone has 250 million devices in sales so far. While this is quite an achievement by Apple, it is important to note that Apple iPhone was first announced and sold in June 2007 which gives it a 3 year head start on the Samsung Galaxy S devices.

Apple has launched five different iterations of the iPhone since the launch in 2007. Apple iPhone has been the hottest selling smartphone in the market for many years now. However, introduction of Android by Google has changed the smartphone industry in many ways.

With Android, Google introduced the Open Handset Alliance, which allows the hardware, software and telecommunication companies to associate ogether and advance open standards for mobile devices. Google provides the android operating system for free, which means that any smartphone hardware maker, i.e. Samsung, can use the operating system and sell the devices. This marketing model has allowed Android to see very big growth in the tech industry within a relatively small amount of time. There are many advantages of using Android over Apple iOS, and we have listed 10 Reasons why Android 4.0 (Ice Cream Sandwich) is better than Apple’s iOS.

Smartphone Market - Smartphone Purchases

Apple introduced their latest and greatest iPhone 5 back in September 2012. The iPhone 5 managed to sell 5 million devices during the first weekend, however, we haven’t heard anything about the sales figures ever since.

Apple Inc. has cut its orders for components for the iPhone 5 due to weaker-than-expected demand, people familiar with the situation said Monday. Apple’s orders for iPhone 5 screens for the January-March quarter, for example, have dropped to roughly half of what the company had previously planned to order, two of the people said.

– The Wall Street Journal

Apple is experiencing weaker than expected demand for the iPhone 5, and they have cut the orders of the screens and other components in half. If the sources are correct, then this would be the first time the iPhone has seen a decline in the demand. Much credit can be given to the competitors like Samsung selling more and more Android devices like the Galaxy S III. On the other hand, RIM is also preparing the release of their new and upcoming BlackBerry 10 devices and the anticipation of BB10 may have affected the sales of the iPhone 5.

AAPL Chart

The stock market hasn’t taken this news very well as Apple stock has fallen to a nine month low of $485/share. At its peak with $705/share, Apple was announced the most valuable company but it looks like the competition is giving Apple a run for their money.

Apple has been rewarded for its innovation. The market is expecting more magic. Apple is kind of stuck, for a company that executes so flawlessly. They are printing money, and the market doesn’t care.

– Howard Lindzon, Founder of Stocktwits.

What do you think? Is the iPhone finally going to fade away especially with the strong branding of Samsung Galaxy S devices and upcoming BlackBerry 10 devices?

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Sources: The Wall Street Journal, The Verge, Nielsen