ABI Research: Samsung Phones Subsidy Ratio Higher than Apple and HTC

A new report from ABI Research shows that the average US implied subsidy for Samsung devices is 84% as compared to Apple 74% and HTC 80%. However, the report was quick to highlight that the absolute value of subsidy is $110 higher for the average Apple product.

“OEMs and their carrier partners increasingly have to continue to employ highly tactical methods to make sure that their devices are subsidized to a competitive price point in order to help prevent consumers acting to avoid their product on price point alone,” the report explains.

US Handset Subsidy Price Ratios

Stuart Carlaw, chief research officer, stated: “Samsung continues to squeeze its competitors at every turn. The Samsung Galaxy SIV is now considered on a par with Apple’s iPhone 5. Coupled with better subsidy, the breadth of its device portfolio, increasingly savvy marketing, and its excellence in channel execution, it is little wonder Samsung is dominating the mobile handset market from top to bottom.”

Senior practice director for devices, Nick Spencer, added a note of caution: “The smartphone market in particular is entering a new phase focusing on execution and price, rather than innovation and value. Samsung’s scale and supply chain excellence is allowing it to put its competitors under increasing price pressure and win market share. This is a major concern for the rest of the market, especially for smaller, less efficient vendors, as margins will be squeezed and overall market value reduced”

Posted by | Posted at June 27, 2013 18:10 | Tags: , , ,
Storm is a technology enthusiast, who resides in the UK. He enjoys reading and writing about technology.

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