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Price gap between Samsung and Apple smartphones reaches new record
According to a recent report by Strategy Analytics, the difference between the average selling price (ASP) of Samsung and Apple smartphones increased in the last quarter of 2016. The average selling price of iPhones was $692, while Samsung smartphones sold for $227. This means that the gap between the average prices has reached a new record of $465.
This comes as no surprise. The reason for the big price difference is because the two companies have very different business strategies. Apple has always been focused on the premium market whereas Samsung is selling smartphones in basically every price range. There’s the high-end Galaxy S generation, the mid-range A series, and the budget-friendly J and C devices.
Because it does a lot of business in emerging markets where entry-level and mid-range devices are in high demand, Samsung’s average selling price has decreased significantly over the years. In 2012, for example, the company’s smartphones retailed for $438 on average. Apple’s ASP, on the other hand, was around $600 in the same year.
The report also claims that the price gap will likely increase in the near future. This means that the average selling price of iPhones will go up eventually or that Samsung’s will go down – or both. With the tenth anniversary iPhone right around the corner though, we think we know who’ll be responsible for widening the margin.
Are you surprised by the big price gap between iPhones and Samsung smartphones? Let us know down below.