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Samsung to remain dominant in smartphone market

Samsung has at least another two years as the world's number one smartphone manufacturer, according to Fitch Ratings.

The global ratings agency points to Samsung's consistency in developing desirable products that hit different target price points and sizes, its position at the forefront of smartphone components and technology, and its acceptance of Android as an operating system for its success as a smartphone manufacturer.

In the first quarter of 2012, Samsung sold 45 million handsets, as compared to Apple's 35 million iPhones sold during the same period. The company reported a 5.85 trillion won (£3.8 billion) in operating profit for that quarter, an incredible 98 per cent year-on-year increase from 2011. Phones accounted for nearly three-fourths of that revenue.

Samsung, which sold some 7 million Galaxy Note phablets in a matter of months and garnered more than nine million pre-orders for its Galaxy S3, will have sold some 400 million phones by the end of 2012, Fitch projects. 220 million of those will be smartphones. That's up significantly from last year's 330 million handsets, of which 97 million were smartphones.

Though Fitch acknowledges that Apple's quarterly sales volumes might top those of Samsung during quarters in which new iPhone models are released, Samsung will maintain its leadership in total smartphone unit sales. Thanks to its varied product lines, the South Korean company has an advantage in penetrating multiple markets, Fitch said.