Both Apple and Samsung have been struggling of late, particularly when it comes to the sales of their high-end smartphones. Apple has simply priced its flagship line out of reach for many, with customers more likely to hang on to their iPhone longer rather than upgrade year-in-year-out as they might have in the past. Samsung, on the other hand, has also had to contend with the rise of Chinese Android smartphone makers undercutting it as it did to the likes of Sony.
New data from Counterpoint Research shows that Samsung’s US customers have been tempted to dabble with Android devices from other companies. When it comes to first time Pixel 3 owners, a staggering 51 percent had previously owned a Samsung smartphone. By comparison, only 14 percent of new Pixel 3 customers switched from an iPhone. It was a similar picture for new OnePlus 6T owners. In this instance, 37 percent switched from a Samsung device while just 16 percent came over from an iPhone.
It helps to explain why in Samsung’s most recent guidance, it is expecting a sharp drop in year-over-year in operating profits of 60 percent. This suggests that it is not just in the US that Samsung is facing a customer exodus. While the Pixel 3 is priced similarly to the Galaxy S9/10 range, the OnePlus 6T offers high-end features at a much lower price point. It also offers a more stock-like Android experience in line with the Pixel 3. One also wonders if the switchers could also be driven by the promise of faster OS updates.
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