Samsung Admits Only a Third of Its Smart Phones In Same League as Apple's iPhones; Is 'Fonblet' Next Big Thing?

Samsung Electronics held a meeting with concerned investors in Nov. 6 and told them that the Samsung sold only a third of its smart phones in the same level as Apple Inc's iPhone. The head of Samsung Mobile has also admitted that the company relied on low-cost mobile phones to boost its sales performance. This means only a few of Samsung's smart phones were in the same class as the iPhone.

According to Bloomberg, Samsung has overtaken Apple Inc in smart phone share but the latter has used its sales of cheaper phones in emerging markets to increase earnings in its mobile division. The growth in high-end smart phones has slowed down due to market saturation.

In contrast, Apple Inc's iPhone sales increased by 26 per cent compared to 2012 figures. All of the company's smart phones are considered high-end since the late co-founder Steve Jobs refused to let go of the iPhone's premium image.

According to Strategy Analytics Executive Director Neil Mawston, Samsung relied on "mass-market models" like the Galaxy Y model to boost mobile sales.

Based on a report by ETNews, Samsung expects total smart phone sales for 2013 to be between 300 to 310 million. The Korean electronics giant also plans to sell 360 million units of smart phones in 2014 with 126 million reportedly to be premium phones.

Reports indicate that Samsung's latest flagship phone, the Galaxy S4 lags behind Apple's iPhone 5C in benchmark tests. All of Samsung's phones do not have the 64-bit chip and battery efficiency of the iPhone 5S.

Samsung coins "fonblet"

Samsung has laid claim to the term "fonblet," referring to the market for a phone having almost the same size as a tablet. What many people know as the "phablet" category, Samsung has decided to call it a "fonblet." According to reports, Samsung's "fonblet" includes not just a large display but also features handwriting recognition like its Galaxy Note product line.

Samsung is expected to release a Galaxy S5 soon and the "fonblet" may replace the "phablet" category of smart devices.