Samsung posted another smartphone milestone, which showed just how much of a threat it is to Apple Inc. (NASDAQ: AAPL). The Samsung Galaxy S III is often described as the only real rival to the iPhone. Apple has done its best to stop distribution of the Samsung device through court challenges to the Galaxy line’s use of Apple patents. That action may work for a while, but Samsung engineers are smart enough to build work-arounds to those patents. According to research firm Strategic Analystics:

Samsung’s Galaxy S3 smartphone model shipped 18.0 million units worldwide during the third quarter of 2012. The Galaxy S3 captured an impressive 11 percent share of all smartphones shipped globally and it has become the world’s best-selling smartphone model for the first time ever. A large touchscreen design, extensive distribution across dozens of countries, and generous operator subsidies have been among the main causes of the Galaxy S3’s success. Apple shipped an estimated 16.2 million iPhone 4S units worldwide for second place, as consumers temporarily held off purchases in anticipation of a widely expected iPhone 5 upgrade at the end of the quarter.

Global Smartphone Shipments and Market Share by Model in Q3 2012

Global Smartphone Shipments by Model (Millions of Units)	Q2 ’12	Q3 ’12
Samsung Galaxy S3	5.4	18.0
Apple iPhone 4S	19.4	16.2
Apple iPhone 5	0.0	6.0
Others	128.0	127.6
Total	152.8	167.8
Global Smartphone Marketshare by Model (% of Total)	Q2 ’12	Q3 ’12
Samsung Galaxy S3	3.5%	10.7%
Apple iPhone 4S	12.7%	9.7%
Apple iPhone 5	0.0%	3.6%
Others	83.8%	76.0%
Total	100.0%	100.0%

Douglas A. McIntyre

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