On Friday, research firm Strategy Analytics reported that for the first time in four years, Apple has relinquished its title as the world’s most profitable mobile manufacturer. Samsung was able to come in and steal the title by earning a total of $5.2 billion in mobile profits during the second quarter. However, Samsung’s mobile division listed an operating profit of $5.6 billion, so the difference between the two numbers apparently comes from non-handsets. Apple recorded massive profits as well, but fell noticeably behind Samsung, reporting $4.6 billion in operating profits.
According to the firm’s report, Samsung’s success can be attributed to the company’s “strong volumes, high whole sale prices, and tight cost control.” Apple, on the other hand, is finding increased global competition that may require the company to reevaluate its strategy.
Apple may already have a new strategy in sight, as numerous reports indicate that the company is already working on a more affordable, scaled-down plastic variant of the iPhone. Apple is reportedly planning to release the entry-level model alongside the iPhone 5S later this year.