Apple's Smartphone Share Poised To Overtake Samsung

Apple Inc. (NASDAQ: AAPL) could emerge from 2015 as the world's largest smartphone maker, according to a market research firm.

The company's iPhone products closed a persistent gap with Samsung Electronics (OTC: SSNLF) to a near tie in the recent fourth quarter, according to International Data Corp.

After 11 quarters as the No. 2 smartphone provider in terms of shipments, Apple lagged Samsung by just 600,000 units in the recent period, versus a 33 million-unit gap a year earlier.

Continued success from Apple, coupled with the ongoing challenges facing Samsung, could enable Apple to overtake Samsung during the 2015 calendar year, according to IDC's Ryan Reith.

Samsung "will either have to accept lower margins or revamp its high-end strategy to compete with Apple" if it wants to retain its number-one ranking, Reith said.

Samsung's challenges come also from the increasing number of low-cost Android manufacturers that are putting out products at much lower margins, according to Reith.

Samsung's fourth-quarter shipments fell 11 percent to 75.1 million units. Its smartphone market share fell to 20.01 percent, from 28.8 percent a year earlier.

Apple's shipments in the recent period grew 46 percent to 74.5 million units, jumping to a 19.85 percent market share, from 17.4 percent, according to IDC.

Other market leaders include Lenovo Group Ltd., (OTC: LNVGY), Huawei Technology Co. and Xiaomi Inc., each with single-digit world market shares.