In the video below, Fool analyst Lyons George talks about Samsung's dominance over rivals Apple (NASDAQ:AAPL) and Nokia (NYSE:NOK) in the smartphone market last year.

The Korean manufacturer shipped 213 million smartphones over 2012, setting a record for smartphone shipments. The number for Apple: 135.8 million. While Apple's numbers represent 46% growth year over year, the iPhone's market share remained stagnant at 19%, Lyons says. Samsung's market share jumped from 20% to 30% in that time.

Nokia, meanwhile, saw its share drop from 15% to 5%.

So what is Samsung doing differently?

It is covering the market at every corner, from the high-end Galaxy S and Galaxy Note to low-end models like the Galaxy Y. If you have a pulse and a wallet, there's a Samsung phone for you, Lyons says. But whether that's a profitable strategy remains to be seen. Samsung's margins are much smaller than Apple's.

But Apple cannot afford to ignore the strategy, and it's a good bet the iPhone maker will enter the lower end of the market in the near future, Lyons says.

Lyons George has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.