While there’s absolutely no denying that Samsung is the king of the Android smartphone arena right now, selling more Android smartphones than anyone else out there, it’s also a fact that it’s difficult at the top. While it’s easy for fans to think that the arrow can keep on going up and up, but in reality it’s not that easy, at all. Not too long ago, Samsung gave guidance on their second-quarter earnings for 2014 and the news was that profits for the company were down 24% from the same quarter last year. Obviously, this is cause for concern for Samsung, but it’s far from the death knell many make it out to be.
Many factors have contributed to Samsung’s decline in profits, with the larger factors being the rise of 4G LTE in emerging markets like China, where Samsung doesn’t currently sell 4G smartphones at affordable prices. Throughout markets like India, China and other emerging markets Samsung is losing ground to cheaper devices that often offer a better or similar experience. However, in the West the company’s old foe Apple is experiencing a bounce-back of sorts. In May, it’s been reported by research firm, Counterpoint, that Apple sold 7 Million iPhone 5S devices with the Galaxy S5 selling just 5 Million in the same month. Obviously, there’s more to it than people don’t want the Galaxy S5, and it’s more than likely that reductions on the iPhone 5S in the run-up to the iPhone 6 have brought in more customers than an 8-month phone would normally get.
Samsung has risen to the top relatively quickly, and with their devices remaining very similar to their previous devices, at least in the average consumer’s eyes it’s not surprising that Samsung’s success hasn’t continued quite as explosively as it has done in the past. With new products coming from Samsung in the Fall, and a rumored Galaxy F (or Galaxy Alpha) to combat the iPhone 6 with a new premium design, we wouldn’t be surprised to see Samsung bounce back and take 2014 out from under Apple’s feet. What do you guys think to this? Is Samsung in need of new devices or is it just a fluke that Apple has been selling more devices recently?
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