The reports for Samsung preliminary earnings in the December quarter, and it looks like the spread of the smartphone is doing more harm than good, even for Apple. The South Korean giant’s operating income reached $5 billion, which is lower than what analysts expected, and similar results came for Apple. Is it the end of the iPhone and Galaxy?
Analysts Expect A Bigger Slowdown in Apple iPhone and Samsung Galaxy Sales
Smartphone sales are declining, simply because everyone who wants an iPhone probably already has one. Samsung’s earnings were only 15% above last year’s holiday quarter, when it faced a 50% decline in premium smartphone models. The main reason for the decline was attached to the widespread of lower end Chinese smartphones and a weak smartphone product mix. This was the same case for Apple.
Regardless of the amount of lawsuits these two firms have thrown at each other, it looks like the fates of Apple and Samsung are intertwined. Both the iPhone 6 and iPhone 6S suffered declines in sales, and the same happened with Samsung’s Galaxy 6S and the 6 Egde. The demand for smartphones just is not high enough anymore. Chinese markets are starting to emerge and the economy is starting to slow down. And it is affecting the global market.
The Firms Have Not Released Details on Actual Sales Volumes
The December quarter was a vague report for both of these companies. Apple is set to release iPhone sales details later in January. Samsung has declared they will not, simply because they never have detailed Galaxy sales.
Have We Moved On From the Smartphone?
As time progresses and these reports are released, we could be surprised to find that Apple and Samsung are not cutting things as well as they used to. That is probably why every new model of the iPhone and Galaxy is more ambitious and more advanced, and why Apple is dipping their feet in other industries.
Samsung is a powerhouse in Korea and around the globe. There have been faring well in the global market, but they already have hand in other industries. If push comes to shove, Samsung has an entire roster of products and services to fall back on. As for Apple, it’s already making moves to develop better AI and a self-driving car. It’s possible we may have already moved on from the smartphone.
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