Samsung vs. Apple: Apple is Winning the War?
Samsung and Apple have been battling it out in the smartphone arena for at least three years. The big question is: Who will conquer the world and get dominion in the consumer electronic business?
It seems that Apple is winning two important battles. They are garnering more wins in both the high-end and low-end smartphone domains. At the high-end, Apple has retained its stellar performance due to strong brand recognition. It continues to price its new phones at a premium. Even with the increase of Android based competitors, the iOS has retained its strong momentum; showing no signs of slowing down.
At the low-end side of the spectrum, androids from Chinese makers like Xiaomi continue to pop up with phones similar to Samsung, but with a lower price tag. While newer IPhone models are still priced higher, Apple is able to cover the lower end market by making their older models available at lower prices. This way, Apple ensures that it does not completely ignore the lower end market.
Apple is still in the lead when it comes to profitability in the smartphone department. On the other hand, Samsung's chief financial officer is feeling a little bit insecure about the Korean electronic titan's profitability as of the first half of 2014.
According to Business Insider, during the second quarter of this year, the market share of Samsung decreased to 25.2%. During the second quarter of last year, it was at 32.5%. So there was a substantial decline. Apple also had a decrease in market share, but the downward slide was lesser.
The Motley Fool also pointed out that Samsung definitely still has the scale and the name, but they see tough times ahead as competition remains stiff and margins are predicted to be still on a decline.
As small battles continue to be ensued between these two giants, someone is bound to be the winner. Words are used to tell stories, but in this case the story will be written in numbers. For the moment, it looks like Apple knows what it is doing while Samsung is still figuring out what to do next.