Apple Inc. (AAPL) Vs. Samsung: Why is Samsung Under pressure?

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Apple Inc. (NASDAQ:AAPL)’s iPhone 6 is about to be launched soon. Samsung meanwhile has just not been facing challenges in the high end market; it has also been facing fierce competition in the low end of the market too.

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Bob O’Donnell, Founder and Chief Analyst at Technalysis Research, was on CNBC recently and he explained how troubles are looming over Samsung if it doesn’t buck and try to innovate. According to O’Donnell, the high end of the smartphone market has been difficult for both Apple Inc. (NASDAQ:AAPL) and Samsung and for the Korean phone manufacturer, it might be become worse because of the launch of iPhone soon. Samsung has been down by 5.34% YTD while Apple Inc. (NASDAQ:AAPL) has recorded a growth of 19.7% in the same period of time.

“To hear that the low end, which is where everybody expected this next billion of smartphones to come from, is also being challenged; to me it sends a red flag, not only about Samsung but about the whole lower end smartphone business.” O’Donnell voiced his concerns about the lower end smartphone business.

O’Donnell said that we will be seeing a decent growth in the hardware sector in the form of smartphones and some similar devices. He also feels that Samsung is a great hardware company, however the growth won’t be much in the hardware sector and it would be more on the software and services side in the years to come. Apple Inc. (NASDAQ:AAPL) has adapted well in this segment and the company has some nice packages to be launched in the coming year which might attract the users.

Samsung has a lot of areas of businesses and probably it has to focus more on that one business that would get it back on track. It has to learn from market players such as Apple Inc. (NASDAQ:AAPL) and try to do something out of the box to regain the market share.

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4 Comments

  1. Samsung will soon go the way of Crumbs. It will be a quick drowning or a fire sale.
    The writing has been all over the wall with unsold merchandise for at least two years.

    • This may be true, but apples world market share percentage is in single figures and Windows has nearly caught up with them, ‘the winds they are a changin’.

      • Hmmm. Just because Microsoft is “growing” from a low base, doesn’t mean that they have anywhere approached Apple’s 800 million iOS user base. Looks like you’re living up to your name at least.

        The point being is that Samsung is “just another Android manufacturer” when it comes down to it. You can only get iOS devices from Apple.

        Also remember that Android is basically everyone else in the market, and yet Apple, one company, are actually holding their own against the tidal wave of other manufacturers.

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