Shifting Smartphone Market Could Hurt Apple and Samsung Profits
Apple (AAPL) has declined 36% since September, as it continues to lose smartphone marketshare. Its earnings report on Wednesday, which revealed that the company’s earnings growth has flatlined, hasn’t helped matters.
Samsung has been the main beneficiary, with shares climbing 10% over the same period and its smartphone marketshare jumping to 29%.
It’s not all rosy for Samsung going forward, though.
As Reuters says, “The issue for both players is that growth is now shifting away from developed countries like the U.S., to more budget-conscious emerging markets like China. And that means, even if they can ramp up their sales, they may find their legendary margins squeezed more than ever.”
Related Topics: Stocks, Tech and Innovation, U.S.
