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Feb 27, 2013

Samsung And Apple Will Lose The Cheap Smartphone War

Samsung (SSNLF.PK) and Apple ($AAPL) are facing the challenge of increasing competition in the Chinese market from the leading local players such as Lenovo (LNVGY.PK), Huawei, Xiamoi and ZTE (ZTCOF.PK). The Chinese market is witnessing explosive growth with 53 million cell phones being shipped in the previous quarter, a 64% year-over-year increase. In such an environment, everyone wins on paper but the real fight is for market share. For both Apple and Samsung, their early-mover advantage is eroding. According to IHS iSuppli, Samsung's market share in China fell from 20% in 2011 to 14.2% in 2012, while Apple's share dropped from 10% to 7.9% in the same period. On the other hand Lenovo, whose growth is astounding versus the shifting background of the PC market, has increased its share in the smartphone market from 5% to 10% and both Huawei and ZTE are now ahead of Apple with a market share of approximately 9% each. These dynamics demand a response from Samsung and Apple.

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  • spinnekop

    “And Apple”???

    It is impossible for Apple to lose the cheap smartphone war because Apple is not in that war. Apple is not planning on getting into that market at all. Rather stupid article. The only way to drum up interest is by bringing up Apple’s name into it.

    • Gary Opas

       I was going to reply with the same thing. Apple would be happy to lose the cheap cell phone way without ever having to fire a shot. What they care about is winning the high end cellphone war, or at least selling as many as they can produce, which is currently the situation.
      I wonder if the author also thinks that Apple lost the cheap MP3 player war, the cheap PC war or the cheap Tablet war.

Peter Pham is a capital market specialist and entrepreneur.  With expertise as a Head of Institutional Sales and Trading he closely watches the market and probes for investment opportunities utilizing a unique blend of quantitative trading experience and macro trend analysis… (read more)

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