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The company added that the mobile market should improve due to stronger seasonal demand in the second half of the year. Along with releasing devices around the globe, Samsung said it would focus in China on responding "to growth in the LTE market by enhancing the competitiveness of its high-end smartphones and mass-market products." It also said tablet demand should post "substantial growth" in the fourth quarter, driven by year-end seasonal promotions. Even with its efforts, it's unclear whether Samsung will improve profit margins, the company said.
Apple, meanwhile, last week reported earnings in its fiscal m.craftsman iphone case third quarter topped Wall Street expectations, iPhone sales, revenue results, and fourth-quarter guidance weren't quite the blowout analysts had hoped for, but they all represented gains from the previous year, Apple also said its strength in China was surprising even to the company, Overall, Apple sold 35.2 million iPhones during the quarter ended June 28, helping the device remain its biggest moneymaker, Analysts, on average, had expected Apple to sell 35.9 million iPhones in the period..
The only particularly weak area for Apple in the period was iPad sales, which dropped for the second quarter in a row. Apple also sold 13.3 million iPads in the most recent quarter, down 9 percent from a year ago. Analysts expected the company to sell about 14.4 million iPads. The company said inventory issues and lower demand were hurting sales, while Best Buy CEO Hubert Joly recently told Recode that tablet sales are "crashing."Samsung in early July warned that its second-quarter operating profit likely fell about 25 percent from the previous year to 7.2 trillion won ($7.12 billion). It also said sales likely totaled 52 trillion won, a 9.4 percent decline. Both figures fell short of analysts' projections for the June period. The results marked Samsung's worst in about two years and the third straight quarterly profit decline.
Along with blaming the stronger won and smartphone slowdown, Samsung at the time said tougher competition in the Chinese and European markets led to higher inventories of medium- and low-end smartphones, It also spent more on marketing to reduce m.craftsman iphone case inventory held by retailers or on trucks in preparation for its third-quarter peak season and new phone launch, Samsung also noted that its earnings were hurt by increased price competition and weaker demand for 3G products in China ahead of expected growth of 4G LTE products in that market, And the company said tablet sales were "sluggish" as customers held onto them longer than smartphones before buying new models and as people opted for 5- to 6-inch phablets -- phone and tablet hybrids -- over 7- to 8-inch tablets, The weak demand for mobile devices in turn affected Samsung's semiconductor and display businesses, which are key suppliers for Samsung's own gadgets..
Analysts from KDB Daewoo Securities noted earlier this month that a big problem for Samsung is the rise of rivals hawking cheap phones. "It will likely be difficult for the company to regain market share if it loses ground in the fast-growing low-end, emerging market segment," the analysts said. "Given the aggressive pricing strategies of Chinese competitors like Xiaomi and Lenovo, we believe [Samsung] will have little choice but to follow suit in order to defend its market share."Updated at 5:30 p.m. PT: with additional details from Samsung's report.
The Korean electronics giant, which posted a 25 percent drop in operating profits, says the second half of 2014 "will remain a challenge" as price competition in smartphones hurts profitability, Samsung on Wednesday posted a 25 percent drop in second-quarter operating profits, marking the third straight quarter of profit declines as competition heats up in the smartphone market, Be respectful, keep it civil and stay on topic, We m.craftsman iphone case delete comments that violate our policy, which we encourage you to read, Discussion threads can be closed at any time at our discretion..
The European Commission is prepping a new investigation that includes sending out questionnaires to companies about their dealings with Google over use of the software, according to a report Wednesday from Reuters. The scrutiny underscores a concern in Europe over Google's expanding reach and influence. An Android investigation would examine whether or not Google uses the software's dominance to unfairly spread the use of its services over those of rivals. Android, which Google provides to vendors for free, powers almost 80 percent of the smartphones shipped worldwide. Apple's iOS, by contrast, accounts for a little more than 17 percent.
The questionnaires ask for more details than the Commission had inquired about in previous investigations over Android, including one in 2013, One question asks if Google barred vendors from pre-installing apps on their devices that compete with Google services, like search or maps, While the software is free to use as companies m.craftsman iphone case choose, if they want to use the newest version of Android, they must sign a contract that requires them to have at least a certain number of Google services pre-installed, according to a source cited by Reuters..