Or is Apple safe from the "high end Android hardware at break-even prices" competition? A big part of why Samsung is doing poorly (relatively to the past) is because of Chinese companies using the Amazon model of selling hardware at break-even and make profits from "services." http://asia.nikkei.com/Business/Exe...-of-100-million-smartphones-in-2015-president Our business model is similar to the Amazon's Kindle e-book store. The difference is that Amazon sells e-books, but we provide services to MIUI users. These include online ads and fee-charging games. We also sell earphones and peripherals, as well as Mitu, our official character. We have sold more than 2 million Mitu dolls. They have higher profit margins than smartphones, which we sell at prices that are barely above their costs. Xiaomi smartphone sales by year: 2012: 7.19 million 2013: 18.7 million 2014: 60 million will be achieved "relatively easy" 2015: projected 100 million p.s. Samsung smartphones profits haven't just declined this quarter (July, August, September 2014), they have been on a downward trend for the past 3-4 quarters if i remember correctly.