Will what happened to Samsung (profit down) happen to Apple to some extent in 2-3 yrs

Discussion in 'Alternatives to iOS and iOS Devices' started by EbookReader, Oct 8, 2014.

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Will what happened to Samsung (profit down) happen to Apple to some extent in 2-3 yrs

  1. Yes, to some extent

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  2. No, the impact will be minimal

    1 vote(s)
    100.0%
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  1. EbookReader, Oct 8, 2014
    Last edited: Oct 8, 2014

    EbookReader macrumors 65816

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    Apr 3, 2012
    #1
    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.
     
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