“Samsung’s spectacular run of profit growth may be coming to an end,” Daniel James writes for The Motley Fool. “The world’s largest maker of smartphones and televisions expects its second consecutive quarter of declining profit, sending some alarm bells ringing for analysts.”
“The company is suffering from increased competition from cheaper manufacturers, such as new entrant Lenovo on the one hand, and saturation in the higher end market on the other,” James writes. “As such, commentators believe the company will be forced to implement a number of cost-cutting initiatives, in addition to working on lower-cost smartphones.”
“Apple is facing many of the same problems as Samsung in its smartphone division. Samsung’s American competitor is now looking to challenge it in its home field, namely the 5-inch screen arena,” James writes. “The iPhone 6 is likely to have a considerably larger screen size than its predecessor, with Apple finally recognizing the popularity of larger screens and the low-priced Android phablets. Reports indicate that Apple will be releasing a 4.7-inch smartphone as well as a 5.5-inch phablet this year.”
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