Devices running Google’s Android operating system, particularly the Samsung Galaxy S3, have sold 40 million units after just seven months on sale. And Apple’s iPhone, that once dominated the top end of the smartphone market, could be losing ground to rival Samsung Electronics that boast an 89% surge in operating profit and sales of more than 100 million Galaxy S devices.
According to NewsCentral Media, Apple has cut its orders from Asian suppliers for iPhone 5 components. The news site reports that Apple’s orders for displays between January and March have been cut in half, prompting talk that sales have not met the company’s expectations.
Samsung has been able to compete effectively against Apple in markets such as South Africa because it offers phones at every price point, says Arthur Goldstuck, MD of World Wide Worx. Goldstuck is convinced competitive pressure means that Apple will have to release a cheaper iPhone, despite denials from Phil Schiller, Apple’s senior vice-president for marketing.
However, investors will have more insight when Apple reports its next quarterly results on 23 January 2013.
