Apple, for the first time in 13 years, has registered a growth slump. The iPhone maker has reported a revenue of just over $50 billion well short of the analyst’s $52 billion predictions. A profit of over $10 billion. Don’t get me wrong, that solid numbers for any listed company but Apple is starting to stumble as the overall smartphone market is slowing down and the biggest culprit is the iPhone.
Apple replies on iPhone that brings in two-thirds of the revenue and this dependence is killing Apple that is also prophesied to hit a growth roadblock in the next quarter. While this is the case in Cupertino, the south Korean Samsung is an entirely different story. All the major players in the smartphone industry are slowing down but Samsung has shown a much-needed profit growth bringing in more revenue when compared to the same period last quarter.
Samsung has been working hard in various departments to make this growth happen after seeing a decline for 7 straight quarters. One of the top reasons for this positive results is the release of the latest flagships, the Galaxy S7, and the S7 edge. The phone has managed to sell in numbers exceeding Samsung’s own expectations. The Korean giant has also been cutting corners and has actually released 40% fewer phone models when compared to previous years leading to cost cutting measures in the inventory and research departments. This decreased the overall expenditure.
Not only the smartphone department, other units such as display and semiconductor departments have also performed well. The overall profit could be just over $3 billion.
The internal word is that Samsung has brought in more revenue than the earlier anticipated figures. Samsung is leading the pack in times of trouble and Apple is lagging. The iPhone 7 is rumoured to bring in minor refreshments and analysts have predicted that the sales will be flat for the iPhone 7. Samsung has the best chance to get ahead of Apple with the Note 6 if the smartphone manages to gather enough features and users.
