Apple and Samsung Defining Their Target Territory – Developed vs. Emerging

The two titan of Smartphone segment in just concluded quarter clearly demonstrated the changed dynamic of market place. Apple post 5C and 5S outclassed Samsung in and out in its home turf whereas struggled in emerging market. Samsung on the other hand in its quarterly result demonstrated their continued growth in price sensitive geographies such as Eastern Europe, LatAm, BRIC countries where Apple is struggling due to high price associated with device price. The Samsung managed to hold on to Smartphone growth in terms of volume and earning as they used volume as advantage point to get the cost of production even lower and offered discounted price point devices which entered into phase 2 of its lifecycle. The move paid well for Samsung in Eastern Europe, LatAm and BRIC. Apple also showing high traction in it’s another stronghold Japan and many parts of ME and Western Europe. Samsung in quarterly result indicated that coming quarter would be low single digit whereas Apple is expecting high single to double digit growth. It would be interesting to wait and watch the Holiday quarter result of both the companies as the result will sure bring cheer for one of the company investor and but it can’t be cheer for both the company investor. It is also possible that in a market share fight between Smartphone Titans, smaller players like Sony and LG will get benefited.

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