Despite the fact that the Apple Inc. (NASDAQ:AAPL) iPhone is one of the top smartphones on the market, there are many others out there giving it a run for its money. For instance, the Samsung Galaxy S4 has picked up a lot of steam.
At this time, Apple and Samsung are your two top dogs in the smartphone game. These two companies are racing for the top, fighting each other tooth and nail. Any advantage is one that the companies are willing to take. Best yet, it appears that things are just beginning to heat up.
While Apple Inc. (NASDAQ:AAPL) prepares to launch its next generation iPhone sometime this year, Samsung is putting a lot of its resources into the Galaxy S4. Even though this device was well received and got off to a fast start, it appears that things may be taking a turn for the worse.
According to a report by Digitimes, Samsung has reduced parts and component orders for this smartphone. Here is more from the piece:
“Samsung Electronics reportedly has revised downward its purchases of parts and components for its latest flagship model, the Galaxy S4, for the second and third quarters of 2013 due to a slowdown in demand in the end market, according to industry sources.
The parts and components orders will be enough for production of 20-25 million units of Galaxy S4 in the second quarter and 20 million units in the third quarter, the sources indicated.”
It will be interesting to see what this means to Apple Inc. (NASDAQ:AAPL) and its iPhone. Is it possible that a slowdown for Samsung could mean a pickup for Cupertino in the near future?
While this sounds like good news for Apple, the same article goes on to add that things may not be as bad as they appear. Here is why:
“But this does not mean that Samsung is losing its competitiveness in the smartphone segment, but rather indicates an underlying structural change in the industry, where demand for entry-level to midrange smartphones is rising sharply in China and other emerging markets, and the market for high-end models is becoming saturated.”
What this means is that both Samsung and Apple Inc. (NASDAQ:AAPL) may have to spend more time focused on entry-level smartphones as opposed to high-end models. This is something Apple fans have been calling on for quite some time.