Samsung and Apple ‘Growth To Stagnate’ reports as cheaper players enter smartphone wars

The winds of change are blowing through the smartphone industry and they are not in favour of the established forces. According to a report released three days ago by global ratings agency Fitch the seemingly boundless growth of Samsung and Apple in the handheld device market may be coming to an end sooner than you think.

Even such enticements as larger screens and wearable accessories will not be enough to convince buyers to opt for the products of these two reputable brands. Users will be draw away by firms cheaper, equally functional devices.

The two tech behemoths currently jointly hoard close to 50% of the smartphone market.

By next year, 2015, this will be down to less than 40%. This will partly be due to the fact that production volumes have been sliding downwards and are predicted to stagnate at 450-460 million in 2015. But the key deciding factor will be the emerging markets.

And these markets, Fitch says, are keen on less flashy phones that can still offer the core functions of a smartphone. For them what matters is the price of the device, not what extra functions it has or design aesthetics.

Samsung and the iPhone’s competition is not other recognisable phone brands such as LG and Sony, it is more obscure names, also from Asia. Some of them, like China’s Lenovo, are not complete strangers to the tech industry. Huawei, another of these upstarts, is also no stranger to mobile phone users.

These two companies are joined by India’s Micromax Informatics and another Chinese newcomer, Xiaomi.

This news of Samsung and Apples slipping grip on the smartphone comes as the latter shapes up to launch the highly anticipated iPhone 6 which features a much bigger screen than we’re used to seeing on Apple phones.

Leaked info and images of the device also hint at a much slimmer device than we’ve seen from the California-based firm.

Samsung has recently launched the Galaxy S5 which is proving to be a hit. It features a waterproof casing and a mesmerising 5.1-inch display. Both these flagship devices push the performance envelope, boasting processor speeds of over 2.5 GHz and RAM of 2 GB.

But would be buyers, Fitch suggests, will be put off by the price tag of these devices. Instead of spending £350 on an S5, they will go for a less renowned brand which can cost as little as £100.

 

I have over 5 years experience in online publishing, specialising in mobile phones, gadgets and new technology.
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