Apple and Samsung have similar problems.
At the beginning of 2019, we reported that Apple for the first time during the reign of Tim cook changed his Outlook on quarterly earnings downward. This was stated by the head of Apple, wrote an open letter to investors. However, as it became known today, not just Apple having problems. According to sources, Samsung is also preparing for a fall in profits for the first time in two years.
As reported by verified sources South China Morning Post, the profit of Samsung in the final quarter of 2018 was lower by 12% than the year before. According to analysts, Samsung fails for the same reason as Apple. On the income of the South Korean tech giant is affected by the reduction in the smartphone market of China.
Previously, Tim cook in his open letter said that Apple made a mistake in the forecasts of the smartphone market of China. Because of this, companies had to change their earnings forecast for the first fiscal quarter of 2019. It is assumed that a similar miscalculation in the analysis has occurred and experts from Samsung, which did not foresee such a serious reduction of the smartphone market in China.
Experts also believe that the failure of Apple and Samsung impact even more increased activity of Chinese manufacturers of smartphones. The latter, in particular, Huawei and Xiaomi, releasing cheap smartphones with a minimum mark which are particularly popular in China. Analysts believe that dramatic change in the situation of Apple and Samsung needs to reconsider its pricing policy.