Samsung and Apple in Trouble with their Global Standing With Other Players Catching Up

Earnings and sales reports typically come out on a quarterly basis. For example, during the first quarter of 2014, the verdict came out that Apple and Samsung were still the top 2 smartphone makers around the globe. LG stayed in third place while the Chinese newcomer, Xiaomi, was able to enter the top 5. It actually reached number 4.

Ahead of the third quarter earnings and sales reports, ratings agencies try to make educated predictions on how the companies will fare. Fitch, a well-known ratings agency, estimates a decline in the sales of both Samsung and Apple due to the surging popularity of lower cost phones with high-end specs in emerging markets according to Reuters. Competition continues to gain momentum due to strategic pricing. Emerging markets like India and China, place more weight or importance on lower prices vs brand names. These emerging markets are highly critical areas due to their high population.

Smartphones like Xiaomi, Lenovo.Micromax and Huaweii are just some of the brands penetrating the world market. In one way or another, these Apple and Samsung rivals are eating up bits and pieces to ensure that they get a bigger piece of the pie.

The predictions are not solely based on performances in emerging markets. Analysts also predict a decline in the sales of Samsung and Apple handsets in developed markets. Saturation in these areas is attributed to the fact that consumers only see slight upgrades from one model to the next model. There is a general feeling that the developed markets prefer to replace their handsets if a revolutionary, cutting-edge model is made available. If this is true, then slower growth may not just be an expectation, it may become a reality. Of course, it is important to note that these are mere projections and predictions of the raters. The real stories will come out as soon as the official earnings and sales reports are released.