For the past few years, Apple has seethed as it watched Samsung Electronics grab the buzz and market share lead with its Galaxy phones.
It wasn’t just losing that bothered Apple. It was getting spanked by a company Apple felt had essentially copied its best smartphone and tablet innovations. Apple launched a global patent litigation war against Samsung that produced a few victories along the way, but failed to fundamentally change the competitive dynamic.
Now, it turns out, Samsung appears to be in free fall. And it’s collapsing all on its own, without needing any help from Apple’s legal eagles.
Samsung has warned that its third quarter earnings were going to be even worse than previously expected. In a press release, Samsung said revenues would fall by 20.5% and profits would drop 59.8%.
The projected profit of $3.8 billion is below analysts’ consensus estimate of $5.2 billion, according to Thomson Reuters. And, Reuters notes, it appears Samsung is headed for its first annual earnings drop since 2011.
Samsung is getting pummeled in China by lower-cost smartphone rivals. In a statement emailed to reporters, Samsung said: “The company is preparing new smartphone lineups featuring new materials and innovative designs.”
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