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Apple And Samsung Grow Slower

posted 25 Jan 2013, 05:10 by Mpelembe   [ updated 25 Jan 2013, 05:11 ]


Reuters Business  Report - Today's daily digit: Thirty-six.

That's the percentage fall in Apple's share price from its apex in September, to the 12-month lows it scraped this week.

Compare that with a 10 percent gain for rival Samsung Electronics over the same period.

Apple might not be losing fans, but it is clearly losing investors and market share.

And while Samsung has been the main beneficiary, with steady gains for its handset division, it's not immune from the broader industry slowdown either.

The Korean giant did deliver earnings in line with expectations, but also forecast meager 'mid single-digit' growth for the overall mobile phone market.

Another sign of its conservative outlook: This year marks the first time Samsung won't boost its capital expenditures since the financial crisis.

That's in part because Apple is diversifying away from Samsung as a supplier of chips for its iPhone and iPad devices.

But the other issue for both players is that growth is now shifting away from developed countries like the US, to more budget-conscious emerging markets like China.

And that means, even if they can ramp up their sales, they may find their legendary margins squeezed more than ever.