Samsung bets on apple

Samsung gave last week in the second quarter earnings guidance that was much weaker than expected and is on track for its worst quarterly profit in two years, a performance by the company attributed in part to competition and price levels higher inventory in China.

Survey research firm Counterpoint 35 markets representing almost 90 percent of global sales found that sales of the eight-month-old iPhone 5s stood at 7,000,000 in May, compared with about 5 million dollars for the flagship Samsung Galaxy S5, which was just in its second full month of sales after a launch in late March.

Sales Galaxy S5 probably remained at around 5 million pieces in June, said Tom Kang, Seoul-based analyst for Counterpoint.

"They made ​​a mistake, a product that does not hold up to expectations and they are disbursing the price," he said in a phone meeting. "They will have to move on and leave behind what went wrong and focus on the next product."

The data suggest that Samsung problems are deeper than the mere accumulation of inventories devices medium-low until the company reported earlier this month after revealing weaker than expected second quarter guidance.

Samsung declined to comment on details or disclose counterpoint shipment figures for S5 Galaxy, but an executive at Samsung in April, said he hoped the new flagship device to outdo its predecessor.

"We will strengthen our product competitiveness, reinforcing our reputation for high quality brand, strong product line and progressive knowledge," the company said in a e-mailed statement Wednesday.

Data from research firm Canalys showed that the market share of Samsung in the first quarter of 2014 fell to 18 percent from 20 percent a year earlier, while the likes of China and Xiaomi Lenovo Group Ltd (0992.HK) made ​​gains.

Analysts said Samsung's new products, like the S5 did not offer enough to entice consumers to pay a premium over cheaper alternatives that were rapidly improving in quality.

"Most major brands of smartphones around the world are struggling against fatigue of the brand at the time," said Strategy Analytics analyst Neil Mawston. "Customers love their smartphones, but most of the hardware, software and applications now look, feel or cost the same."

Apple, however, is still able to charge higher prices. Your generation iPhone 6, which is expected to be released starting in September, is expected to sport larger screens invade what has been a key advantage of Samsung.

The data also suggest that Counterpoint smartphone sales Apple have remained resilient even in anticipation for the launch of new products is based. It is expected that the U.S. company to report its fiscal third quarter results later this month.

market downturn Some slowdown is expected to Samsung after a record year of profits in 2013. Strategy Analytics forecasts global growth of smartphone sales this year to reduce the rate to 21 percent from 41 percent in 2013, while also expected to faster growth of the cheapest smartphones to undermine the margins.

Worse than expected operating profit guidance Samsung 7.2 trillion won ($ 6.96 billion) for the April-June period came as a surprise to analysts. Survey Thomson Reuters I / B / E / S shows that 28 of the 50 analysts surveyed have cut profit forecasts for the full year for the company since the guide was published on 8 July.

A worker at a store carrier South Korea in central Seoul said sales of the iPhone and the Galaxy 5s S5 were roughly equal in their store, even though the Apple device has been on the market since October in South Korea.