Apple wary of competition from Samsung and Google
CA Cupertino, United States (4E) – Apple’s profit has been its slowest in ten years. The reason for Apple’s struggle is rising competition in the smartphone and tablet market and consumers purchasing cheaper alternatives. During the company’s conference call, Apple reported that its profit grew by only one percent in the period ending December 29. Sales were expected to reach $54.9 billion but instead the figures resulted in $54.5 million.
In an effort to compete against Samsung’s cheaper line of smartphones and tablets, Apple has had to search for cheaper part alternatives. However, Apple did post record numbers in iPad and iPhone sales.
“People are concerned about how quickly sales are falling off after the initial product launches and whether the company can deliver new and interesting products to reignite growth,” said co-head of research at BTIG LLC Walter Piecyk, according to Bloomberg News.
Apple remains optimistic of its sales in the second quarter of this year. The Cupertino-based company projects sales of $41 billion to $43 billion. Bloomberg analysts predict sales of $45.5 billion.
Google’s Android OS on a variety of smartphones have cut into Apple’s iPhone sales. Apple is countering that by selling older iPhone models.
“Cook said Apple still offers consumers that option by continuing to sell older models at reduced prices. The iPhone 4 was selling out throughout the quarter. IPhone sales more than doubled in China, where Apple opened 4 stores during the quarter,” Bloomberg News added.