Analysts have been wondering if Apple would be able to hold up against the fierce Asian competitors on the global smartphone market after the company published its second-quarter results.
Apple’s second-quarter results
Reports have shown that the share of Apple Inc. of the global smartphone market has fallen to its lowest level in the past three years.
As last week traders focused on US companies reporting second-quarter results, Apple sales showed a decline. This happens as more consumers buy cheaper Chinese smartphones or stick to other Asian brands, wanting to get a pie of Apple’s share.
Apple currently holds some 13.5 percent of the global smartphone market, which is down by about 3 percent on an annual basis, according to analysts.
Chinese makers provide fierce competition
Chinese makers Huawei Technologies Co and ZTE Corporation have been working hard to step more firmly on the profitable smartphone marked, which is doomed to grow in the future. Apple’s 20 percent rise during the quarter is incomparable to the industry expansion during the same period, reaching 47 percent. The key to the growing success of Asian manufacturers are low prices combined with top-quality services.
Analysts point out that Apple has been losing market share to LG Electronics Inc.
Samsung is Apple’s current biggest rival on the smartphone market. The South Korean company has 33-percent market share.