Samsung Electronics has been facing a tough time with falling profits because the low end of smartphone market is occupied by the Chinese manufacturers while Apple dominates the top end of the line-up.
They posted an operating profit this year which is at least 30 percent lower than what they earned during the same time in 2014. However, the company is not losing the battle yet because the newly launched Galaxy S6 phones have received rave reviews from both critics and consumers alike.
In a user survey conducted, it was revealed that people had more trust on the Samsung brand while Apple took the second place which confirms the fact that they are here to stay. Besides, a phenomenal growth has been witnessed in the demand for their microchips.
While analysts expected profits much lesser, Samsung exceeded their expectations by posting a profit of $5.4 billion in the first quarter. They posted 8.5 trillion won last year but this year it has considerably reduced and is now at 5.9 trillion won, The New York Times Reported.
Peter Yu, an analyst from PNB Paribas said, "Samsung had really dull years because they lacked the style that consumers were looking for. The newly launched Galaxy S6 edge with a curved screen seems to have finally put them back on track."
He also added that Chinese smartphones have caught up in terms of design and quality which makes it difficult for customers to see the difference. Galaxy S6 is a promising launch from the company which might finally turn their profit upwards before the end of 2015.
Even though, Samsung and Apple is ahead of the competition for now, Xiaomi is fast catching up and Lenovo's acquisition of Motorola makes them stronger than ever.
According to a CNET report, Samsung has been losing majority of its market share to Apple. The company's smartphone market share which was 29 percent in 2013 dipped to 19 percent in the final quarter of 2014.