The fact that Samsung has certain problems when it comes to its products is not something shocking. Last month it has been revealed that Samsung had experienced a drop in profits of no less than 25 percent. The most obvious reason to that was the increased competition in China and Europe on the smartphone market.
However, it seems that there might be more than that. Apple has decided to drop the deal it has with Samsung. So, apart from making smartphones or other advanced devices, Samsung also provided some parts for the products released by Apple. Samsung actually created the microprocessors for iPhones and iPads. Still, this is no longer the case.
So, Apple has dropped this collaboration to work with Taiwan Semiconductor Manufacturing. Of course, this is bad news for Samsung and its sale results. “Sales and profitability from System LSI (logic chip business) worsened as demand from main customers continued to decline,” a statement from Samsung said. However, this is not the only problem for the famous smartphone maker.
It seems that demand for the most popular Samsung products has actually decreased. The increased competition on this market is the one to blame for this situation. As more cheap devices are available on the market, offering a rather good usage, Samsung’s products have to suffer.
Samsung has a good option at the moment. The famous manufacturer can actually focus more on improving usability, as this actually may help them provide advanced technology to a certain category of users. However, Samsung may also work at a cost reduction plan, to make its products easily available to more people.
Still, maybe the deal between Samsung and Apple is not over forever. Reuters reported that Apple may actually turn to the use of Samsung’s services for the production of its 2015 A-series chips. These are going to be the chips used on iPhone 7 and 2015 iPads. Until then, the loss of the chip business with Apple will actually make Samsung lose more than $1 billion. It is yet to see how this will impact Samsung in the future.