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Alarm bells should be ringing for the smartphone industry

02
Jan
2014

Samsung’s share price dipped another 5% on Thursday, dropping back to August levels. Markets have started expecting Samsung’s profitability to decline from the autumn quarter to the Christmas quarter. Analysts also fear that Samsung’s handset sales are shifting from high-end, high margin models to low-end models more quickly than expected. Possibly not coincidentally, the hot Chinese phone vendor Xiaomi just reported its phone sales exploded to 18.7 million units in 2013. That’s up 160% from a year earlier. Several Asian phone vendors are ramping up low-end smartphone production, attacking Asian markets vigorously and fanning out to Eastern European and African markets. At the same time, mobile app download volume growth in the Christmas of 2013 was surprisingly weak, indicating that the

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