Android is still growing worldwide, but it looks like the high-end is suffering from the move to cheaper devices and an influx of Indian and Chinese manufacturers.
Analyst Chetan Sharma projects a 50 percent drop in Android hardware profits in 2014, compared to 2013. Samsung’s lacklustre year has been a catalyst towards the drop in hardware profit, alongside new device makers like Xiaomi, Alcatel, Micromax and ZTE working on cheaper devices.
Image Credit: Android Authority
Sony and HTC have also been burned by the new influx of cheaper prices, although LG managed to have a successful year in the mobile industry, due to cheaper devices on the market.
Xiaomi is the topic of conversation, currently third in the mobile market, behind Apple and Samsung. The Chinese manufacturer went from zero market-share to over 8 percent in just one year.
China has shown continued mobile growth in 2014, adding 200 million more mobile users to the fold. Baidu reported 384 million Android users in China in Q3 2014, a huge surge in popularity over 280 million in 2013.
India has also been a huge proponent of Android growth, and companies like Micromax, Karbonn and Spice Mobile are starting to attract local-buyers.
The overall downgrade in profits over 2014 might be an issue for Google in the West, as it tries to maintain its current form against iOS in North America and Europe.
If HTC, Sony and Motorola do not see good sales numbers, they might be forced to move out of the market, allowing Chinese and Indian manufacturers to take over. Only Samsung has shown proficiency in keeping up with the price of Asian manufacturers.
It will also give Apple the clean sweep of the high-end market, especially since Microsoft does not seem keen on a high-end Lumia device. Apple has already shown the ability to knockout previous sales records, with the potential 70 million iPhone 6 and iPhone 6 Plus units in Q4 2014.
Source: Android Authority
