Apple vs. Samsung: Galaxy Note 3 Maker Announces Sales Dip In Fourth Quarter, Is the iPhone 5S To Blame?

Sales for Samsung's Galaxy lineup of smartphones have taken a bit of a dip in the fourth quarter as the world's leading smartphone maker due in large part to the lack of a new flagship smartphone variant since 2013's Galaxy S4.

Samsung has been locked in a bitter battle for smartphone dominance against Apple, having spent most of 2013 zooming past most every other device on the market, including the iPhone. However, Apple has shown in the same fourth quarter that it's down but not out in this fierce competition.

According to InformationWeek, sales of the Samsung Galaxy Note 3 began this quarter and, while it cannot be considered anything less than a hit with the company selling more than 10 million units, it has not been enough to boost the company's financial performance. Samsung posted its first drop in profits in two years.

Samsung reported a profit of $7.73 billion on sales of $54.95 billion for the October to December period. Revenue was at a record high, but profits dropped 18 percent compared to the July to September period. While the news is bleak, Samsung seems to be spinning the low numbers by citing one-off balance sheet items as the cause for its dip in profits. The company's finances took a hit from employee bonuses and currency exchanges as well.

So far, all that is known is that Samsung said its sales of smartphones dipped slightly in the fourth quarter. However, it no longer discloses hard sales figures for its devices, so it didn't give any clues as to how many it sold. Analysts reportedly estimate that the sales are between 85 and 87 million. Sales of the Samsung tablets doubled compared to the year-ago period thanks to the latest additions to the lineup.

While Samsung notes that the sales dip is only a slight, many are alarmed that a dip in sales took place at all since the fourth quarter is generally a profitable one given the holiday sales season. One possible reason is that Samsung's smartphone sales lagged due to the release of the new iPhone 5S. Although the 5S was not a significant upgrade from the iPhone 5, it sold rather well for Apple, which could have taken a chunk of holiday business away from Samsung, which couldn't boast more in terms of smartphones than the Galaxy Note 3. The Note 3 is a good phone but, being a phablet, it is a highly specialized device that is not an ideal gift for everyone. Meanwhile. The iPhone 5S is a bit more of a universal gift.

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