Another Stumble for Samsung

Leaked Galaxy Alpha

Leaked Galaxy Alpha

Buying marketshare with low prices and salesforce spiffs works only until cheaper competition comes along, and… whoops:

Samsung Electronics Co., the global leader in mobile-phone sales, is being outflanked in the key markets of China and India by newcomers catering to domestic tastes.

Xiaomi Corp. became the largest smartphone vendor in China during the second quarter, while Micromax Informatics Ltd. topped Indian mobile-phone shipments, according to data from research firms this week. In both cases, Samsung fell to No. 2.

Just a few weeks ago the “smart” take was that Xiaomi was a threat to Apple‘s ambitions in China. However, the Cupertino-based phonemaker just posted a 12.7% gain in iPhone sales last quarter, due in large part to what CEO Tim Cook called “honestly surprising” 48% growth in China.