4. Samsung is a bigger threat than Apple wants to admit.
The battle between Apple and Samsung, the largest competitor to Apple for hardware, has been going on for years. The companies have been locked in patent lawsuits over software, though some have speculated that Apple's gripes should actually be with Google (GOOG), and less with Samsung.
"The Apple lawsuits against Samsung brought a lot of attention to Samsung products," Sica said in an interview. "If Apple is suing Samsung for copying their technology, then why would I, the consumer, spend $500 on the Apple product instead of the $100 on a Samsung phone?"
Apple's legal actions against Samsung have backfired by drawing attention to the fact that a virtually identical product to the iPhone can be bought for less money. Unless they are a die-hard Apple fan, consumers are considering this when browsing for smartphones.On earnings calls, CEO Cook has made reference to Samsung as being Apple's biggest competitor on the hardware side. "And of course, today, our tough competitor from a hardware point of view would be Samsung and married to Google on the operating system side," Cook said in April 2013, when discussing Apple's fiscal second-quarter results. See Also: How the iPhone Air Gives Apple a Boost
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