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Samsung Galaxy S7 Is Doing What Apple Can No Longer Do

Apple has been working on a VR headset on its own. Source: Patently Apple.

It would benefit Apple to understand how Samsung was able to grow its unit shipments. Waterproof design and the microSD slot were included in both the Galaxy S4 and Galaxy S5 iterations. That leaves the virtual-reality bundling as the biggest variable.

If Samsung is able to triple high-end sales against the backdrop of a smartphone market that is only expecting to grow 7% on a year-on-year basis , it would behoove Apple, Samsung's biggest competitor, to find out how the South Korean electronics conglomerate accomplished this growth. If VR is that big of a game changer, Apple should look to add this functionality to its next-gen iPhone.

It's hard to grow once you're Apple

To be fair to Apple, it's slightly disingenuous to compare Samsung's first-month total of 9 million to Apple's iPhone sales figures. For a comparison, Apple sold 13 million of the iPhone 6s and iPhone 6s Plus units in the first three days of availability. Overall, Apple sold 74.8 million units in the seasonally heavy first fiscal quarter.

Unfortunately, this huge figure was flat on a year-on-year basis, and has fueled concerns that Apple is no longer able to grow its top line at the rapid clip investors have become accustomed to. The company will certainly not report shipping three times the number of smartphones it shipped last year anytime in the immediate future.

During the first-quarter conference call, Apple CEO Tim Cook predicted a year-on-year iPhone unit sales decrease in the second quarter. The company has been big on growing its market share by stealing market share from what Cook refers to as "Android Switchers."

Samsung's surprising sales growth may reverse that trend and present further risks to iPhone sales. Don't look for Apple to recreate Samsung's amazing growth when it reports later this month, but it does show there's still demand for high-quality devices.

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The article Samsung Galaxy S7 Is Doing What Apple Can No Longer Do originally appeared on Fool.com.

Jamal Carnette owns shares of Apple. The Motley Fool owns shares of and recommends Apple. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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