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Samsung suffers at the hands of Chinese upstarts

Samsung Electronics' dominant position is under threat. The company recently reported its first drop in profit and revenue in nine years. Behind the decline are Taiwanese manufacturers, who have made things easy for upstart smartphone companies. Google's Android OS and Taiwan-centric supply chains are commoditizing smartphones. Producers may be headed into the same commoditized quagmire that has hit the TV and PC industries.

Taiwanese chips installed in Xiaomi's Hongmi smartphone

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