I am a sizable pessimist on Samsung (NASDAQOTH: SSNLF) products, and to be straightforward no investor really should ever want to expose themselves towards the possibility of owning this firm. Not long ago Reuters reported,
Analysts say product sales momentum for your high-end model from the S4, which grew to become its quickest offering smartphone considering that its launch in late April, has slowed. "Sales of high-end handsets are lagging behind expectations when low- to mid-end handsets are selling briskly globally," explained Kim Young-chan, an analyst at Shinhan Investment Corp.
Disastrous consequencesThe trouble Samsung faced at first was looking to create an working technique that might garner mainstream appeal. At some time, Google (NASDAQ: GOOG) came along and helped out the ailing organization as well as the remaining handset makers by giving a unified platform that can immediately compete with all the Apple (NASDAQ: AAPL) iPhone.At first it went according to system, with Samsung focusing on creating selected components in the mobile phone although outsourcing the semiconductor elements of the mobile phone to other firms. Quickly the corporation came up with several of its very own styles, prior to opting to go with Intel Silvermont platform for tablets. This far more or much less proves that Samsung packages products, slaps on its brand, and forces the products by distribution. The enterprise doesn't do an entire good deal to add to the worth from the merchandise by inserting in new technologies that may be game changing.
Samsung's biggest weakness is the fact that it doesn't have that a lot management. It can not dictate what goes on from the Android working systems and the way the application marketplace is structured. The enterprise can't cost itself any larger or reduced than its competitors. Decrease rates suggest lower margins. Higher prices on phones would result in less demand. The organization could throw funds at R&D, but it's more practical to outsource antenna, battery, chip, and software designing to organizations like Google, Intel and Qualcomm.
Some could level out that the business has management over its assembly line, and also the speed by which it updates its product cycle. If each product is just an updated screen size with far more RAM, faster processor, and slight improvements by Android OS versions, what would serve the purpose of buying another Samsung telephone? The corporation doesn't even try to market place itself as a brand having aspirations, but rather takes an approach of being different from the people who stand in lines in front of a store.
Samsung is frowning upon one with the world's most successful retail strategies on planet earth with TV ads that are known for being a waste of marketing dollars. Apple is a great deal better at marketing than Samsung. Samsung tried to put on a smear marketing campaign in an attempt to win an audience that is trying to be different from the mainstream. But what if being mainstream is becoming the only stream by which the river is starting to flow. What then will Samsung do?
The statistics look grim
Source: Piper Jaffray
The data indicates that at least 68% of teenagers will most likely opt for a cellphone that's not going for being an Android mobile phone. Samsung is a part with the Android ecosystem, so losing far more than half of your teenager demographic indicates that the company's product strategy is starting to fail.
Google was successful at creating a strong product ecosystem of OEMs. The company's best weakness is the fact that has virtually no control over mobile merchandise outside of updating Android, and managing the Android Play Store, which generated $2.2 billion in revenue in the first quarter.
The organization are unable to move the direction of its ship in any sort of way that might rock it by a lot, putting the company inside the position of further optimizing the income cow and hoping that the handset makers come up with something big or unique to keep customers within the Android ecosystem. But this isn't likely to happen because every handset manufacturer gets to innovate at about the same rate as everyone else, with all the exception of Apple.
Avoid Android suppliers
Going forward it need to be safe to assume that Apple will generate unit volume growth via both increasing demand in general, paired with the stolen market share from HTC, Samsung, LG, BlackBerry, and Nokia. Therefore, investors would be sensible to invest into Apple.
Based on the survey data provided by Piper Jaffray, it would be reasonable to imagine Apple commanding far more than 50% with the market share within the United States. This is driven by the fact that the Apple brand generally carries additional appeal than Android. Consumers find Apple solutions easy to use, and upgrade.
Investors should really stay the course with Apple as it currently trades at a discount relative to the future growth potential and possibilities the company currently exhibits. Analysts are anticipating the company to grow earnings by 20.9% on average over the next five years. Future share buybacks really should cause scarcity inside the number of floating shares, which would increase the demand for Apple shares. Pair that with a 2.8% dividend for those who need income, along with a 10.5 earnings multiple for value, and we have the all-in-one package.
Conclusion
Investors have every reason to get panicking when it comes to investing into Android handset producers. Companies inside the Android ecosystem are becoming increasingly difficult to rely upon, and spontaneous innovation from Android is becoming increasingly unlikely. Investors who want exposure in mobile really should stick with Apple.
My web:dbuying
My twitter: https://twitter.com/dbuying1
My facebook: https://www.facebook.com/dbuying
Analysts say product sales momentum for your high-end model from the S4, which grew to become its quickest offering smartphone considering that its launch in late April, has slowed. "Sales of high-end handsets are lagging behind expectations when low- to mid-end handsets are selling briskly globally," explained Kim Young-chan, an analyst at Shinhan Investment Corp.
Disastrous consequencesThe trouble Samsung faced at first was looking to create an working technique that might garner mainstream appeal. At some time, Google (NASDAQ: GOOG) came along and helped out the ailing organization as well as the remaining handset makers by giving a unified platform that can immediately compete with all the Apple (NASDAQ: AAPL) iPhone.At first it went according to system, with Samsung focusing on creating selected components in the mobile phone although outsourcing the semiconductor elements of the mobile phone to other firms. Quickly the corporation came up with several of its very own styles, prior to opting to go with Intel Silvermont platform for tablets. This far more or much less proves that Samsung packages products, slaps on its brand, and forces the products by distribution. The enterprise doesn't do an entire good deal to add to the worth from the merchandise by inserting in new technologies that may be game changing.
Samsung's biggest weakness is the fact that it doesn't have that a lot management. It can not dictate what goes on from the Android working systems and the way the application marketplace is structured. The enterprise can't cost itself any larger or reduced than its competitors. Decrease rates suggest lower margins. Higher prices on phones would result in less demand. The organization could throw funds at R&D, but it's more practical to outsource antenna, battery, chip, and software designing to organizations like Google, Intel and Qualcomm.
Some could level out that the business has management over its assembly line, and also the speed by which it updates its product cycle. If each product is just an updated screen size with far more RAM, faster processor, and slight improvements by Android OS versions, what would serve the purpose of buying another Samsung telephone? The corporation doesn't even try to market place itself as a brand having aspirations, but rather takes an approach of being different from the people who stand in lines in front of a store.
Samsung is frowning upon one with the world's most successful retail strategies on planet earth with TV ads that are known for being a waste of marketing dollars. Apple is a great deal better at marketing than Samsung. Samsung tried to put on a smear marketing campaign in an attempt to win an audience that is trying to be different from the mainstream. But what if being mainstream is becoming the only stream by which the river is starting to flow. What then will Samsung do?
The statistics look grim
The data indicates that at least 68% of teenagers will most likely opt for a cellphone that's not going for being an Android mobile phone. Samsung is a part with the Android ecosystem, so losing far more than half of your teenager demographic indicates that the company's product strategy is starting to fail.
Google was successful at creating a strong product ecosystem of OEMs. The company's best weakness is the fact that has virtually no control over mobile merchandise outside of updating Android, and managing the Android Play Store, which generated $2.2 billion in revenue in the first quarter.
The organization are unable to move the direction of its ship in any sort of way that might rock it by a lot, putting the company inside the position of further optimizing the income cow and hoping that the handset makers come up with something big or unique to keep customers within the Android ecosystem. But this isn't likely to happen because every handset manufacturer gets to innovate at about the same rate as everyone else, with all the exception of Apple.
Avoid Android suppliers
Going forward it need to be safe to assume that Apple will generate unit volume growth via both increasing demand in general, paired with the stolen market share from HTC, Samsung, LG, BlackBerry, and Nokia. Therefore, investors would be sensible to invest into Apple.
Based on the survey data provided by Piper Jaffray, it would be reasonable to imagine Apple commanding far more than 50% with the market share within the United States. This is driven by the fact that the Apple brand generally carries additional appeal than Android. Consumers find Apple solutions easy to use, and upgrade.
Investors should really stay the course with Apple as it currently trades at a discount relative to the future growth potential and possibilities the company currently exhibits. Analysts are anticipating the company to grow earnings by 20.9% on average over the next five years. Future share buybacks really should cause scarcity inside the number of floating shares, which would increase the demand for Apple shares. Pair that with a 2.8% dividend for those who need income, along with a 10.5 earnings multiple for value, and we have the all-in-one package.
Conclusion
Investors have every reason to get panicking when it comes to investing into Android handset producers. Companies inside the Android ecosystem are becoming increasingly difficult to rely upon, and spontaneous innovation from Android is becoming increasingly unlikely. Investors who want exposure in mobile really should stick with Apple.
My web:dbuying
My twitter: https://twitter.com/dbuying1
My facebook: https://www.facebook.com/dbuying
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