Daring Fireball’s Gruber on ‘ceding the crown’

“So Phil Schiller gave a second eve-of-Galaxy-S4-launch interview, this one to Reuters reporter Poornima Gupta,” John Gruber writes for Daring Fireball. “The headline (‘Apple’s Schiller Blasts Android, Samsung on Galaxy’s Eve’) is spot-on, but here’s the second paragraph: ‘The marketing chief’s rare attack on a rival, on the eve of the Galaxy S4’s global premier in New York, underscores the extent of the pressure piled upon a company that once stood the undisputed leader of the smartphone arena, but ceded its crown to Samsung in 2012.'”

“According to Canaccord Genuity analyst T. Michael Walkley, last year Apple took 69 percent of the handset industry’s profits; Samsung took 34. For just the last quarter, the numbers were 72 percent for Apple, 29 for Samsung. You will note that both the annual and quarterly numbers total more than 100 percent; that is because all other handset makers, combined, are losing money. This is rather astounding — Apple and Samsung have together destroyed the rest of the mobile handset industry.”

Apple “ceded its crown to Samsung in 2012.”

Gruber writes, “That’s a statement of fact, in a Reuters news (not opinion) story, about a company with 70 percent (and judging by last quarter, growing) of the industry’s profits… The desire for the ‘Oh, how the mighty Apple has fallen’ narrative is so strong that the narrative is simply being stated as fact, evidence to the contrary be damned. It’s reported as true simply because they want it to be true.”

Read more in the full article – very highly recommendedhere.

MacDailyNews Take: As we wrote back in mid-January:

“Journalism is dead – at Reuters, at the very least… If you’ve read Reuters for the last few months, you’ll have noticed a pervasive anti-Apple/pro-Samsung theme in many of their Apple-rleated articles… We’re left with only one question: When did Samsung buy Reuters?


    1. Actually it is not just Samsung. It is all news. It seems like most of it is propaganda. The people covering the the stock market have an agenda. Most people are fooled into believing that this is actually news or something.

      Wall street is working hard to drive Apple’s stock down because clearly it is worth way more and as soon as the “bad news” ends it is guaranteed to jump back up to it’s full and fair price. It’s really a great strategy and one where there is no way they can lose. Apple WILL go back up!

      These so called analysts are taking advantage of the gap between Apple product announcements to scare people into believing that Tim Cook is no Steve Jobs. They are doing a good job of it too and are successfully manipulating the stock price down causing people to spook and unload their stock below fair market value. It’s easy to spook people, especially if you are heading into retirement within 5 years. Those are the easiest to spook and they tend to have the largest portfolios. There whole life’s savings!

      Soon the pounding will stop and Apple will jump back to it’s fair market price, but not before swindling thousands of people out of their money and causing them to hand over their retirement money to them. It’s a great strategy and GUARANTEED to work. I mean face it, is Apple really headed falling down like Microsoft? Gimme a break!

      As soon as they stop pounding it, the stock price will go back up.

      They are very clever. They have a few “random” analysts pound Apple in a few popular news outlets at different times and you get the job done. it doesn’t take too many phonies to pull it one off. All you need is 5 or 6 cronies to pull it off and whamo, you accomplished your mass swindling of our money.

      What’s even better is that the Analyst can never be blamed because he’s the one that’s always right!

      “I told you it would go down, and it did”. “I told you it would go back up, you should have listened”.

      It is easy to see who the biggest swindlers are. Just look for the Analysts who are “most” right and you found the culprits.

      Face it, NOTHING predicts the future, so if somebody is defying the odds, then mathematically, they must be MAKING the odds. There is no other way.

      I’ve worked in this industry long enough. They can’t fool me. It’s all a game and like War Games, the only way to win is to not play at all.

      1. There is a lot of great stuff in your post but there is something missing as well and that is education. People who are long time investors and don’t know about the volatility of the stock may indeed fall prey to the analysts. When I bought Apple stock everyone thought I was nuts, that just confirmed to me that I was making the right choice. Years later the same people are shaking their heads when I tell them that Apple’s been the best performing stock on the planet over the years. It’s a short term monster that’s for sure, but that does not bother me.

        It’s more than just a game, it’s all games, and like peace games the best way to win is…oh well I’ll keep that a secret, don’t want to scare the war mongers too much.

        I’ll give you a hint though, it’s from Robert Heinlein: “Certainly the game is rigged. Don’t let that stop you; if you don’t bet you can’t win.”

        1. Interesting point of view and maybe there is some truth to it, but when you’ve worked on Wall Street for years as a programmer you see too much “evil” to ever play again. I’m not saying you can’t win, many people do, but it is very hard to play the game when you really see and know the team of liars you are playing against. We all have our thresholds but this industry is more than I can handle.

          Just remember, every time you win, or lose, some broker/trader ALWAYS wins, and you help reinforce their power. That is why I refuse to play the game. I don’t want to empower an already corrupt industry.

    1. It’s also been said “the truth hurts.” And the truth of the matter is Samsung outsells the ifoney by a large margin worldwide. More units sold is what counts, not who over charges for outdated hardware and OS.

      1. I think you’ve got that wrong. Samscum doesn’t sell more units. They might give away more units, we don’t really know. They don’t publish any numbers.

        1. Actually, it was revealed in the court case that Apple offered to license iOS to Samsung because they had a special relationship. (I think it was called “key supplier” or “strategic supplier”.

          1. It’s not clear that any licenses between Apple and Samsung were for iOS. It’s more likely that Samsung would continue to use Android and Samsung would pay Apple a very high license rate to continue imitating iPhone.

            No software licenses appear in the following article about Apple’s proposed licensing of patents to Samsung:

    2. “Hasn’t the motto of journalism for a long time been, “never let the truth get in the way of a good story?””

      Only at Faux Newz and other Murdoch- NewzCrap companies.

  1. “They’re declaring “The King is dead; long live the King” not because the king has actually died or abdicated the throne, but because they’re bored with the king and want to write a new coronation story”


  2. Wow, this site needs to change its name to crackdailynews because that’s what everybody here is smoking. You don’t judge market share of a phone or who holds the crown by how big profits are. All that indicates is that like everything Crapple makes, it’s overpriced and its blind fanboys pay an outrageous Crapple tax.

    Market share is measured by how many units are sold and 85% of the phones sold in the world are Android phones. Not to mention one brand, Samsung outsells the iPhoney.

    1. Umm, you’re not baiting us, are you? Are you out of your fsking mind? Blind Fanboys? Are you friggin’ serious? How dark is it really inside your sphincter? Get a life.

    2. Tell yourself to never go into business ok? You can give away as many widgets as you want and corner market share but if you’re not making money, it’s back to your mom’s basement where you’re currently posting from. Get your thumb out of your mouth, your head out of your ass, and your ass back to school

    3. Wow your a broken record lol you just keep repeating yourself thinking anyone who reads this sight on a daily basis gives a crap what you say. Be a good little kid and play with yourself in the corner.

  3. It is highly doubtful if Samsung has surpassed Apple in smartphone sales, no matter what the pundits say.

    Apple is very transparent with its audited quarterly reports that provide the number of iPhones sold for that period.

    Samsung, on other hand, prefers to hide behind a curtain of obfuscation by not revealing the numbers and lets market research firms publish the data, probably paid for by Samsung to inflate the numbers. This way there are no legal implications that can potentially blow back to Samsung if the numbers are wildly inaccurate or even falsified.

    If only people better understood the shady underhanded way Samsung goes about its business they would be less willing to sing its praises. But a $12 billion marketing budget goes a long way towards placing paid advertisements on Reuters and other so-called independent papers.

  4. Apple isn’t going to close the doors anytime soon. And Samsung wouldn’t be selling all the phones they are had Apple been more observant. Apple stuck with AT&T as their sole provider in the beginning of the iPhone which allowed Android to gain a foothold. Then Apple failed to realize that the market wants a larger phone. Clearly this was also a huge mistake. Had Apple not made these two mistakes, fanboys wouldn’t be talking about Samsung all the time. But Apple should be able to take back some of that market share from Samsung. Give it a little over a year and things will be much better. The smaller iPhone is coming soon and the larger iPhone hopefully early next year. Then there’s China! Those will be the game changers. Not to mention what Apple may have in the pipeline that we are not aware of? I think there will be something before the end of the year.

  5. MDN: attacking Reuters because they report what you don’t want to hear is akin to ‘slob’ chastising you for writing what he/she/it doesn’t want to hear. Both positions are untenable and in extremely poor taste. Improve your own journalistic integrity before attacking another.

    1. The problem, anonymous Mike, is that Reuters reports things that, to be kind, do not have a one-to-one correspondence to reality, and reports them as unassailable fact rather than opinion. Declaring that Apple has “ceded its crown” to Samsung on the basis of at-best secondhand number of units shipped (not sales) is questionable in two ways: first, the numbers are not from Samsung but from third parties; second, if I sell 200 units and make 10c each, but my competitor sells 20 units and makes $10 each, who is more likely to be around next year – in other words, who is the real leader in that business? (Hint: $200 is better than $20.)

      1. So you point out:

        1) what all for-profit media companies do, including MDN

        2) the fallacy of playing the short game. iPhone profits are wonderful now, yes. but a few years from now, Apple’s eroded market share will hurt it. badly. Analysts are killing Apple stock right now because Apple is playing the cell phone market exactly like they did the PC market — which as we all know yielded a ~5% market share and near-death of the company.

        I simply disagree that current profits are indication of long-term success. …and shareholders agree with me, obviously.

        1. Shareholders don’t agree with anything, they just buy or sell. When some dumb analyst pounds the stock people sell, and people like believe that there is some meaning to the price of Apple stock. If we were selling stock in trinkets the price would go up and down and you would “extract” meaning out of it. You would say, obviously trinkets are “less good” in 2013 then they were in 2012. And when the price goes up next year, you would conclude that these same trinkets just got better.

          I won $175 dollars at the slot machines the other day. Obviously I’m a better player than my wife who lost money. Surely you have to agree?

  6. Good idea to run with those numbers prior to China Mobile with 2/3rds of China’s cellular market and those India numbers start getting counted. As long as the iPhone isn’t in those markets, you can play with those numbers to make Samsung look like the big dog on the block.

  7. this is really weird because I just don’t know ANYONE who owns a samsung… a few moto’s, yes, but really all iPhones – the US is always ahead of globals trends in smartphones, so why does it not follow that the impact of the iPhone 5 will be felt globally 6 months behind the United States?

  8. John gruber is a retard fanboi suckling on Apples teet like a crackhead with a dirty stem. People getting emotionally invested in overpriced and overrated smartphones is getting old.

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