“I am a large pessimist on Samsung (SSNLF) devices, and to be honest no investor should ever want to expose themselves to the risk of owning this company,” Alexander Cho writes for The Motley Fool. “Recently Reuters reported, ‘Analysts say sales momentum for the high-end version of the S4, which became its fastest selling smartphone since its launch in late April, has slowed. “Sales of high-end handsets are lagging behind expectations while low- to mid-end handsets are selling briskly worldwide,’ said Kim Young-chan, an analyst at Shinhan Investment Corp.”
“Samsung’s greatest weakness is that it doesn’t have that much control. It cannot dictate what goes on in the Android operating systems and how the application market is structured,” Cho writes. “The company cannot price itself any higher or lower than its competitors. Lower prices mean lower margins. Higher prices on phones would result in less demand.”
Cho writes, “Going forward it should be safe to assume that Apple will generate unit volume growth through 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.”
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