Analyst: Wall Street putting hurt on Apple over weak Samsung Galaxy sales

“You would think that bad news for Samsung’s smartphones would be good news for Apple,” Philip Elmer-DeWitt reports for Fortune. “But that’s not how Wall Street sees it, according to Bernstein’s Toni Sacconaghi.”

P.E.D. reports, “According to Sacconaghi, the Street is thinking that if Samsung can’t sell as many high-end smartphones as expected, then neither can Apple.”

Read more in the full article here.

MacDailyNews Take: Genius.

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]

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25 Comments

    1. “Many analysts, including Sacconaghi, believe that if Samsung can’t sell its expected number of high-end phones, neither will Apple.”

      Let’s see, selling high end phones to people who can’t afford high end phones as a business model? After all, Samsung’s main attraction is “FREE” everything, and their customers tend to be those people who appreciate free stuff, so how does it follow that they can sell a high end phone to those same people?

      It’s the age old problem for analysts. They can’t make a living being an expert on just a few stocks, and they can’t write intelligently about one of 2000 stocks they try to follow. Hence they lump Apple iPhone customers in with Walmart/Samsung customers and say that if Samsung can’t sell $600 Galaxy S4 phones to Walmart shoppers, then Apple can’t sell $600 iPhones to Tiffany shoppers.

  1. Analysts have been gone so far!. They hammered Apple to the bones. They even wanted Apple treat its employees like GOD which is so ridiculous. At this moment Apple needs faithful, good employees to help bring the company around, not to turn their back on Apple, in return Apple’s employees would get more incentive.

  2. Apple is the Street’s favorite stock for short term gains. They can pump it up to 450 and then spread a few rumors to bring it back down again. Easy way to make 10% profit.
    In the meantime they are getting people to pour money into amazon and netflix with the promise of big profits in the future. What the investors don’t realize is that the minute those profits appear (if they ever do) the stocks will tank.

  3. I think it all comes down to two things:
    1) Wall Street has never liked Apple and if an opportunity arises that they can take down Apple stock, they will gladly do it. Remember that Steve Jobs had an obvious and visible disdain for Wall Street and how they treated his company.
    2) Wall Street analysts are the most inept bunch of so called “college graduates” that call themselves professionals. These are the same individuals when placed next to anyone who has not majored in finance and are told to predict where a stock’s price is heading, that individual (over 50%) of the time, makes a better educated guess than these (put whatever word you want to insert here) are capable of. Working at Wall Street is a game and in my opinion, I think it would be best for Apple to delist itself so that Apple can do what Apple does best; that is to create the most awesome and innovative products for us all to utilize and enjoy.

  4. It’s true that the high end market is becoming increasingly saturated, but that should be viewed as good news for Apple. The future battles of the high end market will be won by those who can best retain their current customer base while siphoning users from the competition. No company is in a better position to wage that war than Apple. So this is clearly nothing more than a convenient excuse to short the stock.

  5. He like all the others know nothing about what they are talking about. What will it be tomorrow? Apple would rank higher if they changed their name to…… or,…… Lets get a life outside of stupidity.

  6. Wall Street can’t comprehend the thought that maybe, just maybe, most people don’t want a huge, plastic phone running an OS for which 99% of malware is written. That maybe Samsung put more into it’s advertising budget than it product development.

  7. In other words, it doesn’t matter what Apple does, Wall street has made up its mind to drop Apple’s stock price no matter what happens. Apple could have record sales of every product and Wall Street will come up with another lame, stupid excuse to drive Apple’s stock price down. I thought there were laws against this behavior.

  8. Wait them out. In the long run, earnings and cash flow growth trump the BS. I won’t worry. And you should not either. Wait until Apple launches entire new product categories and the process begins anew. It won’t happen tomorrow, but in a year or two, all the games Wall $treet plays will be meaningless.

    Successful investing involves time, patience and the ability to tune out analyst BS. They might own the watches. But you have the time.

  9. Your economy is becoming scarily self destructive, bit like ours developed in the 60s. Doesn’t bode well for the future. The Chinese must be in hysterics seeing one of their few competitors being savaged by its (supposedly) own side.

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