“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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Yet if Samsung sells a lot, it’s bad news for Apple because they can’t sell any. It’s hard being the king.
“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.
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.
After all, only the analysts have all the power to drive the company!. So unfair.
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.
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.
What’s that logical fallacy? Affirming the consequent? The No True Scotsman? Probably more….
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.
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.
You know, just like when Hyundai sales fall it’s a sure death knell for BMW.
Fscking idiots!
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.
Fortune is part of pump and dump.
Wait Samdung makes a high end smart phone since when?
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.
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.
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.
The Wall Street analysts are morons with a grudge.
Yes even it is neither Apple , but Apple has been punished and now need to punish more ?
Come on ! What the hell are these motherfuckers thinking ? Thinking their dad fucked their mum , and so can we ? Huh !!!
Analysts have always been unfair to Apple. There have only ever been two forms of defense against them: either blow-out earnings, or to make and release amazing new products.
Apple makes the best products ever, and their consumers are more than happy about them.
Also Apple will always be the best innovating company, and they make good money.
So all the WallStreet puppets might attract the attention with all the shit they say about Apple, but will NEVER win. They are just a bunch of liars who would sell their moms for 5 bucks…
Long life to Apple!
Actually it happens all the time. Auto sales is a market. Home sales is a market. Etc.. When auto sales are predicted to be high or low it includes/affects car manufacturers. All of them. There can be exceptions but generally speaking it affects all. The same goes for homebuilders,. When home sales are predicted to be high or low it includes/affects homebuilders. All of them. With rare exceptions. The slowing,due to saturation of smart phone sales, should affect smart phone manufacturers. How could it not? And that is the prediction, slowing of smart phone sales worldwide. So obviously it will affect the people who manufacture those phones. Samsung is a smart phone manufacturer. As is Apple, Motorola, HTC etc. So logically it should affect all manufacturers in that industry. Will some do better than others? Yes. But will sales slow for all? How can it not? Saturation of the market means just that, slowing sales. And these manufactures understand that. They are,after all, in business. That’s why they are trying to diversify into other products to offer to the consumer. Smartphones are becoming a commodity. Margins have to come down. Even for companies who have high margins. It’s merely a prediction based in reality. And facts. Anyone can see that smartphone sales will eventually saturate the market. It’s not a conspiracy.
The problem is Samsung put a premium price on a commodity product. Anyone who has handled a S4 can’t say it feels like a premium product, it feels like a cheap plastic piece of commodity hardware. Had the S4 been built more like the HTC One, people might have seen it as a premium product. Contrast that with Apple who is known for building premium products. You can love apple of hate it but they don’t make products that feel cheap.
What is so hard about Apple cutting back orders… THEY know that there is a pent up demand for the 5S or 6… Whatever they have in coming in the Fall… People are waiting and willing to skip the 5.
It may be a good time to buy option calls around their next earnings…
Bad news for Apple is taken as good for Goosung and bad for Goosung is also taken as bad for Apple it seems.