Apple calls Samsung’s bluff

“What a difference a year has made in the smartphone business,” Richard Waters writes for The Financial Times. “Twelve months ago, Samsung was riding high… Apple, by contrast, was facing a tough reassessment from Wall Street as its growth slowed and gross margins slipped.”

“With the subsequent launch of the iPhone 5s and 5c, it felt like smartphone innovation had come to an end,” Waters writes. “Apart from a design makeover for the software, the annual product rethink was distinguished mainly by the 5c, a case of old hardware dressed up in new plastic.”

MacDailyNews Take: you know, because the world’s first 64-bit smartphone and Touch ID, neither of which Samsung (or any other iPhone knockoff assembler) has matched, is meaningless.

“Things look very different today. A new phase in the smartphone wars is unfolding, and Apple once again has the chance to define the terms of engagement,” Waters writes. “Apple’s decision to keep betting on the most profitable part of the smartphone market is paying off. Its share of total smartphone profits had already bounced back to 65 per cent in the first quarter of 2014.”

Apple Inc. “shares have soared 60 per cent over the past year as profit margins have stabilised and Wall Street has warmed to the new willingness to distribute excess cash flow to shareholders,” Waters writes. “This has added $230bn to its stock market value – considerably more than the entire market value of Samsung, whose shares have languished over the same period.”

Full article (subscription required) here.

MacDailyNews Take: Bu, bu, but… market share! 😉

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What we mean by ‘Hee Haw demographic’ – November 13, 2013

29 Comments

  1. “Twelve months ago, Samsung was riding high… “. Samsung was never riding high. Samsung merely created the illusion of riding high and these run-of-the-mill analysts fell for it. Most tech writers and wall street analysts simply do not have the intuition or the intelligence to understand that Apple’s MO is to innovate at the -to quote Steve Jobs – “The intersection of technology and liberal arts”

    1. What’s most frustrating is how they still won’t admit they were wrong. Their argument is that things are different now.

      No, you morons. Nothing has changed. Nothing is different. Apple was always wiping the floor with Samsung. It’s just that Samsung is finally losing the ability to fool you clueless idiots into thinking they’re winning.

      ——RM

    1. I doubt Apple will ever collect a dime from Samsung. It’s much cheaper to dream up new appeals to keep the litigation going. Furthermore, when they run out of appeals ideas, how is the court ever going to force them to pay up? The only thing that would get their attention would be an embargo on all Samsung products in the U.S., and the courts would never go that far.

      So, the case is basically just a very expensive PR campaign to expose their business practices.

  2. “With the subsequent launch of the iPhone 5s and 5c, it felt like smartphone innovation had come to an end”

    Only to idiots who want new candy every five minutes — but then don’t even understand it when they see it.

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