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! 😉

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

29 Comments

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

    Only to Apple Bear Bullshitters. Oops, they’re clueless. What a NOT surprise.

    Anyway, it’s nice to see that the [rectal] wind has changed in the world of analcysts. [<- An example of the term ‘back-handed compliment. See your study book for further usage.]

  2. “Apple’s decision to keep betting on the most profitable part of the smartphone market is paying off. ”

    *facepalm*
    Crazy plan huh? Serving customers that actually have money?

  3. Yeah, last years iPhone 5s sucked. No innovation… This years unannounced, iPhone 6 with features rumoured, but still unconfirmed by apple, yet no less or more convincing than dozens of rumours last year that did not come to pass, and the year before that, and the year before that, and the year before that… Still, the unannounced iPhone 6’s rumoured features and 4.7 and 5.5 inch screens prove Apple is innovating on all cylinders, which is why people buy iPhone 5s phones at a greater rat than any prior model, and the iPhone 5c, which all the ANALysts says sucks or something is outselling the competitors too, but not selling as large a share of expected by Apple, thus is a flop or something….

    Look, who actually bothered to read this linked article of pure nonsense anyhow? I read the MDN clips and realised it was stupid, so wasted the time I would reading it posting this stupid comment instead. I have no life.

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