“With Apple’s stock up 25 percent since its multiyear lows in May, Jim Cramer has heard various rumors about why Apple has suddenly come roaring back,” Abigail Stevenson reports for CNBC. “There is one important piece of the puzzle that he thinks Wall Street has mostly ignored that explains the bounce.”
“Apple’s chief rival, Samsung, was caught in a debacle for its Galaxy Note 7 phones, after it was discovered that the batteries could overheat and cause the phone to explode. Samsung’s newest smartphone has now been recalled in the U.S., and the Federal Aviation Administration issued a warning as a potential safety hazard,” Stevenson reports. “‘This opens the door for Apple to take back a potentially enormous amount of market share,’ the host of CNBC’s ‘Mad Money’ said.”
“‘Considering the damage it has done to Samsung’s brand, I bet there could be a lot more upside here,’ Cramer said,” Stevenson reports. “In an effort to get ahead [of Apple’s iPhone 7 and 7 Plus launch], Samsung expedited the launch of the Galaxy Note 7 and shortened its release date by 10 days and added 10 new features, while dismissing concerns from suppliers that it could cause problems… Thus, because Samsung rushed to release its new product, it sacrificed safety for more speed, features and processing power, Cramer said… ‘I believe this is a game-changer,’ Cramer said.”
MacDailyNews Take: And once the great unwashed finally try a real iPhone, the phone which all others try and fail to emulate, it’s all over for Samsung. As with the Mac, once you go iPhone, you never go back.
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]
12 Comments
No big investors are going to be buying this laggard stock. It’s already had its rise for the year and it’s not going much higher than it is now. Meanwhile, the FANG stocks and other tech stocks will continue to climb. Tim Cook has dug Apple shareholders into a rut.
Even if every consumer who bought an exploding Galaxy Note, then returned it and decided to buy an iPhone there still wouldn’t be much of an iPhone boost. Wall Street believes Apple should sell as many smartphones as Samsung does despite the higher prices of iPhones. That’s just crazy. Apple will be looking at an iPhone shortfall of at least 10 million units.
Visited the Apple Store Sunday and crowd and flurry was greatest I’ve ever seen. Yes, anecdotal, but I don’t think it was a result of a tasty brunch next-door.
All you need to do is short Apple, and go long on the attractively valued Facebook, Amazon, Netflix and Google (Alphabet). It is easy when you are clairvoyant!!!!!!
Nothing will stop Apple from going up, except temporarily as Apple’s secretiveness about product development spooks generation after generation of would-be investors.
Amazon will do well, as there are no barriers to it becoming the retail shopping utility of the world, and its back end services are booming with high margins.
Google and Facebook, which are both ad businesses, I have no idea. Probably continues slower growth as I don’t see any other ad behemoths on the horizon.
Netflix, no idea. That’s a complex business as it tries going international after US saturation. But they have over come complex challenges over and over, so they will probably do fine.
So my advice for macnificentseven48 is to short all five business, go long on Samsung, and become a 6x (negative) billionaire!
Samsung is busy inventing a micro fire extinguisher that connects with Bluetooth to your Samsung phone, which will give off an early warning when the battery is about to explode. Problem they are grappling with is that the fire extinguisher weights about 5 times more than the phone,
Otterbox needs to create the Samsung Note Firebox.
Built like a tank, weighs like a tank, looks like a tank! Small 2-inch thick window lets you see your phone’s exploded / unexploded status anytime at a glance!
There is no question that the Samsung brand is being damaged, and it appears to be getting worse. Their battery issues are spreading to other Samsung models, and the Note 7 still has issues. These more recent problems are making news on ABC News, Yahoo News and Bloomberg News. The average consumer is going to see these stories in their daily feeds and think twice about purchasing a Samsung smartphone.
Additionally, I’ve read that some flight crews are now banning the use of ALL Samsung devices. These decrees will not only affect Samsung sales, but Android as a whole. Samsung was seen as the top Android smartphone maker, but now the consumer might think that all of Android has a problem: their top brand has equipment failures, recalls and bans, the rest of Android phones rarely get software updates, there is a high probability that the majority of Android devices have malware, etc.
How many additional sales will Apple see from this Samsung debacle? Previously, around 30 percent of iPhone sales were from Android switchers. This equaled about 60+ million units. If Apple took an additional 5 percent of all Android sales, including from Samsung then they would be winning an extra 60+ million units.
U.S. stocks soared Friday after a much better-than-expected employment report for November from the Labor Department which saw the economy create 266,000 new jobs…
In 1965, Gordon Moore, the founder of Intel, predicted that the number of components that could fit on a microchip would double every year for the next decade…
No big investors are going to be buying this laggard stock. It’s already had its rise for the year and it’s not going much higher than it is now. Meanwhile, the FANG stocks and other tech stocks will continue to climb. Tim Cook has dug Apple shareholders into a rut.
Even if every consumer who bought an exploding Galaxy Note, then returned it and decided to buy an iPhone there still wouldn’t be much of an iPhone boost. Wall Street believes Apple should sell as many smartphones as Samsung does despite the higher prices of iPhones. That’s just crazy. Apple will be looking at an iPhone shortfall of at least 10 million units.
On what planet do you live? What you just wrote makes absolutely no sense!
Visited the Apple Store Sunday and crowd and flurry was greatest I’ve ever seen. Yes, anecdotal, but I don’t think it was a result of a tasty brunch next-door.
Not investors, you mess speculators!! And speculators are only there for the moment. Buy low. And sell the moment it goes up
Just saying. 😎
Just think, you will be billionaire!!!
All you need to do is short Apple, and go long on the attractively valued Facebook, Amazon, Netflix and Google (Alphabet). It is easy when you are clairvoyant!!!!!!
Nothing will stop Apple from going up, except temporarily as Apple’s secretiveness about product development spooks generation after generation of would-be investors.
Amazon will do well, as there are no barriers to it becoming the retail shopping utility of the world, and its back end services are booming with high margins.
Google and Facebook, which are both ad businesses, I have no idea. Probably continues slower growth as I don’t see any other ad behemoths on the horizon.
Netflix, no idea. That’s a complex business as it tries going international after US saturation. But they have over come complex challenges over and over, so they will probably do fine.
So my advice for macnificentseven48 is to short all five business, go long on Samsung, and become a 6x (negative) billionaire!
Samsung is busy inventing a micro fire extinguisher that connects with Bluetooth to your Samsung phone, which will give off an early warning when the battery is about to explode. Problem they are grappling with is that the fire extinguisher weights about 5 times more than the phone,
Yes, they are struggling with it, since Apple has yet to release one, and they have nobody else to copy it from.
Otterbox needs to create the Samsung Note Firebox.
Built like a tank, weighs like a tank, looks like a tank! Small 2-inch thick window lets you see your phone’s exploded / unexploded status anytime at a glance!
So was that mushroom cloud produced by a Samsung battery?
That’s a vile exaggeration. A cloud that large that would take at least three Samsung Notes.
There is no question that the Samsung brand is being damaged, and it appears to be getting worse. Their battery issues are spreading to other Samsung models, and the Note 7 still has issues. These more recent problems are making news on ABC News, Yahoo News and Bloomberg News. The average consumer is going to see these stories in their daily feeds and think twice about purchasing a Samsung smartphone.
Additionally, I’ve read that some flight crews are now banning the use of ALL Samsung devices. These decrees will not only affect Samsung sales, but Android as a whole. Samsung was seen as the top Android smartphone maker, but now the consumer might think that all of Android has a problem: their top brand has equipment failures, recalls and bans, the rest of Android phones rarely get software updates, there is a high probability that the majority of Android devices have malware, etc.
How many additional sales will Apple see from this Samsung debacle? Previously, around 30 percent of iPhone sales were from Android switchers. This equaled about 60+ million units. If Apple took an additional 5 percent of all Android sales, including from Samsung then they would be winning an extra 60+ million units.