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After digesting Samsung's Q4, IDC thinks the company sold 63.7M smartphones in Q4, +76% Y/Y and...
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Friday, January 25, 4:58 PM ETAfter digesting Samsung's Q4, IDC thinks the company sold 63.7M smartphones in Q4, +76% Y/Y and good for a 29% share (+650 bps). Apple's 47.8M iPhone sales (+29%) yielded a 21.8% share (-120 bps). Low-end Android juggernaut Huawei became the world's #3 vendor with a 4.9% share (+140 bps). #4 Sony's share rose 60 bps to 4.5%. Nokia and RIM didn't make the top-5. Total smartphone growth is pegged at 36.4% (down from Q3's 45.3%), but total mobile phone growth at just 1.9%. Smartphones made up 45.5% of phone sales. (Strategy Analytics)
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This news story has 59 comments:
So just as quickly as Apple is toast according to the universal single opinion of things, it could become an underdog or King again.
Did you notice that Netflix made a whopping $700k in profit this quarter? .. Up 40% the day they reported and another 15% the next day. ...
Samsung's largest business—cellphones and telecom equipment—accounted for 62% of its operating profit in the fourth quarter. Analysts have forecast overall shipments of cellphones at 110 million and smartphones at 60 million in the fourth quarter. Apple said it sold 47.8 million iPhones in the same period. Samsung doesn't release details on the number of phones it sells in its earnings reports.
Samsung's profit margin for cellphones fell to 17.4% in the fourth quarter, down from the 18.8% marked in the previous quarter. And the pace of cellphone revenue growth continued to slide, as it has through the year. In the latest quarter, cellphone year-on-year revenue growth was 58%, down from 82% in the third quarter. "
http://on.wsj.com/10UaK0o
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62% of $6.6B = ~$4B [cellphones and telecom equipment]
Margins: 17.4% on cellphones
Can you imagine what would happen to AAPL if they reported 17% margins?
Apple reportes three times the profit of Samsung's cellphone telecom equipment business and 38.4% margins and Apple gets hammered.
It is estimated Apple make 60-55% of the all the profits made in smartphone sales worldwide.
If Apple release a lower cost smartphone it is clear Samsung will face some serious headwinds as Samsung relies on price to sell their products. Survey after survey has shown consumers want an iPhone with the only barrier being price. After all $800 for a phone is not cheap.
Apple make roughly 3 times more actual profit on phones, than Samsung do on their phones even though Samsung sell more actual units.
It is estimated Apple make 60-65% of the all the profits made in smartphone sales worldwide.
If Apple release a lower cost smartphone it is clear Samsung will face some serious headwinds as Samsung relies on price to sell their products. Survey after survey has shown consumers want an iPhone with the only barrier being price. After all $800 for a phone is not cheap.
Now I have sellers remorse ..but I'm widowed and this is my retirement...so when I had 3 mil now 1.3 or so...opinions?
I feel your pain & like you have a lot of apple shares. No one can say how long it will take to restore & no one can know what unforeseen problem might occur that could suddenly cause another drop. You shouldn't look back with remorse, but rather ask what you can learn from this that will help you be a better trader. At some point apple has to become a value & people will start driving it back up. I do think apple is easily worth 550-610, and maybe after a floor is established you can buy back in & maintain some good stop losses to protect your gains. Any company that brings in 54 billion in 3 months & is profiting at 1 billion a week is a company worth owning. So I think you did the right thing, but hopefully this crisis will be turned into an opportunity if you can buy back in at 400 or less.
Bottom line, consider yourself lucky, you got and have very nice retirement nest egg, do not risk it anymore.
35% (after 14 weeks adjustment) Revenue growth is NO GROWTH in your opinion.
8% (after 14 weeks adjustment) EPS growth is also a NO GROWTH in your opinion.
Perhaps Netflix $700K benefit (roughly $0.01 EPS) is more growth to you.
Compare Apple's growth to Google, Microsoft, Samsung, etc. You will realize that Apple has almost the best top line growth $ the highest bottom line growth on yearly base.
A 40% growth is not sustainable. The market size & it's growth is the limit. Apple's market size is limited to the size of the high end of the smartphone market. In US Apple has more than 51% of the total smartphone market. This means more than 80% of the high end market. It's growth shall be compared to the growth of the segment of the market.
WS makes money on bullish & bearish sentiments & this changes all the time without any fundamental reason just momentum.
rate of growth is of course decelerating, it can't grow 100% forever.
Apple has a history of new prodyct launches every 3-6 years, it has only been barely 3 since iPad.
please stop parroting stuff you heard elsewheer that likely started in Samsung's marketing room. Take a look at how the iPhone is made (hint, they don't glue a piece of glass onto plastic)
Few years back I was discussing with friends what would happen when more than 50% of the US market is on the i- platform, particularly with an iPhone, and I think it is realistic to expect consumers in this market would desire product variety and choices for personalization. Can we expect to have 70-80% of the smartphone market on one platform? Do we even want that?
This just means slower growth in the US, and a need to look for new high growth markets, geographical or product-wise. And the company may very well deliver on this, as it had in the past. WS has very high expectations from AAPL as a leading tech innovator and is waiting for the next big growth thing that will change the world, as the iPhone did. Not here yet.
We know that there will be continuing profits, new products, and greater market share.
Traders don't know or care about that.
In one years from now, the deal with China mobile may also be inked.
In one years from now, the dividend may be doubled or the share buyback may be increased to a more significant level.
Some body knows what will do Netflix, Google, MS, etc. in one year from now & what new product will they bring to the market or what new markets will they reach ?
Most of samsungs smartphones are the "Galaxy Y" a three inch screened very basic phone, and others even more basic feature phone type models popular in India and China for their cheapness. Not knocking Samsung for selling phones of course but the journalists reporting on this are doing a poor job
Samsungs marketing department must be cheering because the face of samsungs smartphones is the expensive Galaxy
s3 and Note 2, which in fact make up a distinct numerical niche of their overall sales( kind of like GM making the Corvette the face Chevy).
I don't see any article using a photo of the much more popular Galaxy Y phones. Google images of that and you will see why Samsung doesn't want that.
Some people are probably annoyed by the high cost of owning a smartphone. $40 a month for me, but that is because I share plans with my family. But is the price for other smartphones any better?
The iPhone costs $499-$899 depending on the amount of memory you want and the data plan. Yes, Galaxy is cheaper, but it is all preference. I don't like how the Galaxy looks. And it is too thin for me. Plus, I don't want a bigger phone. Isn't the purpose of a phone to call from one place to another, not to watch movies or play games
they have impressive specs, but poor build quality leading to frequent freezes and other nits. this is from freinds who have them, and quick search on internet.
A feature phone is good enough for you.....
you are talking nonsense.
I'm not. I just got an iPhone because it would be cheaper if we shared the plan then got an individual won. And the phone itself was free for me.
I just hope Apple doesn't begin reverting back to chasing this tornado with dozens of new models with cutesy little names, lighter, thinner, bigger, smaller, faster, whatever..... it actually feels like Coca Cola when somebody thought it would be good idea to change the recipe. We all know how that turned out. In many ways, the iPhone 4S is exactly analogous to the original Coke - it is, and has been, somehow amazingly and simply perfect for what it is.
As for innovation - this is THE MOST innovative company in the world...does anyone seriously believe they have just stopped doing what they do best? Many prototypes are in place now. SIRI and iTunes Genius to name two, for example will provide an eventual replacement for iOS based upon voice. Many more dynamic apps that "learn" from us will emerge from this new framework with new relationships for our devices. In this context, iTV is actually fairly minor, as it is nothing more than a large iPad, but it will benefit nicely.
into
1-$QCOM ( THIS I LIKE THE MOST)
2-$AMX
3-$T
4-$VOD
5-$CHL
Look at $NLY for an option to get good dividends for you retirement