Friday, 06 September 2013 10:39

Samsung Follows Footsteps Of Apple, HTC, Nokia - Wasn't That Quick? ^Featured

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I believe I was one of the first financial types to extol both the virtues and the potential of Samsung in the handset space early on. Way back in the days of (3 years ago) the Galaxy S2 I said that Samsung, with the assistance of Google's Android, will eat Apple's lunch. Those who don't regularly follow me should reference A Quick Peek Into the REAL WORLD Logic That Went Into Building the BoomBustBlog Apple Model: It’s Called Compression!!! and Deconstructing The Most Accurate Apple Analysis Ever, to wit...

Well, nothing lasts forever and I've said it before, and I'll say it again...

Smartphone Hardware Manufacturers Are Dead Nov 29, 2012 - Two and a half years ago I declared in my mobile computing wars series that Google would commoditized the mobile computing space, th...
Computer Hardware Vendors Are Dead, Part Deux! Dec 10, 2012 - Last week I told the world that hardware vendors are DEAD! At least the fat margin business model hardware vendors (like those whose name
What Sell Side Wall Street Doesn't Understand Jan 25, 2013 - Or at least the fat margined hardware model. Reference SmartphoneHardware Manufacturers Are Dead and Computer Hardware Vendors Are
Angels, ArchAngels and Data Demons Jun 7, 2013 - Remember, I proclaim smartphone hardware vendors are dead! Google's recent comments support that assertion, as well as recent market

You have to keep innovating in the mobile handset space or your margins will start dropping and your product will be commoditized. This is guaranteed! Paying subscribers should feel free to email me about this if they have any questions. Institutional and professional subscribers are free to call me and chat in depth as well.

I've written several articles on this topic, with Samsung, Apple, RIMM, NOK and HTC used as prime examples:

n early 2010 I warned on Blackberry (then RIMM), with market share loss to Android being the prime determinant... Many More Black Eyes for the Blackberry? A Complete Forensic Analysis of Research in Motion. I put significant data out in the public domain to illustrate my point and put explicit price points out for subscribers, ie. RIM Smart Phone Market Share, RIP? Was I right?

Apple Gears Up To Combat The Margin Compression That Apparently Only It, Google & Reggie Middleton Sees Coming, it's impressive. This tech is moving lightning fast and the price points aren't budging, although the margins are collapsing in this fast moving space.

The Apple Profit Engine Has Stalled & Is Rolling Downhill

Apple is facing a shart decline in the margins of its top two value drivers. May I also add that these two value drivers are 83% of Apple's revenues and an even greater portion of its profits. Such a drastic concentration in only two products who have reached their zenith is not a good thing!

Click the graphic once to view, twice to enlarge to printer quality...

Reggie Middletonss Ultimate Apple Value InfographicReggie Middletonss Ultimate Apple Value Infographic

Of course, there is a point at which Apple is a good buy. After all, they have a lot going for them. The question du jour is, exactly what is that point? I refer my subscribers to the research documents below for the answers...

The following articles explain margin compression in what seems like market leaders:

Looking Through Windows To See The Big Data On Fruit - Or Aug 7, 2013 - ...and this was exactly as predicted in Samsung Will Be Ready To Do ThatFruit Thing ... and Smartphone Hardware Manufacturers Are Dead
Samsung Will Be Ready To Do That Fruit Thing ... - BoomBustBlog Mar 7, 2013 - applecutsabreandriod3d Two and a half years ago I declared in my mobile computing wars series that Google would commoditize the mobi...
Apple Gets Sliced and Diced As Google Enjoys Fruits Of Long Jul 25, 2012 - First things first, those who still believe Apple can walk on water are setting themselves up for a big one. I haven't received so much flak abou...
Blackberries, Apples & Fruit Borne Successitis May 27, 2013 - Blackberries, Apples & Fruit Borne Successitis - The Problem With the original trajectory of the original vision, which was to make the thing an

I queried in the very recent past, "Have We Reached "Peak Premium Smartphone"? Google is commoditizing the entire portable computer space. They can do this because they benefit regardless, as long as the masses are moved to the cloud. See

Proof of this is found in the very moderate, "evolutionary" progression of the Samsung Galaxy Note 3.Being a proponent of these high end Samsung products, there's not a lot that would prompt me to change from my LG Optimus G Pro to the note, and that should make Samsung very nervous. From a functional perspective, Sony, LG and HTC likely have it beat - as well as some Chinese manufacturers. That's pretty quick seeing as Samsung just made it to the top last year. Yes, like Apple, Samsung can ride its consdierablbe brand recogntition for a couple of years, but the end of the day, it will have to continue to innovate. The Galaxy Gear smartwatch is also equally unimpressive. There just doesn't seem to be enough practical innovation or usage argument to warrat a purchase from a high end user such as myself.

The functionality of the Gear smartwatch, like most smartwatches that I've seen seem to be akin to a solution searching for a problem to solve. Contrast this to the truly revolutionary, game changing, paradigm shifting Google Glass and you will get the picture.