Friday, 27 September 2013 18:24

Here I go again – Hardware is Dead & Samsung Agrees Featured

Within two years of getting the mobile computing crown (toppling Apple and insuring that Nokia and Blackberry didn’t stand a chance), Samsung is already prepping to relinquish it. I know, the hoi polloi screams from the common street analyst’s rooftop, incessantly chanting “… but Samsung is dominating handset sales, creating and literally owning categories, and essentially out Appling Apple!”

Well, the reason why I apparently out-maneuver the Street in this space (as in others) is not vastly superior intellect nor a LiPoSilica Oxide powered crystal ball borne from some extraterrestrial technology. It’s actually so much simpler than all of that.

I pay attention!

If you look at the rise and fall of:

  1. Blackberry (formerly known as RIMM, reference When Berries Go Bad)
  2. Apple (formerly known as unbeatable New Apple Research Coming Up, But BoomBustBloggers Don't Need It For Apple's Performed Exactly As I've Forecast!)
  3. and Samsung (currently [and ignorantly] known as the market leader, reference Samsung Follows Footsteps Of Apple, HTC,…and Samsung Will Be Ready To Do That Fruit Thing, Just Like Blackberry & Apple - Courtesy Of Google, #MarginCompression!

You will see an undeniable patter of revenue and profit peaks, then revenue peaks (sans the profit peaks), then outright margin compression. I’ve pointed each out in explicit detail to subscribers, causing me to wonder why I’d send the alarm on Samsung for freeJ. Well, there’s a reason for everything!

Once it comes to profitability and margins, We Reached "Peak Premium Smartphone… Ignoring raw fundamentals and margins, let’s look at the newest crop of hardware. The much ballyhooed Samsung Galaxy S4, although breaking sales records, produced much less revenue that both Samsung and its analsysts anticipated. From a technological standpoint, it's simply a spec bump from its predecssor (the S3) and a collection of software gimmicks with the hope of eventually forking Google's Android in an attempt to stem the inevitable margin compression tide coming down the pike.

The upgrade to the pre-eminent phablet, the Samsung Note 3, was much anticipated by many - including yours truly. Again, it was essentially just a spec bump (using widely available components, at that) that didn't even have the top of the line specs due to Samgung's extreme success as of late.

You see, because Samsung sells so many phones now, it just can't simple procure the best and the latest tech to incorporate into its gadgets. It has engage into very heavy supply chain management and logistisc, ala Apple. Samsung is also encountering the same foibles that Apple did, namely supplying what seems like insatiable demand - even if that means including inferior parts. The Note 3 uses essentially the same Sony sourced Exmor camera that the Galaxy S4 uses (as well as about half the market) with not jump in specs. Performance was reached (or at least they tried to reach it) by using additional software tricks and gimmicks such as digital image stabilization (essentially, fancy cropping and interpolation). This was done because the hardware components that allow for lossless/noiseless optical image stabilization were not available to Samsung in the volume that it needed. This is important, because the camera is one of the most important and oft used parts of a smart phone. Samsung has basically upgraded the Note 2 via a faster commoditized CPU and screen while its competitors have leapedfrogged it in both performance and innovation by truly creating something different, better, and useful.

Does this some familiar? Reference 

 Deconstructing The Most Accurate Apple Analysis Ever Made - Share Price, Market Share, Strategy and All


Next up, I will show you - visually, how Samsung has already done the Apple thing. After that, we will address the abysmal state of security in the mobile realm and how government disinformation strives to keep it that way. Most importantly, for my subscribers, I will walk you through exactly what it is you can do about it.

Last modified on Friday, 27 September 2013 18:46 | This email address is being protected from spambots. You need JavaScript enabled to view it.