Why Is ‘Bad For Samsung’ Bad For Apple?

Posted: June 29, 2014 in Android, Apple, Business, Farros, iOS, Royal, Technology and Business
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Disclaimer:  I continue to be on an AAPL bandwagon… sorry in advance!

Just read a Motley Fool piece entitled, “Samsung’s CFO Said Something That Might Concern Apple Shareholders.

The article suggests that if Samsung is having mobile problems (particularly in emerging markets), maybe Apple could be, too?  That’s certainly a reasonable suggestion.

But, what the article doesn’t even contemplate is this:  Maybe Apple is gaining marketshare?

Wasn’t AAPL’s last quarter bolstered by some smart discounting in the emerging markets?  Maybe that good trend is continuing?

But from the bigger picture point-of-view:  Does anyone really think the mobile business is slowing down?

Like clothes and food and water, mobile is the one thing that everyone on the entire face of the planet really, truly might have to buy… and given the changing nature of technology, apparently buy over and over again.

Except, unlike clothes and food and water, which you can buy from literally about a zillion companies… it feels like you can only buy mobile from two places right now:  Apple and Samsung.

(Take a step back for a moment… that’s a pretty freakin’ amazing statement to make… no wonder Apple is the world’s most valuable company.)

So… when the CFO of Samsung says their quarter isn’t “look[ing] too good,” I kinda read that differently than Sam at The Motley Fool.  What this suggests to me is that AAPL’s upcoming quarter might not be as “throw away” as a lot of people think.  I believe AAPL has meandered downwards over the last few weeks exactly because of this type of erroneous thinking.

If Apple, indeed, pulls another rabbit out of its hat (like it did last quarter), that could set up another potential earnings pop… unless, of course, AAPL starts climbing in anticipation of that beforehand.

Either way, I think we’re higher by 5-10% after quarterly earnings than we are now ($91.98), especially after touching the $80’s last week.

We’ll see.

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