This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Can Apple Avoid Being 'RIMMed' By Samsung?

While Samsung in making tremendous strides by pricing its phones lower, however, what it needs to do in order to truly "RIM" Apple is to figure out of way to take away Apple's margins in the high-end devices where Apple is the clear-cut winner. For Samsung to do that, it will need to get its current customers to pay for the higher-margin phones - a task that will not come easy.

Bottom line

As we are quick to point out all of the great things that Apple is doing and offering standing ovations for its brilliance and creativity, the company has shown a history of not playing well from behind. We first saw this when the rise of software giant Microsoft (MSFT) and the dominance of the personal computer almost sent Apple into bankruptcy -- essentially, the word "Apple" almost became a verb of its own.

While it is grossly premature to say that Samsung is on the verge of burying Apple, it is not out of the realm of possibility that it could happen. After all, although Apple appears unbeatable today, on Wall Street there is no such thing as infinite success.

Instead, it is a cut-throat industry where the market leader (in this case Apple) is always the target of every rival wanting what it has. The question is, will Apple be foolish enough to make the mistake of allowing Samsung's ascent to dictate its next move? Or, worse yet, will it become complacent, rest on its laurels and do nothing?

At the time of publication, the author was long AAPL, MSFT and held no positions in any of the other stocks mentioned, although positions may change at any time.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.91 -0.14%
FB $79.12 -0.79%
GOOG $571.24 -0.02%
TSLA $199.73 1.20%
YHOO $42.62 -3.40%

Markets

DOW 18,181.84 -106.79 -0.58%
S&P 500 2,103.93 -13.46 -0.64%
NASDAQ 4,969.1350 -38.9610 -0.78%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs