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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Can Apple Avoid Being 'RIMMed' By Samsung?

Stocks in this article: AAPL FB GOOG RIMM P SIRI

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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