This Day On The Street
Continue to site
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

Apple vs. Samsung: More Than Meets the Eye

NEW YORK ( TheStreet) -- Apple (AAPL - Get Report) and Samsung remain the talk of the tech world as the two titans battle for mobile supremacy. The world may have reacted differently to Apple and Samsung's respective earnings this week, but there's more to the numbers than meets the eye.

Samsung's fourth-quarter net profit rose 76% to $6.6 billion, as "solid sales" of the Galaxy S3 and Galaxy Note 2 helped boost results. The Korean firm has been one of the few Android-based handset makers to earn significant money, as it goes up against the Apple behemoth in smartphones and tablets. Samsung has been able to do this because it offers something close to what Apple offers with its iOS ecosystem, even in a fragmented Android market. Android is owned by Google (GOOG - Get Report).

Most others handset makers, including Research In Motion (RIMM), Nokia (NOK - Get Report) and others have struggled to turn profits, as consumers increasingly pick iOS (Apple) or Android.

Apple Stock Plunges After-Hours: Live Blog Recap

For most of 2012, Apple could do no wrong, dominating mindshare and seeing its stock price appreciate nearly 70%. The Cupertino, Calif.-based firm continued to turn out mind boggling results and analysts kept raising estimates. Samsung, though, was hardly lying in the woods, and kept the pressure on Apple, with new products. Consumers took notice and the flagship Galaxy S III started to take off in sales. Apple also had a busy year, refreshing several major products in a short timeframe, including the iPhone 5, iMac, Mac mini, iPad. The company also introduced the iPad mini. This, however, may have led to some consumer malaise, with customers getting "bored" of Apple products, despite Apple's ongoing innovation ending.

Since the iPhone 5 went on sale on Sept. 21, Apple shares have taken a sharp downturn, falling more than 35% as hedge funders like David Einhorn and others cut their stake in the tech giant.

AAPL Chart AAPL data by YCharts

It seems that Samsung, which reportedly shipped 63 million smartphones in the fourth-quarter, according to Strategy Analytics, is the new king of mobile tech. Apple's now the underdog as its stock continues to sink. It doesn't matter that Apple sold 47.8 million iPhones in its most recent quarter, or that it earned $13.81 per share. Apple is yesterday's news, according to some critics.
1 of 2

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
Only $9.95
14-Days Free
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
SYM TRADE IT LAST %CHG
AAPL $125.36 0.67%
CHL $64.10 0.82%
GOOG $520.60 -0.18%
NOK $6.85 -0.87%
FB $85.81 0.01%

Markets

DOW 17,619.51 +23.16 0.13%
S&P 500 2,063.12 +5.48 0.27%
NASDAQ 4,986.8670 +28.3990 0.57%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs