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
TheStreet Open House

The Skeptic's Guide to Samsung Pundits

NEW YORK ( TheStreet) -- As a student of Skepticism, I really enjoy uncovering the logical fallacies tech writers create when pitting one company against another.

I enjoy it because it's fun watching them get caught up in their own exuberance trying to make a point and miss the opportunity due to lazy journalism. This seems seems to happen more when it involves someone trying to knock down Apple (AAPL).

I was alerted to just such a piece by an apparent detractor of mine, who is also a follower of my AppleInvestor Twitter feed. He's obviously a Samsung fan, evidenced by the Samsung Twitter references he stuffed in the tweet.

I guess he thought by sending me the tweet he was offering incontrovertible evidence that Samsung had gained an advantage over a hapless Apple. Somewhere in his mind, he probably thought this spelled impending doom for the iMaker.

I really wasn't concerned, I get these things every day. It's the curse of being an Apple evangelist. However, I still wanted to see what this Samsung pundit had to say because you never know -- there could be something interesting to ponder, an alternative, well-reasoned viewpoint.

The article was written by Adam Hartung, a contributor for Forbes.

I had to read the article several times, because I was confused over the points the author was trying to make.

Then I realized his argument that Samsung had "found Apple's Achilles' heel," was built upon a logical fallacy. Here's the key information he offered as evidence; unfortunately, he completely failed to connect it with any sort of premise.

Samsung took advantage of Apple's oversight. Samsung maintained its SG&A budget at 15% of revenues -- even growing it to 24% for a brief time in 2009, before returning to 15%....Instead of looking back at its old ad budget in dollars...Samsung allowed the budget to grow...along with revenues...And that's how Samsung changed the game on Apple. Once America's untouchable brand...People now question Apple's sustainability.

Nowhere in the article does Hartung explain how this information is relevant, or how it makes this a "game changer" for Samsung, although earlier in the article he does wax fantastic how great Apple once was.

I was really hoping to read a reasoned argument. Instead, I was left confused.

-- Written by Ernie Varitimos, author of the Apple Investor blog.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Ernie Varitimos has a long history with Apple as an investor, trader and consumer of its technology. He started his career as a rocket scientist and has spent the past 25 years driving, controlling and influencing technology in the financial industry. Ernie is a former hedge fund manager and current futures trader.

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!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

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