This Day On The Street
Continue to site
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 Is Losing to Samsung, Not to Google

Samsung also hopes to get into the "class" end of the market with new "wraparound displays" that put function keys on the side of the phone. Apple, meanwhile, may abandon Corning (GLW), the maker of its past displays, for a new technology based on artificial sapphire. Apple is also targeting Samsung's share in India and China through new agreements with carriers aimed at bringing down the upfront cost of its phones.

The result is that, despite Apple's successful monetization of its iPhone and iPad, UBS has a neutral rating on the stock, even though Apple has a below-average price-to-earnings ratio of 13.2 and a $3.05-per-share dividend that now yields 2.34%. 

Samsung is doing precisely what Microsoft (MSFT), which now has 4% of the mobile market, did to Apple more than two decades ago. Apple was years ahead of the pack with its Macintosh PC, but Microsoft was able to make the business market wait for Windows through alliances with companies such as IBM (IBM), in part thanks to high Apple prices, and it eventually dominated the market.

But it's not Google that's Microsoft in this case. And it's certainly not Microsoft that's Microsoft in this case. It's Samsung. That's the story investors need to watch in 2014.

At the time of publication, Blankenhorn owned shares of Apple, Google and IBM.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
2 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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
AMZN $671.00 -0.05%
GOOG $695.81 0.50%
FB $118.08 0.55%
TSLA $234.18 0.80%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs