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
TheStreet Open House

Samsung Has an Innovation Problem -- It's Not Apple

Stocks in this article: SSNLF AAPL GOOGL NOK DCM

NEW YORK (TheStreet) -- Samsung (SSNLF) gets very favorable treatment from the press in comparison to Apple (AAPL) and it drives Apple bloggers crazy -- justifiably so in my opinion.

John Gruber loves to point out the subtle jabs the mainstream business press regularly loves to take at Apple for seemingly not being able to keep up with the pace of innovation at Samsung.

Samsung has done well over the past five years.

>>Apple iPhone Ad Sets Tone for Smart Home Products in the Pipeline

When the Android open alliance was first announced in 2007, Samsung was one of many Android providers. Now, Ben Evans refers to the Android community as "Samsung and the seven dwarves."

This power has made Google (GOOGL) and Samsung uncomfortable allies at times. In fact, Samsung has played around with the idea of launching its own mobile OS (Tizen). But up until now that effort has yet to gain much traction.

Let's give credit where it's due. Samsung's Galaxy phones have been a hit globally. Its Notes defined the Phablet category and remain extremely popular in Asia. And Samsung is #1 in terms of smartphone market share, according to current estimates, at 31% vs. 15% for Apple.

Perhaps because of all this, Samsung's stock (in Korea) is up 85% in the last five years.

That's good. Mind you, Apple's stock is up 292% over the same period.

But recently there's been a batch of bad news coming out of Samsung. Its CFO implied that Samsung's second-quarter results would miss on profit expectations again.

Samsung's year-over-year profits actually topped out from a growth perspective in the first quarter of 2012. Since then, the quarterly profit has been decelerating annually.

What's going on?

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,312.88 -103.97 -0.60%
S&P 500 2,010.74 -10.51 -0.52%
NASDAQ 4,679.7960 -3.6110 -0.08%

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