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

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

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

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
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!
SSNLF $1,275.00 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs