Sell Apple to Buy Samsung

After losing market share to Apple (AAPL), Samsung (SSNLF) has turned its fortunes around this year mainly due to the launch of its stunning flagship smartphones. The company’s latest smartphone launch was Galaxy S7 and Galaxy S7 Edge. However, both the products outperformed the smartphone market that can be clearly seen by the company’s latest quarterly reports.

Apart from this, most recently, Samsung launched the latest edition of its Note series to prolong its momentum ahead of the launch of the most awaited smartphone, Apple iPhone 7.
The company decided to skip note 6, and directly launched Note 7, so as to simplify the product number between its Note and Galaxy high-end handset families.

Furthermore, it is well known to everyone that Apple is on its way to launch its new iPhone 7 next month. However, it is likely that Apple is going to launch three versions of iPhone 7 – iPhone 7 Pro, iPhone 7 plus, and iPhone 7. The company has removed the earphone jack from all the versions of iPhone 7.

Apple removed the earphone jack as this results in a comparatively thinner smartphone.
Sell Apple to Buy Samsung
Image by FirmBee / Pixabay
However, Samsung’s Galaxy S7 Edge is also noticeably slim. Most significantly, Apple has not included any design changes in its new iPhone 7. Therefore, I believe that upgrades done by Apple in iPhone 7 are not enough to entice a considerable amount of customers, especially considering that customers have to pay hundreds of dollars.

In comparison, Samsung is doing something new with its smartphones, as it introduced an edge feature in its Edge models. Samsung’s strategy of including new innovative features is the primary reason that differentiates it from Apple as well as other players in the smartphone industry.

This year, the competitive balance in the most profitable part of the smartphone industry looks titled in Samsung’s favour compared to any other time in the recent past as the company has gained a massive lead by launching new smartphones with stunning upgrades that have compelled consumers to shell out big bucks for the phone. While Apple is yet to launch the iPhone 7, I am not sure if the company will be able to match Samsung’s Galaxy S7 in terms of new features.

Conclusion

Due to the reasons mentioned above, I think Samsung will snatch market share from Apple this year. Given that Apple generates most of its revenue from the iPhone, this trend is bearish for the Cupertino giant. Hence, I think Samsung and Apple make for a smart trade pair.
Published on Aug 25, 2016
By Akshansh Gandhi

Copyrighted 2016. Content published with author's permission.

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