In the first part of this series, we looked at Goldman Sachs analyst Rod Hall’s views about the new Samsung (SSNLF) Galaxy Fold and how it could pose a risk to Apple (AAPL). Now let’s move on by looking at why Apple shouldn’t take the threat from Samsung Galaxy Fold lightly.
The threat to Apple from Samsung Galaxy Fold
Despite the rivalry between the two companies, Samsung is still one of the prominent component suppliers to Apple. Samsung supplies OLED (organic light-emitting diode) displays for Apple devices. However, in 2018, Apple reportedly added LG as its second display supplier.
Samsung claims Galaxy Fold to be the world’s first phone that has a 7.3-inch QXGA+, or as the company calls it, “Infinity Flex Display.” The phone also has a 4.6-inch cover display that can be used when the device is folded. Also, the phone comes with six built-in cameras including three rear cameras, two front selfie cameras, and one cover selfie camera.
Galaxy Fold’s innovative features like the foldable display and the wireless battery power-sharing are some of the features that iPhone buyers pay a high premium to Apple for. Plus, consumers expect Apple to make such innovative technology available first.
Earlier this year, Apple had to cut its first quarter of fiscal 2019 guidance due to its deteriorating iPhone sales. According to the IDC report, Apple’s smartphone market share in China fell to 11.5% in the quarter, which ended in December 2018, compared to 12.9% in the quarter that ended in December 2017. It is high time that Apple act and innovate to regain its customers’ confidence in its smartphones before it’s too late.
On a year-to-date basis, Apple has gone up by 8.4% as of February 21. Microsoft (MSFT), NVIDIA (NVDA), Alphabet (GOOG), Facebook (FB), Amazon (AMZN), Netflix (NFLX), Oracle (ORCL), Intel (INTC), Advanced Micro Devices (AMD), Micron (MU), and AT&T (T) have risen by 7.7%, 16.7%, 5.7%, 22.1%, 7.8%, 33.4%, 15.4%, 9.5%, 29.6%, 30.9%, and 8.0% YTD, respectively. Chipmaker Qualcomm has lost 8.0% YTD.
NRG Energy (NRG) is scheduled to report its fourth-quarter and fiscal 2018 earnings on February 28.
Hibbett Sports (HIBB) stock surged 22.3% as of 1:54 PM ET today as the company reported impressive results for fiscal 2019's fourth quarter, which ended on February 2.
Wall Street analysts expect a potential upside of 21.63% for Alexion Pharmaceuticals based on the stock's closing price on March 21.
Today, we got another round of dismal data points from Europe (VGK)(EZU). According to a Markit survey, Germany’s (EWG) March PMI Composite Output Index fell to a 69-month low of 51.5.
On March 21, US crude oil’s implied volatility was 24.9%, which was 6.7% below its 15-day average. Usually, lower implied volatility supports oil prices.
The overall cannabis sector took a hit today amid the broader market's declines. The volatility index (VIX) jumped 17.9%, and the cannabis sector is more sensitive than the market.
The tech-heavy NASDAQ Composite Index (QQQ) is on track to post its 12th weekly gain in 13 weeks.