It is a question that has come across the minds’ of many people: As the world’s largest company by market cap continues to let customers down with under performing devices, can Apple really stay at the top forever?
While Apple’s stock has enjoyed a very strong year, lower than expected sales could show that the phone market has finally started to turn against the tech giant. But if Apple does start to decline, who can take their place at the top?
According to Investopedia, Samsung stands a great chance.
After suffering a very rough 2016, Samsung Electronics Co Ltd. stock has surged more than 70% over the last year and more than 50% year-to-date (YTD), Google Finance figures show as of Tuesday (Oct 24, 2017), significantly outperforming Apple Inc. (AAPL)
It isn’t just the stock that has people excited. One of the things that has frustrated Apple users for years is that the hardware in their phones is consistently inferior to their Android counterparts. In fact. if you compare the iPhone 8 to its Samsung equivalent, you can see it comes up short.
Samsung has the devices to make it happen and already has a solid base to build from. Investopedia also points to the company’s dominance of the chip market as another major asset that could help the company surpass Apple.
Yet for all of these advantages, Samsung still has a long way to go. According to BGR:
Jaffray’s semi-annual survey of US teens shows that 78 percent of those surveyed own an iPhone, up two percent from this spring, and the highest ownership level ever recorded by the survey. Even worse, 82 percent of teens surveyed say they want their next phone to be an iPhone, which is — you guessed it! — the highest interest level ever recorded.
The issue is therefore twofold. While Samsung has to convince investors that their stock is a better option than Apple’s, they still have to convince the entire teen demographic that their devices are the way to go. That part of the battle may be a harder fight to win.
Even so, investors should look at Samsung for its stock performance as a clear indication that the company is recovering. If Apple continues to slip, they should be the favourite to be on top, and investors should aim to be a part of it.
To read Investopedia’s article on Samsung outpacing Apple, click here.
To read BGR’s article on why Samsung still has a long way to go before it dominates teh market, click here.
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