Friday, March 15, 2013

It sounds like music to my ears... tell'em kid!

Read today here:

Brian White of Topeka Capital Markets, who has a Buy rating on Apple shars and an $888 price target, writes that “we view the Galaxy S 4 as a refresh but NOT a game changer.”
“We believe the iPhone 5S will handily outsell Samsung’s new flagship smartphone in the second-half of the year, while we believe Apple will expand its world with a lower-priced iPhone in 2013.”
Samsung is engaging in something of a “shell game,” thinks White:
One of the strong points of the Galaxy S 4 is the Full HD Super AMOLED display with 441 ppi, above the 326 ppi found on the iPhone 5 and the 400 ppi on the new LG (066570 KS- KRW79,800: NR) Optimus G Pro. However, the Galaxy S 4 is slightly below the 443 ppi five-inch smartphone introduced by Sharp (6753JP) in 4Q12 with IGZO technology and the 498 ppi display that was shown off at CES. Essentially, we expect competitors to unveil smartphones with a similar ppi this year and ultimately we believe Apple will adopt Sharp’s IGZO display technology [...] We consider the iPhone 5 a work of art and Apple’s ability to deliver a device that came with a larger screen (4-inch vs. 3.5-inch) versus the 4S but one that was 18% thinner and 20% lighter was a monumental task. By comparison, the Samsung Galaxy S 4 is 5 inches vs. 4.8 inches for the Galaxy S 3 but only 8% thinner and 2% lighter. At the same time, the iPhone 5 is 4% thinner than the Galaxy S 4 and 14% lighter. With the iPhone 5S expected to launch this summer, we believe Apple has the potential for even further improvements in this department. Also, polycarbonate (i.e., plastic) casing of the Galaxy S 4 is still no match for the aesthetics of the iPhone 5 with the aluminum unibody enclosure. Samsung’s Smartphone Shell Game Obfuscates Apple’s Share Growth. We are amazed by how analysts and the media have turned on Apple during the recent stock downdraft with statements that Samsung is “out-innovating” Apple. One would believe that Samsung is crushing Apple in the mobile phone market. We believe this is complete nonsense. We believe the smartphone market share comparison between Samsung and Apple is like comparing apples with oranges. When analyzing the mobile phone market in 4Q12 as reported by IDC, Samsung grew its mobile phone unit shipments by 12.3% YoY vs. 29.2% for Apple.

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