| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
 Apple Inc. AAPL | $226.01 | 3.35T | 6.59 | 0.45% | Technology | 164,000 | 7 hours ago | ||
 SamsungElec 005930.KS | $71,600.00 | 471.66T | 0.00 | 2.07% | Technology | 0 | 20 minutes ago |
In the ever-evolving tech world, few things remain constant. However, one unyielding truth from 2013 is the dominating presence of Apple and Samsung in the global smartphone market. With titans like Blackberry and Nokia attempting, yet failing, to topple their reign, these two giants continue to dominate, virtually capturing the lion’s share of the industry’s profits. Here’s a deep dive into their sustained supremacy and why these companies remain unrivaled.
The Invincible Hold of Apple and Samsung
Apple Inc. (AAPL) and Samsung are, without a doubt, the powerhouses of the smartphone world. Their competitors’ continuous efforts to penetrate the market have proven largely futile, serving only to further highlight the dominance of these two giants.
Editor's Note: Analysis and insight for this article were originally sourced sourced from our friends at The Motley Fool
Apple Inc. (AAPL): Innovation That Guarantees Dominance
Apple’s story is one of innovation and relentless pursuit of perfection. As the market leader, Apple’s approach is straightforward – offer the best quality and make sure it’s user-friendly. As Andrew Tonner emphasized on June 1, 2013, “When it comes to actually making money, it’s Apple, Samsung, and everyone else.” The company’s robust financial performance speaks volumes about its successful market strategy and the loyalty of its consumer base. Quarter after quarter, Apple reports staggering profits, proving that its strategy is sound and reliable.
Innovation is the key driving force at Apple. The company’s ability to continually introduce groundbreaking products keeps it ahead of its competitors. This focus on innovation has cultivated a dedicated user base that eagerly awaits each new product launch. For investors, this spells long-term value. Apple’s stock has consistently delivered impressive returns, making it a top pick for anyone looking to invest in the tech space.
Analyst Ratings for Apple (AAPL)
Here is a summary of the analyst ratings for Apple (AAPL):
| Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|
| Moderate Buy | $223.57 | $230.54 | -3.02% | 35 |
Analysts’ Outlook Summary:
- Consensus Rating: The consensus analyst rating for Apple (AAPL) is Moderate Buy, based on 24 buy, 10 hold, and 1 sell ratings from 35 analysts.
- Average Price Target: The average price target for Apple is $223.57, which represents a potential decrease of 3.02% from the current price of $230.54.
- Brokerage Recommendations: Apple has an average brokerage recommendation (ABR) of 1.75 based on 30 brokerage firms, with 18 strong buy, 3 buy, 8 hold, 1 sell, and 1 strong sell recommendations.
Samsung (005930.KS): Keeping Pace in a Tech War
Though not always mentioned in the same breath as Apple in investment discussions, Samsung’s role in the smartphone market is undeniable. The company’s success pivots on its diverse portfolio and constant technological advancements. Samsung’s investment in Research and Development (R&D) keeps it at the forefront of technology, giving it a significant competitive edge. As cited by Tonner, “It’s been well documented that the Apple/Samsung duopoly in this space is as intact as ever.”
Samsung’s ability to maintain such a strong market presence amidst fierce global competition underscores its effective business and marketing strategies. Its revenue isn’t just from consumer electronics; it spans various sectors, including semiconductors and display technology, solidifying its market position and reducing vulnerability to market shifts in one sector.
Analyst Ratings for Samsung Electronics Co., Ltd.
Here is a summary of the analyst ratings for Samsung Electronics Co., Ltd.:
| Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|
| Outperform | 87,400 KRW | – | +3.31% | 4 |
Summary of Analyst Outlook:
- Rating: The overall consensus rating from analysts is “Outperform.”
- Price Target: The average price target stands at 87,400 KRW, which represents a potential gain of 3.31%.
- Current Price: The current price of Samsung Electronics Co., Ltd. is not indicated in the sources.
Blackberry and Nokia: The Cost of Failing Innovation
While Apple and Samsung bask in success, other players like Blackberry and Nokia struggle to remain relevant. These companies, once giants themselves, have found it challenging to keep pace with the rapid innovations and consumer expectations set by Apple and Samsung.
Nokia and Blackberry have both made aggressive moves to reclaim their positions in the market. However, their efforts have largely been in vain. For instance, Blackberry’s focus on security and business-oriented smartphones, though commendable, hasn’t significantly dented Apple and Samsung’s market share. Similarly, Nokia’s attempts to rebrand and innovate have not yielded the favorable outcomes they hoped for.
For investors, these companies bring substantial risk. While their stocks might appear attractive in the short-term due to lower prices and potential for turnaround stories, the ongoing dominance of Apple and Samsung makes significant long-term gains seem unlikely.
The Financial Divide in the Smartphone Space
The financial disparity between Apple/Samsung and their competitors is stark. Within the first quarter of 2013, Apple and Samsung’s combined profit figures dwarfed those of their competitors. Tonner highlights, “Apple and Samsung divided all the profits in the smartphone space once again in the first quarter of this year. Simply amazing.” This substantial economic moat demonstrates how difficult it is for any other company to break into this duopoly.
For investors, this financial landscape holds crucial implications. Investing in market leaders like Apple and Samsung not only provides stability but also offers considerable growth opportunities. Their continued innovation and dominance ensure they remain profitable, thereby offering sustained returns to their shareholders.
Will The Apple-Samsung Duopoly Ever Falter?
Looking ahead, the question on everyone’s mind is whether the duopoly of Apple and Samsung will continue. Experts suggest that while emerging technologies and new market entrants could potentially shift the dynamics, the current strategies and resources of Apple and Samsung make them exceptionally resilient to such disruptions.
However, the tech landscape is notoriously unpredictable. Breakthroughs in fields like artificial intelligence (AI), augmented reality, and 5G technology could pave the way for new contenders. As cited by Tonner, AI has the potential to accelerate value creation, potentially leading to several new trillion-dollar companies in the future. Investors should keep an eye on such emerging trends and be prepared to adjust their portfolios accordingly to maximize returns.
Investing in the Titans: Why Apple and Samsung Are Top Picks
For those looking to invest in the smartphone market, Apple and Samsung represent the best picks. Their proven track records, robust financial performance, and continuous innovation ensure that they remain at the apex of the industry. Despite the efforts of companies like Blackberry and Nokia, the smart bet remains on the undisputed leaders: Apple and Samsung.
In conclusion, the smartphone market of 2013 clearly belongs to Apple and Samsung. Their unwavering dominance serves as a testament to their strategic prowess and innovation. For investors, betting on these stalwarts not only promises stability but also positions them for substantial future gains. As the tech world continues to evolve, Apple and Samsung are undoubtedly the ones to watch.