Market analysis is more ridiculous than astute. Salvatore Mattera in The Motley Fool.
Galaxy S4, is starting to roll out on carriers around the world. Unfortunately for the Korean tech giant, most of the reviews have not been particularly favorable.
Samsung has thrown in the kitchen sink to hype the Galaxy S4.
Most might see this as good news for Apple, it’s actually quite troublesome, since the reviews are evidence of a devastating new trend in the smartphone market.
While many have (rightfully so) attacked Samsung for stealing Apple’s innovations, the Galaxy S3’s larger screen size has set the new standard for smartphones.
Except that the standard is still iPhone 5 screen size, not Galaxy gargantuan.
More from Sam.
In addition to competition from Samsung Galaxy lineup, Apple has to compete with HTC’s One.
The problem with this type of so-called analysis is that it compares basic device hardware (albeit without any real comparison or details), while completely ignoring what sets the iPhone apart.
No doubt some loyal fans will stick to buying the latest iPhone. But for those that aren’t tied into Apple’s ecosystem, there will be half a dozen more than capable competitors to choose from.
Which is true, of course. If all you want is a phone and a few apps, choices from Samsung, Nokia, HTC, and BlackBerry are quite decent; especially when compared to smartphones pre-iPhone era.
Android will continue to be the biggest threat to Apple’s iPhone. Apple prides itself on being vertically integrated — Android is notoriously fragmented.
Sam highlights Apple’s strength, but considers Android’s fragmentation as a strength. How? Choices and innovation. How’s that working out so far?
Apple’s core business is deteriorating. As evidenced by Apple’s last earnings call, the company’s core business is deteriorating: growth is slowing and margins are compressing.
deteriorate |diˈti(ə)rēəˌrāt| verb
become progressively worse:
1 worsen, decline, degenerate; fail, slump, slip, go downhill, wane, ebb; go to pot. ANTONYMS improve.
2 decay, degrade, degenerate, break down, decompose, rot, go off, spoil, perish; break up, disintegrate, crumble, fall apart.
Does deteriorating accurately describe Apple’s current situation?
Growth, however, is slowing as it must. But Sam’s analysis forgets that the smartphone industry is not just about hardware, not just about software. It’s about the whole user experience within the ecosystem. That’s where Apple rules over very anemic competitors, and while competition is intense, which of Apple’s competitors would prefer to swap places with the iPhone maker?
All of them.