AMZN Stock is the Winner Apple's stock has surged almost 10% since Samsung announced its first recall of the phone in early September. For instance, Apple has been very aggressive in repurchasing its own shares, while Samsung only bought back a tiny portion of stock in 2018, a "boom" year for semiconductors, and hasn't bought back any stock in 2019. The real question for investors is whether Samsung will deliver the next major technological innovation. This is a whopping 37.9 percent of the total market. Either way, design patents are looking like a hot commodity in Silicon Valley as the jury starts deliberating. Leading smartphone companies like Apple and Samsung have had years of solid growth and seemingly limitless profits. Revenue equals more than 100% due to inter-segment revenue. Samsung vs. Apple's Business Model: An Overview . Apple stock closed down 0.8% at 108.51 on the stock market today. A look at the last year's performance of both stocks clearly details this: Samsung is up 10.5%, while Apple is down 26%. Q2 2019. The numbers are effectively reversed for Samsung's semiconductor business. Therefore, Samsung's profits are much more tied to the wildly cyclical DRAM and NAND flash markets, which are subject to booms and busts than they are to smartphones. But sales of even the most popular technology eventually plateaus, and smartphones are no exception. Not only that, but the semiconductor industry is currently in the midst of a nasty downturn. The takeaway for investors is this: Apple [NYSE: AAPL] has proven again and again that it can flex and adapt to consumer expectations, and the company has long been a leader in innovation. There are no approved global depositary receipts (GDR) on U.S. exchanges -- Samsung GDRs are only listed on the London Stock Exchange (LSE), though many U.S. brokers have access to the LSE. Samsung controls about 20% of the global smartphone market, in terms of units shipped, and about a quarter of the industry's profits. Yet Samsung is facing intensifying competition from lower-priced Chinese rivals in many of its core markets, with even its flagship devices recently experiencing sluggish sales. But Apple is also sitting on a $256.8 billion pile of cash (held mostly overseas for tax purposes) that could one day be used to boost its dividend, buy back stock … If you have been paying attention to the battle between Samsung and Apple, you might have noticed that Samsung has been rather quiet about the lawsuits Apple … Apple Inc. v. Samsung Electronic Co., Ltd. was the first of a series of ongoing lawsuits between Apple Inc. and Samsung Electronics regarding the design of smartphones and tablet computers; between them, the companies made more than half of smartphones sold worldwide as of July 2012. Samsung vs Apple: What are the differences between the smartphone leaders in 2019? Samsung might beat Apple on market share for mobile phones, but Apple happily sells fewer phones than Samsung given that it means netting close to $400 profit per unit. Apple Financial Ratios for Analysis 2005-2020 | AAPL. 1 and No. You may also trade Samsung directly on the Korea Stock Exchange, the KRX, but to do so, you may have to open an account with a Korean broker or a specific affiliated bank. Financhill has a disclosure policy. Therefore, if you're thinking of buying stock in one of these two market leaders, you need to understand their nonsmartphone businesses. While nearly half of Samsung's revenue comes from the mobile segment, it accounts for just under a quarter of Samsung's operating profits. Apple competes primarily at the premium end o… Second, and more importantly, Apple is seeing impressive growth outside of its smartphone unit. Apple has not released sales figures for the iPhone 7, … Apple Inc 's competitive profile, comparisons of quarterly results to its competitors, by sales, income, profitability, market share by products and services - CSIMarket Apple was the No. After a disappointing fourth quarter, Apple stock lost some of its luster, but the smartphone leader isn’t going down without a fight. If it does, the stock price could explode. As you can see, smartphones aren't even Samsung's main profit center. Stock Research. Samsung (OTC: SSNLF) and Apple (NASDAQ:AAPL) are the No. Here's how retail spaces from the competing tech giants compare. One UI comes with an intuitive and customizable camera app Camera applications are something that every manufacturer does on their own, but of course there is also such a thing as a stock Google camera app... and it doesn't look or function great. Apple vs. Samsung Stock: The Bottom Line. Users tap, click, or swipe on their phones more than 2,500 times per day. The capital allocation policies have earned plaudits from none other than Warren Buffett, who has made Apple his largest public equity position. Here is Apple's revenue breakdown by product last quarter: Data source: Apple fiscal year Q3 2019 financials release. This usually causes Samsung to earn a lower valuation multiple than Apple. A recent poll of 42 analysts covering Samsung (as … On a unit sales basis, Samsung led the smartphone market with 22.5% share in Q2, up from 22.1% a year earlier. Precious Metals. MotleyFool . Apple shipped 72.9 million iPhones in the fourth quarter, beating the 70 million Galaxy phones sold by Samsung. Data source: Yahoo! The Apple-Samsung rivalry is about more than cellphones. Investors interested in this industry must consider which company is most likely to convince smartphone users to trade in old devices for the newest offering. While global smartphone sales are expected to decline by 1.9 percent from 2018 to 2019 – a third consecutive year of lower sales – Apple is focused on making the most of other increasingly popular technologies. Yet while most consumers view Apple and Samsung as smartphone companies, it may actually be the other parts of each company's business that most defines and distinguishes them. Within that revenue base are also about 420 million recurring paid subscriptions, which the market tends to value higher than hardware. But so are Apple's, and owning Apple is a much more stress-free experience. Welcome to the consumer electronics equivalent of an Ali-Frazier fight. While Apple’s stock has surged 33% this year, gaining $230B, Samsung has declined 7% and lost over $20B in market cap. Returns as of 01/27/2021. Samsung owes Apple $1B -- or maybe just $28M. This may be due to the controlling ownership by the Lee family. However, assuming you are willing to endure the trading headaches and cyclicality in Samsung's business, its shares do appear to be a compelling value right now. For instance, in the second quarter of 2018, just over a year ago, semiconductor prices were booming, and the semiconductor segment actually made up 78% of Samsung's operating profit. Meanwhile, those who hadn’t yet given up their old flip phones were gradually persuaded to adopt newer technology, and the industry’s biggest players made dramatic inroads into even the most underserved global markets. Cumulative Growth of a $10,000 Investment in Stock Advisor, Better Buy: Apple vs. Samsung @themotleyfool #stocks $AAPL, Apple's iPhone Sales Could Blow Up in This Market in 2021, 3 New Services Apple Could Introduce in 2021, These 2 Nasdaq Giants Are at All-Time Record Highs -- and They're Not Slowing Down, Apple Stock Could Surge 62% to $225, According to This Analyst, 3 Things to Watch in the Stock Market This Week, Copyright, Trademark and Patent Information, Consumer electronics (TVs, monitors, refrigerators, air conditioners), Information technology and mobile (mobile phones and computers), Semiconductors (memory chips and foundry). These pocket-sized devices make the power of the internet portable, and people of all ages rely on smartphones for everything from communication to monitoring home security. Stock Advisor launched in February of 2002. finance, Apple and Samsung quarterly filings. Apple vs Samsung Stock: There is no question that smartphones have transformed lifestyles at the most fundamental level. In addition to hoarding cash at the corporate level, the Lees have also added a huge amount of complexity to Samsung's ownership structure, through complicated circular ownership of Samsung's many separate (but controlled) subsidiaries. What most distinguishes Apple is its growing services division. New models aren’t different enough to justify the hefty price tag an upgrade would require, and in some cases, upgrades no longer offer features that users relied on in older versions. Weiter zum vollständigen Artikel bei "MotleyFool" One of the most promising opportunities that Apple [NYSE: AAPL] is exploring is wearables – a market that is expanding rapidly. More than a fifth of that group check their phones every few minutes. Apple Inc.(NASDAQ:AAPL)For five Samsung phones sold after 2012According to the latest news report, Just over a week after Samsung Electronics Co Ltd (005930.K Apple Inc.(NASDAQ:AAPL) VS Samsung Electronics Co Ltd (005930.KS): SAMSUNG PAID $548 MILLION ON DECEMBER 14TH — AND NOW APPLE WANTS MORE - Stocks Newswire Despite some setbacks with its line of Galaxy smartphones, the company has managed to corner a respectable share of the mobile device market. Apple stock has nearly matched AMZN, also easily outperforming the Nasdaq with a 65% one-year return. FitBit shipped just 1.9 million devices, coming in second with a market share of 24.1 percent. Shares of Apple's stock hit their 2016 high on Monday amid reports that Samsung had adjusted production of its Galaxy Note 7 smartphone to "ensure quality and safety matters.". Samsung is taking a page out of Apple's playbook by opening stores across the US. Apple sales, on the other hand, have been more resistant to this threat. Headquartered in South Korea, Samsung is a massive global electronics brand. Rapid advances in technology made older phones like Nokia’s virtually obsolete in just a few years, nearly guaranteeing repeat business from customers anxious for the latest and greatest software and features. Stocks that Funds are Buying; IBD Big Cap 20; IPO Leaders; Stock Lists Update; Tech Leaders; New? Otherwise, the company may continue to come in behind its biggest smartphone rival, Apple [NYSE: AAPL]. Apple vs. Samsung: Which Stock Will Surge in 2015? A look at the last year's performance of both stocks clearly details this: Samsung is up 10.5%, while Apple is down 26%. Wealthlab Verdict: Apple (3-1) While health monitoring isn't a big moneymaker as of yet, Cook has said that years from now, Apple may be best known for its contribution to health services, even more so than its phones. Though both stocks trade below overall average market multiples due to their reliance on hardware, which Wall Street values lower than software, Samsung is clearly cheaper Apple. Market Indexes. Energy. Samsung is up just 2% since our February endorsement (see Feature, “Samsung: Ready to Rebound,” Feb. 8). First, trading Samsung is a bit complicated, because it is a South Korean company. While no one can be sure what the next must-have technology will be, chances are Apple will have a hand in developing and releasing it. Stock Research. Data source: Samsung quarterly filings. Dec. 3, 2014, 08:11 PM. Read full article. OK, jury, what'll it be? As services and subscriptions grow as a percentage of Apple's overall revenue base, the company could begin to garner a higher multiple in the market. Innovative features could be a game-changer, and consumers may upgrade at high volume when 5G service becomes available. Apple vs. Microsoft Stock: Which is the Better Buy as the Dow's Bull Run Ends? Samsung has since counter-sued, arguing that Apple has infringed on five of its patents, two of which are standard essential patents that have to do with 3G technology, which the company licenses out. In fact, the US isn’t even number one. Ten years of annual and quarterly financial ratios and margins for analysis of Apple (AAPL). Thus, the above results could be greatly underrating the importance of memory chips to Samsung's overall fortunes. Stock Screener. To consider just one area where they compete, Apple (NASDAQ: AAPL) and Samsung (NASDAQOTH: SSNLF) so dominate the smartphone and Apple still beats Samsung's earnings growth (earnings-per-share shown below); however, earnings growth doesn't necessarily translate to share price growth. For those willing to take a leap of faith, Apple is a promising choice for continued growth. This post may contain affiliate links or links from our sponsors. Find out why Apple is one of the 10 best stocks to buy now As the smartphone is perhaps the most important technological device so far this century, most investors know these two large-cap companies as it relates to this intense rivalry. Image source: Getty Images. As you can see, its services, which include Apple Care, Apple Music, iCloud, and commissions from the App store, garnered just over 20% of revenue last quarter and grew almost 13% year over year. Samsung's One UI adds that while you don't have detailed battery data on stock Android, which we find frustrating. Though both stocks trade below overall average market multiples due to their reliance on hardware, which Wall Street values lower than software, Samsung is clearly cheaper Apple. 3 smartphone brands by global units sold, respectively -- though Apple's premium brand allows it to take home the lion's share of the industry's profits. Of course, it isn’t all bad news. Apple Warns Stores About Shortage of Replacement IPhones The supply chain chaos may last only a few weeks, but it’s already wiping out the smartphone industry’s hopes … For investors, the question is this: is there still money to be made from buying stock in smartphone design and manufacturing companies? $712 mln vs. $765 mln; FactSet consensus $727.4 mln Top Dividend Stocks. The author has no position in any of the stocks mentioned. Economy. The company is well-diversified, and there is a commitment to investing in research and development to create ever-more-innovative technology. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. In 2018, sales were far below forecast, and the truth was clear: there are plenty of excellent smartphones on the market, and today, everyone who wants one has already purchased one. The smartphone giants have long been the largest players in the market, but how do they compare with each other? Katie Canales In addition, CEO Tim Cook is also quite bullish on Apple's healthcare initiatives. I think both companies are currently excellent values, but investors with a lower risk tolerance should probably opt for Apple. For example, Ethiopia – often ranked as the poorest country in the world – has surprisingly high smartphone usage. Market data powered by FactSet and Web Financial Group. Compare these figures to FitBit, a company that has long dominated the wearable space. Second, and more importantly, Apple is seeing impressive growth outside of its smartphone unit. When combined with tablets, average daily usage goes up to four and a half hours. It is fair to say there is no love lost between Apple, Inc. (NASDAQ: AAPL) and Samsung Electronics Co. Ltd. … Samsung -- outside of being a harder stock to trade for some stateside investors -- is in a bigger hole. In addition, it is also somewhat difficult to trade Samsung's stock. Investors choosing between Apple [NYSE: AAPL] and Samsung tend to land squarely with Apple [NYSE: AAPL]. However, both companies have excellent balance sheets and also pay out healthy dividends to investors. Square Vs Mastercard Stock: Which Is Best? Researchers who have studied smartphone usage offer the following eye-opening facts: These figures aren’t exclusive to the United States. That small disparity, and just the practicalities of Amazon’s business being pandemic-friendly, and Apple’s not, is enough to give AMZN the nod in the battle of Apple vs. Amazon stock. Apple's valuation may also benefit from the fact that it is a bit more shareholder-friendly than Samsung. When Financhill publishes its #1 stock, listen up. The company's results are less volatile, and its corporate governance is much, much better. After all, the #1 stock is the cream of the crop, even when markets crash. These four new services have the potential to greatly augment Apple's services contribution going forward. Smartphone users in Brazil and China spend the most time with their devices. That will help determine which stock is the better buy for your portfolio today. Start Here; My Stock Lists; Stock Spotlight; Your Weekly Review; Research. Perhaps the most important distinction between these two companies is that Apple is much more of a consumer brand and ecosystem, whereas Samsung is more of an industrial conglomerate with large economies of scale. Apple Watch sales grew 32 percent year over year, and 2.9 million were shipped to consumers. First, trading Samsung is a bit complicated, because it is a South Korean company. Investors choosing between Apple [NYSE: AAPL] and Samsung tend to land squarely with Apple [NYSE: AAPL]. I love looking at the "story" behind investments from an interdisciplinary point of view, with an equal appetite for high-growth disruptors and beaten-down value names. Apple’s smartwatch hasn’t made a significant impact in its revenues yet, but all signs point to future success. This indicates that Apple is more likely to make a dramatic comeback that brings profits in for investors. However, like Apple, Samsung’s smartphone sales hit a lull in recent years due to market saturation. Samsung isn’t having quite as much success. Benjamin Rains. 7:10a Opinion Why the smartest stock investors are passing on most SPAC IPOs 7:04a Baker Hughes Q4 oilfield equipment rev. Interest Rates. Commodities. Samsung is Korea's largest company, a sprawling conglomerate spanning phones, consumer appliances, and, most importantly, memory and semiconductor chips. * TTM = trailing 12 months. More than half of individuals between the ages of 18 and 29 check their phones a few times each hour. Financhill just revealed its top stock for investors right now... so there's no better time to claim your slice of the pie. Not only that, but its operating profit was more than double that of the recent quarter, at 14.9 trillion won, versus last quarter's 6.6 trillion won. Apple is also planning to return even more, with the clear, stated goal of becoming cash neutral (cash equal to debt) over time. However, Apple is set to unveil even more services this year, with four major new services just hitting, or about to hit, the market: Apple News+, Apple Arcade, the Apple credit card, and Apple TV+. An amazing 7.7 million units were sold. Cloudflare Vs CrowdStrike Stock: Which Is Best? Complementary services like online banking, smart home platforms, gaming, and video streaming required constant upgrades in speed and storage, and consumers were happy to trade up every year or two. While Apple's hardware, especially the iPhone, is subject to its own cycles, they are not nearly as severe as Samsung's semiconductor business. Though smartphone sales aren’t hitting the mark, Samsung has plenty of other profitable businesses to fall back on. Meanwhile, Apple has been the epitome of shareholder-friendliness, returning a whopping $50 billion to shareholders via buybacks, or about 5% of the current market cap, over the past nine months alone. North American wearable sales reached $2 billion for second quarter of 2019, and total shipments increased 38 percent year over year. If so, which company is most likely to produce continued growth and strong profits? Exchange Rates. Is Apple or Samsung a better smartphone stock to own in 2015? Some analysts question how much Samsung can realistically expect to grow in coming years, as it has already connected with most consumers in the markets it currently serves. 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