Barclays says Samsung momentum ‘begs an answer from Apple’

By , Feb 19, 2013

iphone user

It’s no secret that Apple has fallen out of the good graces of most Wall Street analysts. And with its stock price still bouncing around $250 below its last-September high, and no new products on the horizon, it doesn’t look like that’s going to change anytime soon.

I wouldn’t say Apple’s in trouble though. It’s coming off a record high quarter in iPhone sales, revenue and other metrics, and has more than $130 billion in cash. But the folks over at the prestigious Barclays firm say that it’s about time for Tim Cook to panic…

Barclays analyst Ben A. Reitzes sent out a note to investors this morning (via BusinessInsider) entitled ‘Samsung Momentum Begs An Answer From Apple.’ Reitzes says that Apple must expand its iPhone market this year in a big way, or risk falling way behind.

“To say that the Samsung momentum is an issue for Apple is an understatement,” Reitzes said. “Not only is Samsung helping its own cause, but it catalyzes Android as well. As a result, we need to see Apple expand its iPhone market this year in a big way — and improve its platform in 2013.”

Samsung is expected to announce a new flagship handset, the Galaxy S IV, next month, which has already created a fair amount of buzz. And, in addition to its release, the company is also presumed to drop the price on its already popular Galaxy S III handset.

So with Samsung having top-notch offerings in both the low-to-middle and high-end markets, Reitzes doesn’t think Apple’s current iPhone lineup can hang, without making some major changes. Thus, he suggests it release a budget smartphone, and revamp iOS.

Now, we’ve heard multiple rumors in the past month that Apple is planning on releasing a less expensive iPhone this year. Recent reports suggest it’ll be made of metal and plastic, cost less than $300, and we’ll see it, alongside an iPhone 5S, this summer.

But does Apple need the budget iPhone to survive? No. It’d be nice for the folks in emerging markets, which are dominated by prepaid, who don’t get the luxury of subsidized smartphones. But Apple’s survival is not contingent on whether or not it makes a cheap phone.

That being said, I will say that I agree with Reitzes’ other statement, that Apple needs to improve its platform. Looking, for the most part, like it did back in 2007, iOS is more than overdue for a makeover. Here’s hoping Apple has cooked up some cool stuff for iOS 7.

What do you think?

  • Share:
  • Follow:
  • CollegiateLad

    Gotta love analysts. Apple is raking in 72% of mobile profits. The remainder is split between Samsung and everyone else.

    I’m a blind fanboy, are you telling me a supposedly objective analyst can’t see this?

    Did I mention 72%?

    • Ernie Marin

      Analyst need to differ from the numbers, after all if they agreed then what’s the point of having them if there’s not going to be another point of view from what the numbers say.

      • CollegiateLad

        Right. When managing my portfolio, disregard the numbers. The smart thing to do is invest my money based on a haunch for the sake of an alternate point of view.

        Lordy.

    • pauleebe

      Brings back the argument, which car is better, Honda or Porsche? Units sold mean nothing, to me the user at least …

    • Tr1pTr0p

      Profits somehow represent relevance? By your logic, Windows computers are substantially better than Macs?

      • CollegiateLad

        Apple trumps Microsoft in profits, too. Do your homework. Of course profits are relevant to a business… Duh!

        Your point is bogus.

      • Tr1pTr0p

        That wasn’t what I was referring to. More than 70% of all the computers on the planet are not Macs, which also means that vast majority of profits don’t go to Apple. Profits don’t represent a better product.

      • CollegiateLad

        Your point is still bogus. Show me where I said profits equate to a better product. I’ll be waiting.

        1) I said 72% of mobile profits
        2) Regardless of Microsoft’s market share, Apple is king of profit share. In fact the iPhone business alone trumps Microsoft’s entire line of products.

      • Tr1pTr0p

        Then what the hell are you trying to prove by pointing out that number?

      • CollegiateLad

        Why the hostility? Can’t we be civil?

        The analyst suggests Apple should be panicking… The numbers point to Apple just having the best quarter ever for a tech company. The analyst is clueless. The numbers don’t lie.

      • Tr1pTr0p

        (That was a sign of frustration, not hostility. Back on topic…) Apple is on top, they stopped innovating few years ago, nobody seems to be “panicking”. Why is that bad? Well… Nokia was on top, they haven’t changed their practices and they also didn’t panic. BlackBerry (RIM) was on top, they haven’t changed their practices and they also didn’t panic. Microsoft (Windows Mobile), Sony Ericsson, and so on and on. They were all considered too big to fail, and people always said how they had nothing to be worried about.

        Look at what happened to them.

        I rest my case.

      • CollegiateLad

        1) Apple hasn’t stopped innovating.
        2) All of those companies were not selling. Apple just sold nearly 50 million iPhones in a single quarter. And made more than any other tech company EVER has. That’s not to say Apple will always be on top… But until they stop having record quarters in units shipped and money earned, there’s nothing to worry about.

      • Tr1pTr0p

        Apple may be having record quarters, but you know who else is recording record preorders, sales and profits? Their competition. All it takes is a look at the devices. The new HTC One with its innovative camera, Samsung with its innovative features built into their Galaxy line of devices, Google’s incredibly affordable and great Nexus line of devices. Please name me features Apple innovated and implemented into their iOS devices in the past 3 years.

      • CollegiateLad

        Lets see:
        1)Hardware
        2)Industrial design
        3)software
        4)usability
        5)retail
        6)economies of scale
        7)best notebooks
        8) best all-in-one
        9)iPad (market was obsessed with net books)
        10)app stores for mobile devices and macs
        11)created a whole new industry for developers to make money
        13)best integration between products
        14)fluidity of OS – dual core outperforms some quad cores
        15)created the retina craze for smart phones and tablets.
        16) apple creates categories. Everyone else builds off what apple starts.

        I’m sure you’re of the persuasion that adding a larger screen or a faster processor Is innovation( or maybe even a stylus). lol

      • Tr1pTr0p

        Apparently, you’re one of those who are fooled into thinking how styluses are completely useless and unnecessary. I said in the past 3 years, but OK.

        1) There is something innovative about Apple’s hardware? Could it be their brilliant implementation of antennas? I still have to be careful how I hold my 4S because it will lose reception if it’s not happy by the way I hold it. Very innovative! Retina, on the other hand is a different story, but it happened 3 years ago.

        2) I’m pretty sure Apple has been outdone by HTC in this field. (HTC One, for example.) Again, nothing truly innovative there. The design of the iPhone 4 was really great, but happened 3 years ago.

        3) I’m pretty sure Apple has been outdone by Google and Samsung on that one. The sheer number of features implemented in Android place it leagues ahead of Apple.

        4) How is that an innovative feature? See point #3.

        5) Finally a good point. HAPPENED 10 YEARS AGO!

        6) On par with Samsung on that one. Still don’t see how that’s an innovation.

        7) That is subjective and completely irrelevant to my question.

        8) See point #7.

        9) Good point. Happened more than 4 YEARS AGO.

        10) Good point again. Happened 5 years ago.

        11) How long ago did that happen? Was it within the past 3 years I asked?

        13) You skipped #12. See point #7 and #11. I have never had someone not-answer my question so fucking poorly.

        14) False, and hardly has anything to do with my question. Almost all quad core Android smartphones easily outperform my 4S.

        15) I see you like repeating yourself. See point #1.

        16) By that you mean do not disturb, lock screen camera access, large displays, 720p and 1080p video recording, and other features that the competition has had for quite some time now?

        I thought this was obvious, but looks like I have to clarify. I specifically asked in the past 3 years. Nokia was an innovator, they changed a lot and implemented a large number of new and useful features. But at one point, the innovation simply stopped. What you mentioned there are all things Apple has done in the past, and almost no features they implemented recently. You can only ride on your old glory for so long. Apple’s time is slowly running out. The competition is catching up really fast, and they need to get back on the innovation horse, asap.

      • Raj

        I hate android and logo. And I love apple logo!!!

    • http://twitter.com/artu165 Arturo Millan

      I’m an Apple fanboy but like TripTrop said is (but better explain in my opinion), is volkswagen better than Ferrari or Lamborghini just because it sales more?

      • CollegiateLad

        Did you not read the article then the context of my comment? The point is Apple is alive and healthy. Not that either company is better. Apple is doing fine regardless of what analysts say.

        Wow.

  • jilex

    i think i will only buy another iPhone if they revamp iOS, if not, i’m fine with my android

    • Ernie Marin

      I’m a Windows 7 user, with an iphone, who would love a galaxy tab, and why?, because no matter who it’s seen by anyone, the fact is that they all complement each other one way or another, and if there was such a war, why would they still be making cross over apps like google maps, microsoft exchange for mail app, and itunes for windows.

  • WatchTheThrone

    Apple will never make a “cheap” iPhone!! Keep dreaming on that one!!

    • faruq

      yap, and if they do, then apple lost its vision

  • GuyBey0ndC00L

    Apple been this way for years. They ignore critics, stareholders, bloggers, analysts and everyone alike. Samsung catching momentum great for Samsung. Apple makes more money on iPhones than Samsung makes on there whole line of products. Lucky Samsung is still one of the best chip makers in the world. Everybody has got some forum of momentum off of Apple. Now people are seeing Hardware Design is also important to go with great software.

    • Kurt

      maybe a repeat of bankrupcy will occur. If apple can’t innovate they will KEEP falling behind. i for one will not buy another crappy iphone. i wish i bought a note and not a grandma usable phone like the iphone

      btw, apple’s software is adequate for these days. it’s no longer considered great. it can’t do much!

      • GuyBey0ndC00L

        Yes it’s true, iOS Definitely needs fresh paint. The latest Jailbreak is giving it new life but still it needs fresh blood. Has far as iPhone “not being useful anymore” your so wrong on so many levels. Developers make more money on iOS vs Android. Matter of fact Google makes more money on iOS vs Android “google it.” iPhone & iPad are the king of web traffic, google it. iPads out selling PC’s of any kind “google that.” Google pays Apple 1 Billion a year to be the default search engine for iOS. Use “google search and ask yourself why would google do that. Bottom line Android is finally making some strong software to go with great hardware that’s amazing. Use what you like. But don’t downplay the Obvious the iDevices are still King. It’s a pleasure ranting with you my friend. I’m a PC, I have a MBP, iPad3, iPhone 5 and use Chrome.

  • Guest

    Ok everyone has been talking about 72% market share, that may be true or debatable, its all about the fine print, but what I am surprised about is the fact that nobody pointed out the inaccuracy of apple’s stock price, which IS NOT $250 a share, but actually $459.99, and yes Google just reached an all time high of $800.00+ almost double of an apple share, its funny to see people bicker about oh android this and IOS that, what it boils down to at the end of the day is, everyone has there preferences and a device that fits there needs or doesn’t, and all I can say is, “I am glad there is not one company to manufacture and sell mobile phones to create a monopoly and a lack of innovation. I feel there needs to be more manufactures and more cell carriers to push company’s above and beyond the consumers expectations!!

    • Melvco

      “bouncing around $250 below its last-September high.”

      The stock’s September high was just over $700. It’s currently bouncing between $440 and $460. 700-250 = 450. I’d say the statement was accurate.

      • Kurt

        exactamente

  • http://www.facebook.com/tafk1 Taf Khan

    Apple don’t care about the low end market share any more than Ferrari or Lamborghini do..

  • http://www.facebook.com/Makavelli.1 Joseph A. Ahmad

    I really don’t think people should expect too much from the iPhone 5S in regards to hardware. I keep telling people again and again, the software is what runs the phone. The user interface is was we look at all day. The iPhone 5 is a pretty sharp looking phone, sure not the absolute largest, but it is pretty sleek. Will Apple need to push a big hardware upgrade with the iPhone 6? Absolutely. But if their focus was purely on hardware, then we’d be stuck on the same iOS 6 for the next year or two. We need a more improved Siri, Maps, FaceTime *OPEN SOURCED* because not all of my friends have iPhones, iPads, iPod Touches, or MacBooks, and mostly importantly, we need something that NO ONE was thinking of. I’m not talking about a Siri-like feature (although fantastic) because there were predictions of that when before the iPhone 4S announcement with Apple dabbling in all of those patents related to voice dictation. I’m talking about a FaceTime-like feature that everyone won’t expect, but will appreciate. I’ll be honest though, in my head, I’m definitely thinking about a newer, sleeker looking iPhone design and I hope it comes sooner rather than later. And trust me, if you’re one of the most successful companies in the world, you have your employees reading idownloadblog, everythingapplepro, macrumors, and macworld amongst others, just scoping out articles, comments and so on. They’re smart, they’ll figure things out.

  • http://twitter.com/unbeliever008 Jae. Just J.

    Stock price vs. current market share are two different things. I agree with the analyst. Being a shareholder, Apple really needs a new product for stock price to challenge the all time high again. Being a “one or 2 trick pony” isn’t going to cut it with analysts. Just look at Blackberry and how fast they fell out of favor.

  • Obsidian71

    Who is Ben and why should I care?