With all the doom and gloom we have been hearing about Samsung, it’s time for a little good news. Jefferies & Co.’s Sundeep Bajiker is saying that this will be the “Year of Samsung” and it’s time to buy more shares.
He also says they will provide “The High-End Cure for Xiaomi,” who has taken a huge chunk out of Samsung’s share in China. Speaking of China, yesterday’s numbers show Apple as being an even bigger threat, but Bajikar thinks Samsung is a better investment than Apple.
Bajiker believes that Samsung has the edge with flexible displays and their own Exynos processor with 14nm technology. Both of these features will elevate the high end offering. However, the middle of the road is where the real competition is at present and the use of metal will help Samsung, which is something Xiaomi won’t be able to match.
I just don’t think flexible displays will be enough to boost Samsung, at least in the short term. Consumers don’t seem to care too much about it, and as to Exynos processors, mainstream consumers also don’t seem to care about that either. Of course the move to Exynos processors will help Samsung’s profitability, but not market share. Profitability might be more important to investors, but they do look at market share growth as well.
Bajiker has a hold rating on Apple, which seems crazy when you consider the numbers they showed last quarter. That was all because they finally launched larger iPhones, which brought record sales. Now the question is what can Apple do for an encore? It’s going to come down to innovation because going larger isn’t going to do it anymore. They already used up that card. Is flexible displays that “innovation?” If it is, Samsung seems to have the edge. No pun intended.
source: Barrons
Come comment on this article: 2015 will be the ‘Year of Samsung’ according to one Jefferies analyst
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