NEW YORK (AP) —
Shares of Apple Inc. climbed Friday after its chief competitor, Samsung
Electronics Co., revealed a new top-of-the-line smartphone model.
THE SPARK: Late
Thursday, Samsung revealed the Galaxy S 4 at an event in New York. It features
a slightly larger screen in a slightly smaller body than predecessor S III and
includes several new ways of controlling the phone without touching it. The
global roll-out will start at the end of April. The four largest U.S. cell
phone carriers have committed to selling it in, in addition to two smaller
ones.
THE ANALYSIS:
Most analysts see the S 4 as an incremental advance for Samsung, but not a
game-changer that's likely to deal a big blow to Apple. The main weakness of
the iPhone 5 is that it has a small screen relative to high-end Android phones;
the S 4 is 56 percent larger.
"Aside from
the large screen size, which we believe gives Samsung a large advantage over
Apple, we believe many of the features can easily be replicated," wrote
Peter Misek at Jefferies & Co.
Abhey Lamba of
Mizuho Securities suggested that the launch of a competitive new device from
Samsung could actually be good for Apple shareholders. Apple is already under
pressure to use its enormous cash hoard for the benefit of shareholders, and a
large stock buyback would help signal that it's confident in its own business,
even as competition is increasing in the smartphone market.
Apple shares
have fallen 39 percent since their all-time high of $705.07 in September,
mainly because the company's growth rate has slowed. More recently, the shares
have been pressured by reports of pullbacks in iPhone manufacturing due to
slackening demand.
SHARE ACTION:
Apple shares rose $7.99, or nearly 2 percent, to $440.49 in midday trading. The
day's high of $442.50 was the highest point the stock reached in two weeks.
[Source]
You can follow me on Twitter, add me to your circles on Google+ or Subscribe to me on facebook or YouTube. You can also check my website and blog to keep yourself updated with what is
happening in the ever changing world of technology
No comments:
Post a Comment