Originally Posted by SolipsismX
1) Everyone on this thread understands that Samsung is successful, but you're ignoring the basis of the article that notes the same author referring to slower pace as successful and a faster rate as unsuccessful.
Originally Posted by dasanman69
It's all about expectations. Derek Jeter comes up to bat and he's expected to hit a single or a double but if ARod is up to bat a homerun is expected.
Not the worst analogy. Suppose ARod had a history of hitting home runs regularly. Suppose Jeter was known for reliably hitting singles. Based on expectations the Yankees decide to pay ARod 30mil a year and Jeter 15mil.
Now the season gets underway and reality plays out a little different than expectations- ARod is reliably hitting triples, with the occasional home run. Jeter surprises everyone by hitting doubles reliably with the occasional triple thrown in. Despite still outhitting Jeter, ARod gets some bad press. Jeter gets some glowing press reviews.
Next season comes around and they negotiate contracts. ARod is offered 25mil and Jeter is offered 18mil.....
An ARod fan might cry fowl. ARod is playing *better* than Jeter but they are disappointed in him and giving him a pay cut, and yet reporters are gushing over Jeters performance and the Yankees are giving him a raise!! How dumb is that?!
At its peak Apples $650 bil plus market cap was based on it completely crushing everything (hitting repeated home runs). At that time I believe Samsung Electronics was somewhere above the $100-125 bil valuation. So Apple was valued around 6 times more than Samsung.
Apple did 'worse than expected.' Samsung did 'better than expected.' Apple still has the better sales and profits- but no longer so much so that they are worth 6 times as much. Based on this seasons contract negotiations Apple got a 'pay cut' and is valued at @ $400billion. Samsung electronics got a 'raise' and is currently valued @ $170 billion.
Apple is still valued at somewhere between 2x to 3x Samsung electronics.
The iPhone 5s will mark the next inning. It *has* to be the best selling phone and certainly exceed the S4's sales. If it does not, there will no longer be a justification for Apple to be valued at 2-3x Samsung. If it surprises everyone and people flock en masse to it ditching their Android phones and knocking down store walls to get at it- then maybe Apple will go back to being worth 6x Samsung.