It’s Friday! Time to breeze through a short breakdown of some of the week’s hottest tech trends.
Remember to cast your vote in the survey at the end. Not only does this let us know which story has you tuned in most, but you’ll also get to see what other Wall Street Daily readers are into.
Now on to this week’s topics
Tech Trend #1: Samsung Ousts Apple
There’s no question that the story that got the most attention this week was Apple’s (Nasdaq: AAPL) earnings. The company missed estimates (something it rarely does), which has pushed investors to sell off shares.
Louis Basenese mentioned yesterday that Apple’s stock price might not head higher any time soon, either.
One reason is that Apple is a two-hit wonder. As Louis said, “iPhone and iPad sales now account for 72% of revenue, up from 65% last quarter. So the only way for its stock to keep climbing… is for Apple to keep introducing new product categories. Then it must instantly dominate those new markets.”
Louis then quoted North Shore Asset Management’s Michael Obuchowski to back up his point: “Pressure is mounting… Because everybody else has a much faster design cycle, Apple has to come up with a new phone that’s competitive not just when it comes out, but will stay competitive for a long period of time. That’s going to be increasingly difficult.”
Well, Samsung (LON: BC94) is proving just how difficult competing against this aggressive design cycle can be. A new report from Strategy Analytics indicates that Samsung shipped 50.5 million smartphones in the last quarter and now claims 34.6% of the market. Apple, on the other hand, sold 26 million iPhones – or about half as much as Samsung – and has 17.8% marketshare.
True, looking at shipments versus actual sales isn’t exactly a perfect comparison. But as Business Insider’s Seth Fiegerman says, “The data does suggest that demand for Samsung’s phones is well ahead of Apple’s right now.” And it’s a situation that Apple’s likely not going to find its way out of any time soon.
Tech Trend #2: Nintendo 3DS Sales (Unsurprisingly) Disappoint
Over a year ago, I discussed why Nintendo’s (PINK: NTDOY) handheld 3DS device – which was experiencing slower-than-expected sales at the time – would continue to disappoint. Well, it turns out I was right.
The company reported a loss of almost $1 billion thanks in part to disappointing 3DS sales. Granted, much of the loss can be attributed to foreign exchange rates. But as PC Magazine says, “Nintendo has… struggled to gain interest in the 3DS, even after slashing the price to $170 from $250 just four months after its release.”
Let’s see if the Wii U can pick up the slack.
Tech Trend #3: Google TV Service is Here
Back in February, I expressed my excitement over the possibility of a Google (Nasdaq: GOOG) TV service attached to is fiber-optic rollout in Kansas City. I was hoping Google would (finally) introduce an a la cart TV service that lets you pay for only the channels you want – something that would certainly make pay-TV companies shake in fear.
Wall Street Daily readers couldn’t agree more. Like Allan, who said, “I wish it was happening tomorrow. The stranglehold the cable providers have enjoyed as local monopolies will finally be over. I hope we get access to every digital TV station in the world. Leave it to Google to continually find ways to take it to the next level.”
Well, Google has finally announced pricing plans for its TV and internet service. And sadly, a la carte isn’t happening. (Yet.)
However, along with Google’s paid plans – which include internet that’s 100 times faster than current speeds – it’s also offering a free internet plan that matches the speeds you’re likely getting at your house now. Sure, it includes a one-time cost of $300 to get started. But considering how much cash this could save you (the service is guaranteed for seven years), I don’t see anyone having beef with that initial cost.
So cable companies shouldn’t relax just yet.
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That’s all for today. Have a great weekend!