Samsung Last Song? - The Apple Bites Back!

Whereas Apple's only blame regarding its Friday decline is for being the biggest company in a market overrun by the herd, its Thursday's apple basket spill is its own doing, and by choice.

While the iPhone 7 has some cool new features, such as water/dust proof, new colors, faster processor and better camera, it has the same exterior. Every 2 years Apple redesigned the iPhone's exterior, giving it an updated, cool look. Apple has a status symbol, and people want to show everyone that they are cool and current. But if the iPhone has the same exterior as the iPhone 6 and no one can tell the difference, investors are concerned that iPhone fanatics won't think the upgrade is worth the cost. They might as well wait for iPhone's 10th anniversary, with the iPhone 8 launch, which is expected to revolutionize the iPhone. They'll just wait another year. This is why initial interest in the iPhone 7 are low. That is likelly the real story behind Apple's breaking away from their tradition of providing iPhone pre-order sales. They announced they won't provide that, even though they must have known investors will react with suspicion and distrusts. Just how bad are there sales, that they prefer to let investors imagination run wild but not provide the actual numbers?

Let's see what that looks like on Apple's daily chart:

You see the last 2 days' decline? See the size of those candles, compared to other candles in the vicinity? How you like them apples? Bet you wouldn't want to meet them in a dark alley at night. They don't look friendly. No, Sir!

Now, let's look at another chart. This is Apple's arch rival Samsung's Daily chart.

Apple asks: "How you like me now?!" See that size of that downside gap? That looks as painful as a root canal. How does the Apple chart look now? If these were the only two girls in the party, who'd you ask for a dance?

Samsung shares yesterday reached their lowest point in two months and $14.3 billion of market capitalization has vanished. The shares were off 6.3% on the day and were trading at the equivalent of $1,321.02, the lowest that the stock has been at since July 12th.

To appreciate how bad things are for Samsung - 2 weeks ago, Samsung hit an all-time-high, with the release of the Note 7 that beat the iPhone launch.

But Samsung acted prematurely. It wasn't ready. They were still in the product-testing stage - and even knew of the exploding batteries - and still shipped them.

Samsung recalled 2.5 million phones last week. Now, Samsung released a warning announcement not to use the phone.

The US Federal Aviation warns passengers not to switch on or charge the phone while on board or even pack it into any checked-in luggage. Some airlines banned the device from coming on board, altogether!

Samsung calls the financial impact as "heartbreaking."

  • $1.5 billion - cost of recalling, revising and re-launching a new, safe, version of the Note 7.
  • Law suits - Can't even estimate that
  • Loss of reputation - priceless
  • Up to $5 billion in revenue lost to Apple's iPhone 7!

How would you feel if you paid your hard-earned money to buy a brand new, expensive phone that you were told you can't even use? Suddenly, you're stuck without a phone, which in today's age it's like being disabled - blind, deaf and dumb. You're inside a box, without the ability to see, hear or speak.

Would you trust Samsung products in the future? They sold you a dangerous device. They rushed to launch it, before they were ready, out of greed, to beat Apple to the punch. They sold it to you, even after they already knew that some of the batteries explode. They took a chance, with you.

How do you think this might affect the iPhone 7 sales?

There are reports on the internet that  suddenly Apple hikes orders of iPhone 7 parts, despite initial low sales. Apple always make sure to limit production, so the iPhone quickly gets sold out, using the same technique of Rolex. So, that the iPhone be considered the Rolex of phones. So, if they always limit production, when initial sales are high, whey are they now increasing production when initial sales are low. Remember, that this is the first time that Apple isn't willing to share the iPhone pre-orders. That sent the stock down. So, suddenly increasing production makes no sense, unless they know that Samsung customers will be coming their way to find shelter from the fires of the Note 7.

If you're still not convinced, take a look at the following picture:

How do you think you'd feel if this happened to you? Imagine if you were sleeping and this was next to your bed?

How do you like them Apples now?


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