Apple Inc. (NASDAQ:AAPL) to Attack Samsung7-22-2016
Apple Inc. (NASDAQ:AAPL) has found itself in the unenviable position of seeing revenue and net income shrink for the first time since it was on the brink of bankruptcy over a decade ago. But it does have one interesting competitive power over its rival Samsung, and Apple Inc. has just attacked.
While Apple Inc. and Samsung attack each other in the smartphone world with the iPhone and the Galaxy franchises, what is lesser known is that Samsung is in fact a powerful semi-conductor company. Samsung is so powerful, that it has been building the Apple Inc. "A-chip" for years -- the very chip that powers the Apple iPhone.
With competition heating up in the smartphone realm, that once friendly relationship between Apple Inc. and Samsung has turned sour, or better said, Apple has simply gone on the attack.
APPLE LOOKS TO WEAKEN SAMSUNG
The easiest way for Apple Inc. to attack Samsung is to take a large piece of revenue away from the firm without dealing in the smartphone realm and that's exactly what Apple has done. While Apple had been splitting the production for its A chips between Taiwan Semiconductor Mfg. Co. Ltd. (ADR)(NYSE:TSM) and Samsung for years, we just found out that Apple has gone to a single source for the iPhone 7 and the iPhone 8. In English, Apple Inc. attacks Samsung by taking all of its business away and going solely with TSM.
As Forbes so aptly points out:
By virtue of pulling its A chip from Samsung, Apple Inc. has put more pressure on the Galaxy franchise. Make no mistake, the A chip was a large revenue producer for Samsung and in one fell swoop, it's all gone.
In the strange world of technology and "coopetition," Apple Inc. (NASDAQ:AAPL) has just gone on the attack and Taiwan Semiconductor Mfg. Co. Ltd. (ADR)(NYSE:TSM) gets the win.
WHY THIS MATTERS
The smartphone revolution has not ended, in fact, it's just beginning. But the handset makers are not the winners, it's the companies that make the chips inside them that will win. Whether it's the revolutionary chip that allows for mobile payments, or the chip that allows for enhanced radio frequency (referred to as 3G and 4G), these are the stocks we must know.
It's identifying trends and companies like this that allows us to find the 'next Apple' or the 'next Google.' This is what CML Pro does. Our research sits side-by-side with Goldman Sachs, Morgan Stanley and the rest on professional terminals, but we are the anti-institution and break the information advantage the top .1% have.
Each company in our 'Top Picks' is the single winner in an exploding thematic shift like artificial intelligence, Internet of Things, drones, biotech and more. In fact, here are just two of the trends that will radically affect the future that we are ahead of:
That chart plots the growth in 4G usages worldwide and how it will grow from 330 million people today to nearly 2 billion in five years. This is the lifeblood fueling every IoT and mobile device on the planet and CML Pro has named the single winner that will power this transformation. Then there's cyber security:
Market correction or not, recession or not, the growth in this area is a near certainty, even if projections come down, this is happening. CML Pro has named the single best cyber security stock to benefit from this theme.
These are just two of the themes we have identified and this is just one of the fantastic reports CML Pro members get along with all the visual tools, the precious few thematic top picks for 2016, research dossiers and alerts. For a limited time we are offering CML Pro at a 90% discount for $10/mo. with a lifetime guaranteed rate. Join Us: Get the most advanced premium research delivered to your inbox along with access to visual tools and data that until now has only been made available to the top 1%.