Saturday, August 25, 2012

Apple Triumphs over Samsung

And so, the news for world's most valuable company by market capitalisation just keep getting better! Good news after good news despite a small blip in its last quarter earnings has been continuing on and on for the last decade. Today, Apple has been awarded US$1 billion in lawsuit damages by the Federal court in Califonia state in a landmark suit against Samsung for breach of propietary rights. (Link here: http://www.bbc.com/news/technology-19377261)

What does this mean to investors like you and me in Singapore?

In short, for us investors, this bodes well for Apple on the short run and on the long run. Buy Apple.
  • Validation of competitive advantage + product differentiation
    • Both are key valuation metrics to top IBs to evaluate company proposition and investment potential over competitors
    • More black and white reason for price target upgrades.
    • More reasons for overweighting in portfolio
  • Gives its R&D department another 1-2 years of time to really deliver more innovation for new products in an otherwise saturated environment where smartphones are all pretty much similar.
  • Financial power increases yet again
    • Again the cash kitty swells, enough said.
    • More chances of another special dividend

And for us you and I as general phone users, it just means even wider range of products to choose from rather than the similar looking phones that have been populating the market. Cheers!




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