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Jobs' death hurts Apple

posted 6 Oct 2011, 03:19 by Mpelembe Admin   [ updated 6 Oct 2011, 03:20 ]

Steve Jobs' death a huge loss for Apple, says Sanford and Bernstein, on top of the lacklustre response to Apple's iPhone 4S.

ASIA-BUSINESSASIA - The death of Steve Jobs is a big loss for Apple.

It also follows the lukewarm reception to its latest iPhone.

Mark Newman is from Sanford and Bernstein.


SANFORD BERNSTEIN SENIOR ANALYST, MARK NEWMAN, SAYING:

"They're coming under increasing attack by companies especially Samsung. Especially at the low-end, as well as the high-end. And I think without Steve Jobs, this is going to get worse for them to fend off."

Shares in Samsung jumped over four percent, adding to Wednesday's 1.7 percent rise. Other Apple rivals like LG Electronics, and Taiwan's HTC also soared in Asian trading Thursday (October 6).

This was in part on a U.S. technology rally, but also because Apple's loss of its creative driving force is seen as expanding their window of opportunity to claw back some market share.

Newman says Samsung has the most to gain, with HTC also potentially benefiting.


SANFORD BERNSTEIN SENIOR ANALYST, MARK NEWMAN, SAYING:

"Samsung is much closer to Apple in market share for smartphones, but HTC will be the next one. I think it will take a while though for Apple to fall behind HTC, if they ever do, because I think Apple's lead is still quite considerable over HTC. But over Samsung, they're pretty much neck-and-neck now."

Samsung provides earnings guidance on Friday (October 7), with Asia's largest technology firm seen pulling ahead in terms of absolute smartphone sales in the July to September quarter.

Newman is not ready to pull down the curtains on Apple just yet though.


SANFORD BERNSTEIN SENIOR ANALYST, MARK NEWMAN, SAYING:

"Well I'm not going to say it's the end of Apple's innovation, I believe they'll continue. They have many many great people there, but I am concerned about long-term innovation waning."


Voice commands in the new iPhone 4S for sending messages, making appointments and reminders caught the attention of many analysts, but may not be enough to make it a must-have for consumers.

Intense competition in the smartphone space has seen Apple and Samsung suing each other across multiple continents, a phenomenon which may not let up.


SANFORD BERNSTEIN SENIOR ANALYST, MARK NEWMAN, SAYING:

"Steve Jobs has had a very close relationship with Samsung management. And I don't think Tim Cook has such a relationship, so it is possible that the aggressiveness maintains like this."


Samsung made the latest legal move on Wednesday, saying it will move to block sales of the iPhone 4S in France and Italy.


Arnold Gay, Reuters.

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