Apple (AAPL) Rival Samsung (SSNLF) Prepares to Introduce New Folding Phone, Monness, Crespi, Hardt Weighs In

Monness, Crespi, Hardt analyst Brian White has weighed in to discuss Apple (NASDAQ: AAPL) as the company’s biggest smartphone rival Samsung (OTC: SSNLF) is hosting a Galaxy Unpacked event entitled “Get Ready to Unfold” this Wednesday.

White argues that Apple has made progress towards increasing its value by introducing new innovations to create a more digital lifestyle and attracting new consumers.

“As the largest smartphone vendor in the world with innovations that have altered the course of the industry, Samsung’s every move is watched very closely by both its competitors and Apple investors. In 2020, IDC estimates Samsung held the top slot in the smartphone world with 20.6% market share based on shipment volumes, followed by Apple in the #2 position at 15.9%, and Huawei in the #3 slot at 14.6%. Given the hardline stance on Huawei by the U.S. Government, the company’s smartphone business has imploded, creating significant opportunities for competitors over the past several quarters, including Apple,” White said in a note sent to clients.

As Samsung is prepared to add more firepower to its foldable portfolio, industry experts are expecting the South Korean giant to unveil the Galaxy Z Fold 3, Galaxy Z Flip 3, and other innovations on Wednesday.

“Samsung introduced the 7.3-inch Galaxy Fold at an Unpacked event on February 20, 2019, and announced orders would begin on April 26 at a starting price of $1,980; however, screen-related issues delayed initial availability until September of that year. Introducing a smartphone that seamlessly morphed into a tablet was a true innovation in the smartphone industry and certain competitors have since followed suit,” White added.

“Although Samsung has been a pioneer in introducing hardware-related, smartphone innovations, we believe Apple’s ability to develop hardware, software, and services that seamlessly work together has created a magical iPhone experience that remains unmatched in the industry.

Media outlets also reported that Apple is developing a foldable iPhone but that could be years away from the launch. In the near term, White looks forward to the iPhone 13 launch expected for this fall.

“Given the benefit of an unconventional iPhone cycle and Huawei’s downfall, we estimate FY:21 iPhone growth will outpace trends in recent years; however, we believe this level of growth is not sustainable in FY:22,” the analyst concludes.

White rates Apple with a “Buy” rating and $184.00 per share price target.

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