After beginning 2019 on a terrible note, Apple (AAPL) stock has witnessed a solid recovery so far this year. On the first trading day of the year, the company’s CEO, Tim Cook, cut its first-quarter guidance, citing deteriorating iPhone sales, especially in the Chinese market.
Apple’s rich history of innovative products has helped the company regain investors’ confidence, as it’s still trying to revive its iPhone sales. However, Apple might find it difficult to compete with Samsung’s (SSNLF) new Galaxy Fold smartphone, which was unveiled yesterday. Let’s find out why.
Samsung Galaxy S10 phones
On Wednesday, Samsung unveiled the much-awaited Galaxy Fold smartphone along with a range of Samsung Galaxy S10 phones. Samsung claims that its Galaxy Fold is the world’s first smartphone with a 7.3-inch Infinity Flex Display that can be folded and made compact.
While the user verdict on the Galaxy Fold is still out, its foldable display feature could certainly make it stand out in the crowded and highly competitive smartphone market.
Goldman Sachs’ warnings to Apple
The analyst, in a research note to clients, said, “Should that form factor spark consumer interest we would expect Samsung to delay access to the technology for Apple. We see this as a potential problem for Apple this year though the lack of a device at this point drives us to reserve judgment.”
Today at 10:19 AM EST, Apple stock was down 0.6% against the 0.5% loss in the S&P 500 Index. In comparison, other tech companies IBM (IBM), Alphabet (GOOG), NVIDIA (NVDA), Qualcomm (QCOM), Intel (INTC), Facebook (FB), Netflix (NFLX), Amazon (AMZN), and Micron (MU) were trading with losses of 0.2%, 1.8%, 1.1%, 0.4%, 0.1%, 1.7%, 1.3%, 0.9%, and 0.8%, respectively. In contrast, HP Inc. (HPQ), Microsoft (MSFT), and Advanced Micro Devices (AMD) were trading with minor gains of 0.7%, 0.4%, and 0.5%, respectively.