Apple May Be Past Its Best: Nicholson

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Jan. 07 (Bloomberg) -- Christopher Nicholson, Director and Lead Equity Analyst at Oraca, discusses highlights coming out of the Consumer Electronics Show in Las Vegas, and headwinds facing both Apple and Samsung. He speaks on Bloomberg Television's “The Pulse.” (Source: Bloomberg)

I think that is a big area.

One angle we like on that is wearable devices incorporated into clothing.

Iwatch is very interesting.

We could see how that could be a potential market winner.

We like be 3-d print -- we like the 3-d printing.

Whether or not it has a true retail market is a different issue.

On the nano tech side, we like anything that is health care related.

Also, new materials.

We are key on -- we are keen on things like graphics and processes like that.

The areas we think it is particularly interesting in technical clothing for sports would be the retail market and before that you're talking about professional clothing for certain types of jobs.

You put solar into clothing where and this allows people on specialist jobs to have a secondary power source.

That could be popular for sporting activities.

There are ways into the market.

Where is it practical, where would it attract an audience?

The health care side is a natural place for to go as well.

Who was going to be the winner from this process?

The bunnies are investing a great deal of money -- companies are investing a great deal of money, but how the tech is going to impact our lives in the health-care sector, is it possible to deduce who is going to be the winner or winners in the sense of space?

I think it's impossible to tell at this point.

Based on the way technology is generally developed, it is a difficult one to get right.

You are better off taking a broad view and saying these are the main players who have -- we don't know if it is going to be samsung or apple.

His companies are going to be investing money into the space.

Are there any clues?

You are probably better going for start all -- start up then main players.

You can go out of fashion and you can get it wrong.

Someone else comes up with a certain amount of capital and they come up with the ip on a product that everyone realizes how they can use it.

At this stage, it is early to say, but you cannot ignore the big players.

It is about patents and who has them.

That will be important.

Who has them?

Who are your favorite companies?

We talked about samsung, blackberry, anything that you like?

I think pebble is a very interesting thing.

We think apple may have been passed its best now.

The samsung numbers indicate the upward trend is perhaps over.

That doesn't mean they cannot come back.

These two companies have dominated the smartphone market.

It is something that has grown enormously over the last decade.

We have taking -- taken it to its limits, and a software evolution is next.

You wonder if the same companies that dominated the previous 10 years are going to be the ones to dominate the next 10 years.

Statistically, you have to say no.

Samsung is facing the following pressures -- first of all, there's not that much growth left in the european markets and in the u.s. that is where smartphones were purchased and growth was.

You have people coming onto the market with a sub $20 phone.

This completely squeezes samsung out.

Samsung and htc are facing the same problems.

They're being squeezed out at the bottom end.

There's not much growth at the top end.

Where they got the higher margins come if they want to sell smartphones into the likes of india, pakistan, etc., they're going to have to come down on the price point.

They are not going to be able to deliver the margins.

We're doing the flip now.

Another statistic is 7 billion uses on phones by the end of 2016, maybe 3.5 billion are smartphones at that point.

I know a lot of people are saying they will all be on smartphones.

We don't see it that way.

We see 2019, maybe.

Prior to that, the market is basically saturated.

Thank you for that.

Christopher nicholson there.

We're going to take a break.

You can follow us on twitter.

We will see a couple of minutes.


This text has been automatically generated. It may not be 100% accurate.


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