Apple's iPhone 6 Will Attack Samsung: Blair

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April 29 (Bloomberg) -- Rosenblatt Securities Managing Director Brian Blair discusses his outlook for Apple and the iPhone 6 on Bloomberg Television's “Bloomberg West.” (Source: Bloomberg)

Business in five quarters.

Cory johnson joins me and also brian blair on the phone.

Is the saturation or competition?

I think it is a little bit of both.

We have seen things slowing down at the high end of the smartphone market.

There definitely is a competitive element because especially in places like greater china and asia you see players really coming in strong right now at the low end.

I think they are getting hit on both sides.

One number really surprised me, how much samsung counts on mobile for revenue, like 76% of sale?

That is right.

From a sales basis, 54,000,000,000,001 and 32 of that came from mobile.

This is the engine driving samsung.

The other areas have been week.

Samsung numbers did pretty well.

The bulk of the business really does come from mobile.

Right now there are signs of weakness.

You would have thought this company had a strong position in the business.

What do you think were the weaknesses?

A couple of things we have seen.

One thing going on right now, shortages in china.

A lot of smart phones being made anticipating the buildout of the four g network in china.

-- 4g network.

There have been and balances and a lot of overall demand.

Samsung doesn't expect that to grow faster than the rest of the market.

It may be attributed to the force4g handset sales.

Apple numbers on the other hand were surprisingly good.

What is apple doing right or better than samsung at this time?

Price points are very similar.

Lex samsung is attacking all tiers of the market.

The highest and galaxy s5 line.

They go all the way down to the 500 price point retail.

They are mainly focused on the higher end.

Keeping the older iphone to attack the midsection.

Apple focused on the high end right now.

That is not something -- samsung and apple was taking very different approaches.

What is going to be critical is when they come out with the iphone six.

They do a larger screen.

That is going to really attack samsung at the high end.

I was really struck the cash number here.

60 billion in cash is a very apple-like number.

They have a big plan to return it to shareholders.

What do you make of that?

They spend a lot of money on marketing.

This is where the bulk of the money is spent.

And it is spent well.

Just the big presence and advertising is where their money goes.

They have said they will be returning the cash to shareholders.

I think apple has set a precedence with the last quarterly report where they are increasing the size of the buyback in giving more to investors.

I think samsung will be forced to follow.

I think global investors will have a similar expect patient for use of cash, particularly

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


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