Samsung Outlook Fuels Galaxy S4 Worries

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July 5 (Bloomberg) -- Bloomberg Contributing Editor Paul Kedrosky discusses Samsung Galaxy S4 sales with Jon Erlichman on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

All, what do you make of these numbers?

Cori basically telling us and you've two storylines here.

Strong financial results and then on the other side a concerned market.

I think that is true.

Although i think that is more samsung specific.

There may be more storylines.

What you bring htc into.

At htc it is less about strong financials and more about a company and incredible disarray and going with the management of people come a product issues.

Lots of branding and stuff happening.

And a lot self-inflicted.

This is a story of a company that have the bull by the horns in the early days of the smartphone market and all of a sudden found itself completely without a bran and has to fight the rearguard action against samsung.

Samsung, on the other hand, has taken the, let's carpet bomb the smartphone world in every single segment with the device.

At comes with its own perils.

I think you see a little bit of that in the current quarter.

S4 has done well.

Not as well as cory pointed out.

Some of that because samsung has confused the marketplace.

We set this back when he s4 launch.

What was so distinctive and unusual?

It is not why an s3 owner would need to upgrade or why it would bring me from another platform.

I think in a sense of samsung has confused and frozen the market in little bit.

I am much less of a believer that it is about saturation of the smartphone market, and this is very of many specific, and different in the case of htc and samsung, but a case of where the mishap -- where the missteps.

Is there a need of a broader strategy shifts, whether apple or samsung or htc saying it will get tougher and tougher to sell a high-end phone because people who just bought a high-end model are going to be tougher cells in the next six months or 12 months.

We have really got to focus on that segment of the market where we might lose a huge amount of market share.

Thinking of markets like china.

I think there is no question.

That is why you are going to see a lower-priced product from apple this fall and why you are seeing talk about lower-priced products from htc coming sometime later this summer, or early enough fall.

Similar noise out of samsung.

All are petrified they will get their lunch eaten for them come especially emerging markets like china that are not really emerging anymore.

They are worried they will be cannibalized from the bottom up.

You will see a lot of focus on that and the cadillac high-end, iphone is bigger, smarter, brighter than yours.

That will be the focus of sort of the next two quarters from all of these guys.

The point still stands, htc really has no brand -- reputation anymore with respect to consumers.

Yet another provider of a phone, no different than any other.

Samsung, by carpet bombing the landscape, has confused people about what is new.

Is this really different or is it like mattresses where they are all actually the same but you just keep changing the model number?

You keep coming back to htc and samsung and the company specific issues.

Does what happened over the last 24 hours late to apple's advantage?

The company that was taking a beating in the stock market even though putting up strong numbers, and we are having the same conversation about apple all the time.

We were talking a couple of weeks back.

I think apple is set up for a monstrous q1 next calendar year because of his back ended with products -- they will have a cheaper product coming out early fall and then you will probably see a larger screen version of the current iphone come out say and early next year.

Book ending the marketplace and doing it in a way that does not confuse people the way htc and samsung have by launching this married explosion of product across so many segments leaving people wondering whether there is something to upgrade to.

There will be no confusion of whether -- what you are rating to her buying a term of apple's releases later this year.

That type of strategy will pay huge dividends for apple over the tail end of this year and early next year.

Just a quick apple follow-up.

Do you think it takes pressure off of apple to unveil the next big thing or things that they have been working on because there is still a lot of room to run in this smartphone world?

Absolutely.

Look at the numbers.

26% penetration worldwide, 60% penetration in the u.s.. this game is far from over.

The discussion of some how about majority is completely wrongheaded.

It is about htc and samsung and widely self-inflicted.

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

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