Apple and Samsung: Who's Hurt More by the White Label Onslaught?

If one thing was clear at this year's big Consumer Electronics Show in Las Vegas, it was that "white label" Chinese manufacturers have pulled out all the stops when it comes to offering phones and tablets at ultra-low price points. Apple (NASDAQ: AAPL  ) seems to have something of a defense against this low-end assault, but what about Android hardware makers such as Samsung and Nokia (NYSE: NOK  ) ?

Foolish tech analysts Evan Niu and Rex Moore have seen it all firsthand at CES, and discuss the issues straight from the exhibit floor. In this video, Evan explains Apple's defense, but says some manufacturers will have to slash margins in order to keep up.

A full transcript follows the video.

This is where investors need to look
Want to get in on the smartphone phenomenon? Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits NO MATTER WHO ultimately wins the smartphone war. To find out what it is, click here to access the "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further..."

Rex Moore: We are wrapping up things here at the 2014 International CES. It is my pleasure to be joined by Motley Fool Technology Bureau Chief Evan Niu. Evan, you've walked around -- your feet are tired! -- for several days now. A lot of stuff going on with phones and tablets.

Evan Niu: Yes, there is a crazy amount of phones and tablets. One thing that I've definitely noticed is that it's kind of an onslaught of phones, from all of these white-label Chinese manufacturers, that are coming out on the market. Basically, they're going to blast the market out with volume, just tons of stuff.

I think the most important thing here is that a lot of these devices are pretty solid devices. They're going to be low price points, but they're going to put pressure on some of the bigger players, from a hardware perspective.

If we look at some of the hardware-centric companies, how are they going to defend against this onslaught?

Moore: Which companies?

Niu: Like Samsung, Motorola; mostly on the Android side, because Android is a little bit more commoditized on the hardware level, whereas Apple  (NASDAQ: AAPL  ) plays more of an integrated game, so it has a little bit more of a defense strategy.

But the Motorolas, the Nokias; all these Chinese manufacturers are coming in from the bottom, and they're going to put a lot of pressure on pricing and margins. I'm going to see how they respond.


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 08, 2014, at 9:36 PM, wwu12345 wrote:

    Form yoru first paragraph: what about Android hardware makers such as Samsung and Nokia (NYSE: NOK ) ?

    Are you sure, Nokia is an Android hardware maker?

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2828914, ~/Articles/ArticleHandler.aspx, 9/1/2014 2:51:45 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement