The trajectories of the share prices in the chart below certainly demonstrate that point with Samsung rising and Research in Motion on a significant downwards slope.
The recent earnings of Samsung demonstrate a clear superiority over Research in Motion. The company’s operating profit has increased over 9% from the December quarter. Smartphone sales are strong, increasing from 36 million to 44 million over the quarter. New Samsung phones and tablets will continue its earnings growth in 2012. Samsung even owns the low end of the market, with the best smartphone for under $100.
Contrarians aside, Samsung isn’t just winning shareholders from Research in Motion. Customers are shifting to Samsung products in a major way.
It’s also telling that RIMM is for sale but can’t find any buyers, while Samsung’s recent bond offering was snapped up at a yield lower than investors pay for South Korean Government debt.