Apple`s second quarter revenues are going to drop off a cliff, and given that 75% of Apple revenues comes from selling smartphones, the current gap between Samsung`s latest offering and Apple`s latest I-Phone is the biggest it has ever been. Moreover, as we have seen from past smartphone sales, when Samsung clearly had the best smartphone on the market, consumers had no problem switching brands if the choice in the market was clear cut as to who had the best smartphone.

Apple Vs Samsung AAPL

Apple Vs Samsung AAPL

FirmBee / Pixabay

And this is a no brainer choice for consumers, the Apple I-Phone actually looks old, antiquated and dated. It all comes down to competition, and Apple Inc (NASDAQ:AAPL) analysts should consider what Samsung is doing in the High End Smartphone Market into any thorough going analysis, companies don`t operate in a vacuum.

Consumers will either wait 7 months for the next I-Phone, or buy the Samsung Galaxy S8, either way this is bad for AAPL earnings outlook over the next two earning`s reports, given the importance of forward guidance.

And the second quarter Apple earnings will be brutal to say the least, this may be the worst AAPL earning`s quarter in over 5 years in my opinion. Investors are going to be shocked how bad second quarter earnings come in as there is no reason whatsoever to buy an Apple I-Phone or Apple`s stock over the next 7 months!