Question

Accounting issues? As result, Apple evaluation decreased drastically. BlackRock valuated that only 7.6% of Apple's balance sheet is composed of productive assets. The market is rewriting Apples value indicating that this company is not as valuable as previously thought. If this trend continues to increase, Apple's profitability will drastically decrease.

How does this accounting issues affect Samsung? or did Samsung have any response on this accounting issue?

Answer 1

Dear Sir / Mam,

As far as my knowledge is concern, This is the situation where the samsung or other emerging competitors needs to get advantage over and above.

As you said above that as per blackrock valuation onl 7.6 % of apples balance sheet is composed of productive assets,'

This can be advantage for many other emerging competitors such as samsung and soo other as such.

If the trend increase then the value / profitability of the company will goes down automatically.same customers turnaround rate will go high and the taste and preferences of customers will tend to be move on to another company.

This accounting issue affects samsumg in better way to get penetrate into markets by improving and getting new features in their products and a bit of promotions increase their share and convert the apple customers into their bags

I hope my answer is helpful and valuable, I will be happy if you give me nice credit and comment.

A heartful thankyou for your interesting question.