"Hardware IS Dead" Thesis Has Now Torn Through All Handset Providers & Now Everyone Can Act On It

Reggie Middleton's picture

called the Apple short before it became vogue! I called the Blackberry short beforethey became the industry whipping boy! I warned about Nokia and made clear that Samsung Will Be Ready To Do That Fruit Thing! How'd I know all of this? It's quite simple, I explained it all in 2012 - Smartphone Hardware Manufacturers Are Dead. Well, now the chickens continue to come home to roost, aper CNBC:

In order to deal with such pressures, Samsung appears to be pricing the Galaxy S5 lower than its predecessor S4, according to Kang, who has collected pre-order prices for the device from around the world.

"It reflects the trend of smart phone commoditization – Samsung will have to learn to create profits at a lower price point," Kang said.

Earlier this week, Samsung said it's on track to post its second straight quarter of profit decline, as slowing smartphone sales growth continued to weigh on earnings.

Samsung Electronics 1Q profit view just shy of estimates

The South Korean tech giant estimated that its January-March operating profit fell by 4.3 percent to 8.4 trillion won, slightly below an average forecast of 8.5 trillion won, according to Reuters.

I've created an infrastructure that significantly expands these investment markets by allowing anyone, anywhere with an Internet connection (of almost any speed) to participate in almost any of the world's public financial markets. Taking the subject matter of this article into consideration, we can short Samsung on its own home exchange of Korea for nearly any amount, from $10 million US down to $8 ...

The Family 2095-2097 - Copy

These same young investors can even hedge thier currency translation risk with a Korean Won US dollar forex pair, for 55 basis points!

manage currency risk in Ultracoin while using it to short Samsung

Armed with the information from simply reading my blog posts, your brothers from Haiti or Botstwana can now take short positions in these (margin)doomed hardware manufacturers - taking the other side of the trade from these big name financial institutions that don't seem to read my writings.


These are kids that I taught UltraCoin to during my trip to Haiti a couple of weeks ago. Before you assume, the kids are actually quite bright and adept at math, and yes - kdis can easily trade with UltraCoin. My kids have been doing it for months!
thumb Slide16

My UltraCoin project will nearly double the available potential investors able to profit from these markets. By making the ability to participate in multi-asset class prices moves bi-directionally (that's right,  long and short) I will be increase the liquidity of said markets by almost 2 billion people, as per McKinsey:

  • 2.5 billion adults, just over half of the world’s adult population, do not use formal financial services to save or borrow.
  • 2.2 billion of the unserved adults live in Africa, Asia, Latin America, and the Middle East.
  • Of the 1.2 billion adults who use formal financial services in Africa, Asia, and the Middle East, at least two-thirds, a little more than 800 million, live on less than $5 per day (purchasing power parity adjusted).
  • Regulatory and policy environments, as well as the actions of individual financial services providers, affect usage levels in a way that is, to a large extent, independent of countries’ socioeconomic and demographic characteristics.

I just had the pleasure of meeting this young lady from Botswana who's trying to spearhead Bitcoin adoption in her country. I've made friends and I'm going to supply her with the means to have the whole country trading a whole variety (UltraCoin can trade more than 10,000 tickers - stocks, bonds, options, futures, indices) of financial assets very soon. 

PS Paying BoomBustBlog subscribers can download the latest beta as of Tuesday evening EST.

I'll leave it up to you to determine who'll win those trades. These are interesting times indeed. For those who are not aware of how far I've come in transforming the way value is traded across geo-political and socio-economic lines, I urge you to view the following video and/or peruse the embedded presentation below it.



Samsung Follows Footsteps Of Apple, HTC, Nokia - Wasn't ...

Sep 6, 2013 - Smartphone Hardware Manufacturers Are DeadNov 29, 2012 - Two and a ... BoomBustBlog Mar 7, 2013 - applecutsabreandriod3d Two and a ...

Sep 27, 2013 - Here I go again – Hardware is Dead & Samsung Agrees Featured ... raw fundamentals and margins, let's look at the newest crop of hardware.

Jan 25, 2013 - A Glimpse of the BoomBustBlog Internal Discussion Concerning the Fate of Apple - This ... So, you ask, "How is it that hardware is dead?" Well.

Nov 29, 2012 - Two and a half years ago I declared in my mobile computing wars series that Google would commoditized the mobile computing space, thereby ...

Dec 10, 2012 - Last week I told the world that hardwarevendors are DEAD! At least the fat margin business modelhardware vendors (like those whose name rhymes with Snapple). ... Related BoomBustBlog Subscription-only Research:.


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Herdee's picture

I'm wondering if any of these American Companies that have hundreds of billions of Dollars in offshore tax havens (Companies like WalMart & Apple) will ever bring that money back into America to be taxed?Kind of doubt it,but my point is this,what are they all going to do if and when the coming collapse of the U.S. Dollar happens?Don't tell me that all these Corporate dumbies are too stupid not to put that kind of money into hard assets?Even Warren Buffet who's never said anything good about gold buys hard assets like railroads.What are all these Corporate stooges hiding trillions offshore for?To devalue and become worthless?Not to bright a strategy.You'd think if any of them had a brain in their heads that they'd at least hedge with an insurance policy ( gold ).But then again,maybe their hedge is to be short against their own corrupt Government in Washington in the derivatives market?

Binko's picture

Hardware may not be dead, but the endless need to upgrade certainly is. 

Look at videos. Everybody loved DVDs and bought a bunch of them. Then came Blu-Ray. Looks great and people buy them, although generally not in the great quantities that they bought DVDs. But now we have streaming from Netflix and others which gives you DVD level of quality. Turns out that most people are happy to sacrifice the extra quality of Blu-Ray for the convenience of streaming. So that's it. The general public will not buy into the next format beyond Blu-Ray. 

Same thing with phones and tablets. You still see a bit of upgrade mania because many people are on their first high quality device. But, at the top end, we have reached the point where the screens are big enough, the performance is good enough that many will never see the need to upgrade. They may side-grade to a new device that is functionally mostly the same. But they will expect it to be significantly cheaper. 

In general we are reaching a time when people want upgrades in ease and convenience and downgrades in price. The hardware is good enough. 

SmittyinLA's picture

Phones r out tablets are in, Samsung is cleaning up.


Seen the Galaxy Note Pro 12.2?

NoWayJose's picture

Hardware is dead - in fact it is designed to stop working every two years when your contract needs to be renewed. I am still waiting for a basic phone with a touchscreen and Wi-Fi only Internet so that I don't have to pay monthly smartphone charges.

bagehot99's picture

It's called an iPod Touch and they've been available for several years!

ebworthen's picture

Hardware is not dead; people will always want the gadget with the glow to light up their face and swipe their thumb over and drop or replace after 6 months or a year for the new gadget.

Drops in sales and revenue could be due to the suck ass economy versus demographic or paradigm shifts.

I'm behind you in fighting fiat and banks and central banks but teaching kids to do puts/calls ultimately will support the casino and turn them into gamblers versus producers of things like food.

I like you Reggie; if you become too noticeable you will become just big enough for .gov to fry.

Stay safe.

drdj4425's picture

Reggie,  I watched your presentation twice and my questions are; 1.you complete trades with ultracoin which are are then settled in cash.  How is this accomplished?  I assume some deposit must be made with the ultracoin server or the ultracoin has some kind of dollar value.  How is this cash settlement made and what are the security protocalls to access the ultracoin server?   If a cash deposit is held by ultracoin is it kept in some sort of third party escrow account. You said that ultracoin represents value and not money, but trades are settled in cash.   As with all financial innovations he devil is in the details.  Thanks for your presentation.

kurt's picture

You got one on the hook. I saw the rod jiggle. You need to set the hook. Too slow and he's gone. Too fast or hard and you rip it out, and he's gone. I'd recommend a teaser response like, "If I told you, I'd be giving away too much but I am willing to open up an account with you for a small deposit. We have a whole family of investment products and services."

Quinvarius's picture

Thsi kind of reminds me of some African Warlord recruiting child soldier cannon fodder.

TPTB_r_TBTF's picture

I want to learn more about the "young lady from Botswana."

Prisoners_dilemna's picture


I've said this to you before and I will say it again now.... With respect!

I have trouble understanding much of what you say. I'm not sure if it's sound quality, your low voice, enunciation, I dont know.

I want to hear what you have to say but it is difficult.

I can't be the only one.



TPTB_r_TBTF's picture

He said, "some kids with a bitcoin are going to dismantle Wall Street."

tony bonn's picture

reggie - you are a genius.....you can't write or present for squat half the time, but you are a genius...and god bless you for helping these kids - i wish you the very best of luck.

I Write Code's picture

Exsqueeze me, but is this an advertisement and solicitation?

alien-IQ's picture

These posts of his have become nothing short of blatant advertising thinly disguised as "information". It's insulting and I'm really surprised ZH gives this bullshit a pass...or is Reggie paying for this ink space? Somehow, I doubt it.

Ban KKiller's picture

Everyone everywhere are advertising some idea or product, no? 

TPTB_r_TBTF's picture

The Tylers need at least one non-white blogger in order to host in the Schweitzer Land

to prove they are not racists.

Ban KKiller's picture

The future is confusing, at best. Change is resisted by most as they want to hold on to their "power", however small that may be.

Appreciate your work, Reggie. 

Savyindallas's picture

Good lookin boys, Reggie. Hope they're smart like their Dad.

tradewithdave's picture

Every successful tech company was a mashup combining freemium with paid (or government sponsored spying) services. Why can't Reggie respond with a mashup strategy? I think he's justified. Time will tell, but time is not on your side. Republican/Democrat is passé. Time to choose between IOS and Android... the new value system expression.

Ying-Yang's picture

Good luck with your passions... your going to need it.

Element's picture

Samsung Will Be Ready To Do That Fruit ThingSmartphone Hardware Manufacturers Are Dead.

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All those ultracoin links seem to be dead Regggie.

But the plastic bitcoin thingies are real pretty.

Element's picture

No probs ... so the Terminator AIs won't wipe us out soon ... that's nice to know.

Vampyroteuthis infernalis's picture

Reggie, your assumption about hardware being dead as Moore's law comes to end of the road is correct. The crypto currency thing has nothing to do with this. Stop mashing unrelated things together!

Reggie Middleton's picture

Moore's law has not come to the end of the road, Android has so shortened the product life cycle and increased the expected product performance that OEMs are having a problem extracting rents from the cycle and recoupling R&D, production and marketing costs. 

In addition, if you can't see that the "crypto currency thing" is what enables one to take action on the OEM predicament then you simply have a problem understanding this "thing". 

When you say you want to buy or sell a hardware stock, or you mixing and matching "exchange technology thing(s)" with Moore's Law???

Vampyroteuthis infernalis's picture

Reggie, I work in the semiconductor field. Moore's law is financially dead, not physically dead. Any further scaling results in little improvement in device speed with extraordinary costs per node. If you believe the propaganda Intel and Global Foundaries are pumping out, best of luck. The shortened product life cycle is a mature industry in a desperate attempt to regain relevance. Low hanging fruits are long gone.

The cypto currency concept is fascinating, but novel. As we saw Mt. Gox crash, it has some growing up to do along with other similar technologies.

Reggie Middleton's picture

The Mt. Gox crash was a simple robbery and had nothing to do with the viability of Bitcoin. Did Wilie Horton presage the foiblesnof the dollar?

OptionsHedge's picture

so what's keeping brazil (EWZ) up...the hedge fundies spy pair trade?

SafelyGraze's picture

I haz got to tradez in my Kony Koinz for theze new crip-to blingz!