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Apple Need Not Worry About Samsung's 'Totally Useless' Acquisition

Louis Bedigian

Did Apple Inc. (NASDAQ: AAPL) miss out on the M&A of a lifetime when SAMSUNG ELECT LTD(F) (OTC: SSNLF) acquired LoopPay?

"I think the technology of this stuff is totally useless," Global Equities Research analyst Trip Chowdhry told Benzinga. "Google has learned from the mistakes it made with Google Wallet. Apple already knows the value is having a secure element in the device. I don't think the company Samsung has acquired is any good."

Chowdhry said that Samsung's acquisition indicates that the electronics giant is "totally clueless when it comes to what is the key thing" needed to be successful in mobile payments. He would have been more impressed if Samsung had acquired Tyfone.

"A company to keep an eye on is Tyfone," Chowdhry continued. "They have the key technologies, which...some people believe Apple has copied their design philosophy because Apple has a secure element in the chip."

Chowdhry said that Tyfone is responsible for inventing that concept, which Apple has now implemented.

"Both Apple and Google know that, to be successful in mobile payments, you have to have technology that has a secure element on the device," he concluded. "[Samsung's acquisition] is dead on departure. Samsung doesn't understand the payment model."

Related Link: EXCLUSIVE: LoopPay CEO Talks Samsung Acquisition, Apple Pay

Apple 'Cracked The Code'

There's been a lot of hype surrounding the mysterious way that Apple cracked the code in developing the perfect TV. In reality, Apple may have focused its attention on mobile payments, not television.

"Apple cracked the code on mobile payments," Sean Udall, CIO of Quantum Trading Strategies and author of The TechStrat Report, told Benzinga. "It wouldn't make any sense for Apple to go buy somebody when they've basically reinvented the process and improved on everything."

Udall, who previously worked at Visa Inc (NYSE: V) and VeriFone Systems Inc (NYSE: PAY), believes that Apple Pay is "going to be the largest mobile payments network."

Rather than investing in mobile payments, Udall thinks Samsung should have invested in another mobile device manufacturer: BlackBerry Ltd (NASDAQ: BBRY). He said BlackBerry would allow the Galaxy S manufacturer to differentiate itself and get off Android.

"That's the only way I see them staying in mobile and doing pretty well," said Udall.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

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