Apple (AAPL, Financial)'s shares jumped 2% on Thursday after Samsung failed to meet the expectations of the market. Samsung’s Galaxy S5 had been generating a lot of expectations even before the company was out with the model. The plastic-made exterior of the device did little to attract the customers.
This kind of a design and that too for a high end phone from the Galaxy S series has not gone down too well with Samsung loyalists. People were expecting Samsung to come out with something bizarre and yes the company did exactly that but in a wrong sense.
This, the analysts feel would be a golden opportunity for Apple to make a impact in the market as the company is about to launch iPhone 6. Through this article I’d like to analyze how Apple could achieve that.
Apple remains the market leader
Wherever we look at, we find Samsung lagging behind Apple in the smartphone space. If we look at the market in the US alone, Apple continues to lead from the front. This leads us to conclude one thing that Samsung is now so used to the second place that it has now even stopped competing completely. Apple on the other hand has recovered from the losses it incurred earlier in the week. The tech giant has been able to rally since the $500 level back in February, and ran into some resistance at the 20-day and 50-day moving average. All this shows just how strong a footing the company has set in the global market.
Cheap Models make it easier for Apple
The introduction of the sapphire glass screens in Apple’s high-end models made a lot of news. After a point of time the people realized the drawback with supreme quality glass screens- high vulnerability to scratches. The market experts feel that if Apple updates their current version of iOS, improve the internal hardware and increase the screen size, it might just power them ahead of Samsung’s over-hyped Galaxy phones.
The analysts have forecasted 5.9% sales growth for 2014. With the expectations so low the company is sure to outperform that because the records have suggested that the company tops the chart every time it comes out with a new release (read iPhones).
My Takeaway
Samsung’s Galaxy S5 would be no match for Apple’s iPhone. It’d in fact be insane to even consider it in the contention for being the top end smartphones. iPhones over the years have become a cult in the market. With features suiting the present generation, iPhone 6 is going to make S5 look like a plaything. High expectations and a good forecast make Apple a targeted stock many an investor.
