updated 11:19 am EDT, Thu May 8, 2014
Samsung Galaxy S5 keeps 5s sales from going higher
Surveys conducted by Canaccord Genuity indicate the iPhone 5s "remained a top selling smartphone at all tier-1 US carriers and at a number of global channels," according to an analyst with the firm, Michael Walkley. The data has led Walkley to increase his price target for Apple stock from $610 to $660. He does note, though, that 5s sales were "softer"in April than they were in the March quarter, as the launch of the Galaxy S5 allowed Samsung to snag a good portion of the international high-end smartphone market. "In fact, the Galaxy S5 was the #1 selling smartphone at all four tier-1 US carriers," he remarks.
Walkley separately notes that a growing number of people in the US are opting into early upgrade programs like AT&T Next or T-Mobile Jump. People participating in the programs are said to be leaning towards high-end phones. "We believe these trends could enable Apple to charge higher prices for larger screen iPhone 6 models," he claims. "We believe Apple should win back meaningful high-end market share during 2H/2014 based on our belief new iPhones with larger screen sizes could create a strong upgrade cycle among Apple's loyal base."
The size of the iPhone has become a problem for Apple. As far back as 2012, when the iPhone 5 first shipped, its 4-inch format was already half an inch or more behind Android-based rivals. The 5s retains a 4-inch display, but Apple is believed to be working on two much larger iPhones for this year: one measuring 4.7 inches, and the other 5.5, dwarfing most smartphones short of devices like the Galaxy Note 3 or Galaxy Mega.