Apple Likely to See Few Takers for $1,000 iPhone 8; Samsung May Capture Premium Market: Barclays
Samsung’s return to Galaxy Note 8 phablet was unveiled on Wednesday. Although the smartphone seeks to restore consumer confidence after the fiery disappearance of Galaxy Note 7, it is still not cheap.
The Galaxy Note 8 costs around US $ 930, but Mark Mark Moskowitz, Barclays says that Samsung is better positioned to capture the market share of premium smartphones with the smartphone than the Apple iPhone comes.
Barclays analysts have found that less than a potential buyer about 5 or 18 percent will opt for an iPhone that costs more than $ 1000, Google reports 9-5. Given past reports that the iPhone ahead of the tenth anniversary will cost around $ 1000, it can prove to be a tough fight to win by Apple.
“While the device [Galaxy Note 8] looks more evolutionary than revolutionary, we believe this release represents the return of the farm competition in the premium segment ($ 700 + ASP) of the smartphone market next note 7 Samsung Note last year .
For Apple, we are concerned that the company must meet the high expectations of investors after the planned launch of three new iPhones in September.
This could be more difficult considering that only 18% of iPhone buyers are willing to spend $ 1000 + for a new device, which is less than the figure of 30 to 35% since investors seem to expect, “says Barclays Report.
Samsung, on the other hand, should not see a slowdown in seeing how their Galaxy S8 smartphones have been replaced in the last quarter. Barclays believes that the collapse of the Galaxy Note 7 did not damage the company’s reputation and is unlikely to affect sales of Galaxy Note 8. And if Apple does not cost 8 $ 1,000 north of the iPhone, Samsung could simply own the premium market.
Apple is not only threatened by Samsung but will also care for players like Huawei, Oppo and Vivo as consumers are moving towards the mid-market as these companies are starting to offer near-top-end specs. One price affordable.
“This is even more important because of our view that smartphones will continue to” intrude “into the mid-range segment, where Huawei, Oppo and Vivo’s competition continues to intensify.”
Analysts’ rating sees Apple growing in the short term, but is not sure of the future. “Beyond the short-term term, we are concerned that Apple could lose a meaningful story” about what “keeps revenue growth.
As a result, we remain marginal. “We’ll have to wait to see how Apple plans its pricing strategy for its next iPhone to compete with Samsung’s latest offer.