An analyst note today from Barclays’ Mark Moskowitz and company predicts that Samsung is in position to take more of the premium smartphone market share with the launch of its Galaxy Note 8. They are also concerned that less than 1 in 5 potential iPhone buyers will spend $1,000 or more on a new iPhone.
The note shares that even though the Note 8 isn’t a “revolutionary” device, it still represents a return to stiff competition in the premium smartphone market, particularly between Samsung and Apple.
The analysts share doubts and predict challenges for Apple as according to one if its surveys, only 18% of possible iPhone buyers will plan to shell out $1,000+ for a new iPhone.
Barclays believes that Samsung’s reputation hasn’t been damaged long term after the Note 7 disaster, as it already saw growth in the premium market during the last quarter.
In addition to the increased competition in the $700+ market, Barclays says Apple will see more challenges (particularly abroad) as more consumers will move to the midrange market.
The note forecasts that AAPL will continue to grow in the near term, but shares uncertainty for the long-term outlook.
Barclays has lowered its AAPL target price 9% to $146 from the current $159.78 To catch up on all the latest iPhone 8 news, check out our guide here.
