It appears Apple's situation, thanks to the Samsung Galaxy S4's popularity, isn't as dire as everyone once thought. Apple's iPhone 5 is still unbeaten.
In a research note to investors on Wednesday, analyst Canaccord Genuity reported the iPhone 5 as the top-selling smartphone with essentially all global carriers. This is due, in part, to the successful marketing of the smartphone on its newest carrier, T-Mobile. Analysts credit T-Mobile with iOS recent 41.9 percent hold on the smarphone sales market in the United States, an increase from 3.5 percent from the same time last year.
However, the company isn't out of the woods just yet. The analysts also found that since the launch of the Galaxy S4, Samsung's flagship smartphone that has become a viable alternative to the iPhone in many user's eyes, Apple has been losing ground in the global market share to the South Korean electronics giant. Despite the claim, Canaccord didn't give any specifics as to what the impact of the Galaxy S4 was on the iPhone, according to CNET.
That isn't all. Not only does Apple have to find a way to get a better lead on Samsung, it has to do it while demand for high-end smartphones diminishes. The researchers behind the report believe the demand for "high-tier smartphones" will experience "softening demand" over the next several months. Apple Inc. was surprised by the increased demand for the iPhone 4, which launched a few years ago but experienced a surge after the iPhone 5's release, forcing the company to lower its iPhone sales estimates this quarter to 28 million from 30 million units.
This has sparked a lot of demand for a low-cost iPhone that is rumored to be in development. The low-end iPhone 5 would carry a lot of the same features as the brand's flagship phone but, instead will feature a plastic backing rather than a metallic or glass one that is currently found on popular iPhone models.
Despite the murky future ahead, Canaccord remains confident in Apple's shares, putting its 12-month price target at $530 - Apple's latest closing price was $422.35.
