Apple Inc. Shouldn’t Be Worried About Samsung: Analyst

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Apple Inc. (NASDAQ:AAPL) has set its next big product launch for next Tuesday, but will the company be able to stand up to competitor Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930)? Investors aren’t so sure anymore, but Cantor Fitzgerald analysts say never fear, Apple’s “Fab Fall” is just about here.

Did Samsung fail?

In a report dated Sept. 4, 2014, analysts Brian White and Isabel Zhu called Samsung’s product launch “underwhelming, “rushed” and “half baked,” and they’re not the only ones who feel this way. Samsung’s Unpacked event was undoubtedly planned ahead of Apple’s event in an attempt to create buzz for the company’s products before Apple’s iPhone 6 is even revealed.

Ultimately, the analysts think the Korean electronics giant will fail to interest consumers. They note that Samsung did not reveal pries and provided only vague launch dates. They say the new lineup also offers “limited” specs and features that are “gimmicky.”

Instead of making things more difficult for Apple, the Cantor Fitzgerald team thinks Samsung has actually made things much easier. They say the company’s top competitor doesn’t seem to be adequately prepared to take on the iPhone 6 and Apple’s other products this fall.

Apple may take phablet share from Samsung’s Note line

Nearly all the buzz heading into Samsung’s Unpacked event this week was focused on the Galaxy Note 4, although that wasn’t all the company showed off. It also introduced the Gear S smartwatch and the Gear VR accessory for the Note 4.

The Cantor Fitzgerald team notes that Samsung did incrementally improve the Galaxy Note 4. However, they also say that the nature of the improvements is similar to what Samsung did earlier this year with the Galaxy S5, which ended up not selling as well as its predecessors have. As a result, they believe the 5.5-inch iPhone model could take a bite out of Samsung’s Note 4.

Also the Note 4 won’t be available until October, which may mean Apple will have a head start if it follows the same timeline it did in the past. The company’s event is scheduled on Sept. 9, and the iPhone 6 could be out as early as ten days later, putting it earlier than the Note 4.

Samsung’s Galaxy Edge may flop

The analysts think Samsung may not even find success with the Galaxy Edge it uncovered this week. They note that the novelty of being able to view the time and other information on the edge of the smartphone might attract some consumers. However, they don’t believe the device will become a hot item with high volume levels. And once again, Samsung did not provide an exact launch date.

They have reiterated their Buy rating and $123 per share price target on Apple after Samsung’s event this week.

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