1 Reason Samsung's Galaxy S5 Won't Top Apple's iPhone 6

Tech giant Samsung's (NASDAQOTH: SSNLF  ) Galaxy S5 is likely to be the toast of the tech talk this weekend, but don't expect it to top Apple's (NASDAQ: AAPL  ) iPhone 6 later this year.

Apple and Samsung are stuck in a head-to-head battle for dominance in hugely profitable but increasingly saturated market for high-end handsets. But unfortunately for Samsung, the Galaxy S5 appears to be more about playing catchup to Apple than leapfrogging it. And that, as tech investors should already know, bodes poorly for Samsung when Apple unveils its highly anticipated iPhone 6 later this year.

Source: Samsung.

Enjoy it while it lasts
This isn't to say that Samsung's Galaxy S5 isn't a fine device in its own right, especially when stacked up against other top-shelf Android devices. The Galaxy S5 ups the ante in both screen and back-facing camera quality. It's also early to embrace the coming glut of health-integrated smartphone apps, while also being water resistant. That's nothing to sneeze at.

However, as Samsung should know all too well, the real competition is Apple, and the Galaxy S5 fails to raise the stakes ahead of the iPhone 6. According to the rumor mill, Apple has some major upgrades in store for the iPhone 6 that should help it once again remain a development cycle ahead of Samsung as tech and telecom analyst Andrew Tonner argues in the video below.

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Read/Post Comments (5) | Recommend This Article (3)

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  • Report this Comment On April 11, 2014, at 5:08 AM, xMattPerkins wrote:

    The problem is Samsung is obsessed with trying to sell as many Galaxy S phones as Apple sells iPhones instead of just focusing on being the top overall smartphone maker. The obsession to be the top overall phone maker meant Samsung had to sell their lower end phone for below cost. Now Samsung is selling the Galaxy S5 for near cost by doing promotions like buy one get one free and offering $600 worth of free stuff. This will destroy Samsung's profit margin.

    And this is all for naught for Samsung. The S5 discounts and all will not help sell as many S5's as Apple sells iPhone 6's. People will wait in line days in advance to get an iPhone when it comes out. People don't wait in line days in advance to pick up the new Galaxy S phone.

    The smart strategy for Samsung would be sell their low end phones for around cost and sell their Galaxy S phones for as much profit as they can. You're not gonna beat Apple in the high end market so rather than try to compete with Apple in the high end market, Samsung should use their high end devices to keep their profit margin in the green not drifting into the yellow and then red.

  • Report this Comment On April 11, 2014, at 10:22 AM, erroljr wrote:

    Your kidding me right??? Stock?? Is the only reason that Samsung can't beat the iphone??? Really what a joke. Another fan boy with stupidity at it's finest!! Iphone never has and never will beat any galaxy S phone. It is still behind the first Galaxy S phone years ago. LOL!! Are you kidding me who writes this stuff.

  • Report this Comment On April 11, 2014, at 11:09 AM, CrazyDocAl wrote:

    Samsung's market is not the high end over priced market that Apple seams to favor. The S5 is targeted to be a phone that carriers can sell for a reasonable price. Apple hasn't got the message yet but carriers in the US are moving away from the "discount with a 2 year contract" plans. That's going to make the real cost of the phone a much bigger issue. in a month or so the S5 will be discounted.

    Samsung may introduce a new line of a more expensive phone but that remains to be seen.

  • Report this Comment On April 11, 2014, at 1:35 PM, rrecine wrote:

    Regardless of sales, it's the best phone out there. iSheep will have to settle for second best. McDonald's sells the most burgers too. Are they the best? Move on fool.

  • Report this Comment On April 12, 2014, at 8:14 PM, theslater wrote:

    what a stupid article, "Samsung playing catchup" this moron hasn't even touch another phone that isn't iPhone probably

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Andrew Tonner

Andrew Tonner is a tech specialist for The Motley Fool. He is a graduate of The University of Arizona with a degree in Finance.

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