Analyst: Samsung Showing ‘Weakness’ as Apple Grows
Are Samsung’s (SSNLF.PK) Android-based devices finally showing some chinks in the armor? Société Generale analyst Andy Perkins raised his rating on Apple (NASDAQ:AAPL) stock from a “Hold” to a “Buy” and set a $575 price target based on information he recently collected from Asian suppliers, reports Barron’s.
According to Perkins, both Samsung and the overall Android platform may have already hit their peak. “Looking out further we believe we may be seeing the first signs of weakness in Android/Samsung handsets,” noted the analyst via Barron’s. On the other hand, the analyst sees “strong rises” in Apple’s iPhone sales.
Perkins cited a 20 percent increase in sales for Hon Hai Precision Industry and Pegatron as evidence that Apple’s iPhone revenues are rising. “Additionally, Chinese September export data shows handset value up 30 percent YoY. As there has historically been a close correlation between Apple iPhone revenues and Chinese export value (Hon Hai and Pegatron’s main manufacturing facilities are based in China), we believe that this also bodes well for Apple’s third quarter results,” wrote Perkins.