Samsung Is Missing Internal Targets For Galaxy S4 Sales

Samsung is missing its internal sales targets for the Galaxy S4, says Jefferies analyst Peter Misek.

Misek says this is helping Apple because Samsung was going to raise foundry prices on Apple if sales of the S4 were stronger.

The exact language from his report: "Galaxy S4 sales missed internal targets leading Samsung to not raise foundry prices for Apple like we expected."

Misek is turning bullish on Apple, saying it was getting favorable pricing from suppliers like Samsung. This favorable pricing should lead to an increase in gross margins.

He doesn't give much insight into why the S4 is coming up short of expectations.

Last week, Reuters said S4 sales were slowing as the high end of the market was saturating. However, Samsung still had record earnings based on strong sales from its chip business.