The design of the device, however, has left much to be desired, say market watchers. The phone, which is a tad bigger, thicker, and heavier than its predecessor, is essentially made from plastic and has a dimpled faux leather exterior, which some say doesn't look or feel "premium."
"I was expecting more in terms of the industrial design, but I think Samsung has done a better job in presenting a differentiating experience with the S5 than it did with the S4," Wayne Lam, senior analyst, wireless communications at IHS told CNBC.
"With features like the heart-rate monitor, Samsung is aiming to make the device almost like an active lifestyle companion. It speaks to Samsung's broader ambitions of being a lifestyle brand," he noted.
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Kiranjeet Kaur, senior market analyst at IDC says while the new features are positive, they are not "ground breaking."
"We still have to see what new positive additions come to iPhones later this year. As per rumors, it is going to be a larger screen phone. So between the new features of Galaxy S5 and a larger screen 'iPhone 6', my guess is that larger screen iPhone would grab more eyeballs," she said.
Apple's next generation iPhone, set for release by September/October, is rumored to sport a 4.7-inch display – notably larger than the iPhone 5's 4-inch display, but a touch smaller than the Galaxy S5's 5.1 inch screen.
Tom Kang, research director at Counterpoint Research says if Apple delivers on a bigger screen iPhone, Samsung's latest offering may not be a convincing enough proposition for users.
"The Apple brand is very strong. A third of android users who previously owned an iPhone switched because of screen size. If the screen size problem is solved, they are most likely to go back," he said.
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Rob Enderle, principal analyst at Enderle Group added, "If Apple significantly updates the design of the iPhone it could leave this latest Samsung phone in the dust."
Samsung, like all other smartphone manufactures, faces the grand challenge of consumer upgrade fatigue. With devices nowadays offering incremental improvements compared with previous models, users are less inclined to break their mobile contract to upgrade to a newer device.