In my opinion, the market for the S4 is not the same market for the Note users. The S4 is competing for the best in class smartphone.
Many people who purchased the S2 in 2011 (an amazing phone in its own right) on a 2yr contract, and were not able to justify the cost of an early upgrade to the S3 last year, are ready and waiting in 2013. The S4 will sell millions because remember, Sammy sold nearly 40 million S2's.
However, the Note is in a class all it's own. It's only competition is the LG Intuition (VUE) on Verizon, which was a flop. The Note, both the original and the Note II, provide the user with the ultimate all-in-one device. A full feature rich smartphone, screen size of a mini tablet, and the convenience of an electronic notepad and pen.
For me personally, unless a device has an S-pen, and the screen size of at least 5.5 inches, I could not even consider it as my daily driver.
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