Samsung shares slide amid Galaxy S4 sales concerns, mimicking Apple's own losses
Amid concerns that sales of the Galaxy S4 could disappoint, shares of Samsung fell more than 6 percent on Friday, in a selloff that mimics Apple's own losses driven by investor pessimism starting in late 2012.
Samsung's market capitalization fell $12.4 billion to $187.8 billion following a research note from J.P. Morgan warning investors that Galaxy S4 sales in the third quarter could fall short of expectations, MarketWatch reported on Friday. It was said that monthly orders of Samsung's latest flagship smartphone were cut by as much as 30 percent, which could negatively affect the South Korean company's margins.
The losses seen by Samsung drew immediate comparisons to Apple, which saw its share price drop starting in late 2012, carrying through to early 2013. Those losses were attributed to investor concerns that iPhone growth was slowing.
Both Apple's iPhone 5 and Samsung's Galaxy S4 compete in the high-end smartphone segment ??a market that industry watchers believe could be reaching saturation. That's helped to fuel speculation that Apple could launch a new low-end iPhone this year to target customers who prefer unsubsidized handsets that are not tied to a new two-year service contract.
Apple's stock stopped dropping after its quarterly earnings report in April, when the company revealed it had beat Wall Street expectations on revenue but saw its profits fall for the first time in a decade.
Rather than sales, investors were mostly interested in Apple's announcement of a $100 billion capital buyback program and a 15 percent increase to its quarterly dividend payout. The belief among market watchers is Apple's actions placed a "floor" under its share price in the face of persistent concerns about iPhone growth.
As for Samsung, the company announced in May that it had sold 10 million of the Galaxy S4 worldwide in its first 28 days of availability. In comparison, Apple's iPhone 5 garnered 5 million sales in three days when it launched in September of 2012.
Samsung's market capitalization fell $12.4 billion to $187.8 billion following a research note from J.P. Morgan warning investors that Galaxy S4 sales in the third quarter could fall short of expectations, MarketWatch reported on Friday. It was said that monthly orders of Samsung's latest flagship smartphone were cut by as much as 30 percent, which could negatively affect the South Korean company's margins.
The losses seen by Samsung drew immediate comparisons to Apple, which saw its share price drop starting in late 2012, carrying through to early 2013. Those losses were attributed to investor concerns that iPhone growth was slowing.
Both Apple's iPhone 5 and Samsung's Galaxy S4 compete in the high-end smartphone segment ??a market that industry watchers believe could be reaching saturation. That's helped to fuel speculation that Apple could launch a new low-end iPhone this year to target customers who prefer unsubsidized handsets that are not tied to a new two-year service contract.
Apple's stock stopped dropping after its quarterly earnings report in April, when the company revealed it had beat Wall Street expectations on revenue but saw its profits fall for the first time in a decade.
Rather than sales, investors were mostly interested in Apple's announcement of a $100 billion capital buyback program and a 15 percent increase to its quarterly dividend payout. The belief among market watchers is Apple's actions placed a "floor" under its share price in the face of persistent concerns about iPhone growth.
As for Samsung, the company announced in May that it had sold 10 million of the Galaxy S4 worldwide in its first 28 days of availability. In comparison, Apple's iPhone 5 garnered 5 million sales in three days when it launched in September of 2012.
Comments
Samsung is doomed! Samsung doesn't innovate! Samsung needs to release a $0.05 handset!
Replace Samsung with Apple and this is the kind of shill that the fandroids have been preaching all year. Have fun with your falling stock.
Quote:
Originally Posted by GadgetCanadaV2
Samsung is doomed! Samsung doesn't innovate! Samsung needs to release a $0.05 handset!
Replace Samsung with Apple and this is the kind of shill that the fandroids have been preaching all year. Have fun with your falling stock.
This article is shill? How does one preach shill?
Wonder if this rumored trade-in program is real. If so, how does it differ from what's currently happening?
If/when Samsung actually releases volume sold/shipped data, we'll likely discover that a lot of the news about S4's much-vaunted success was breathless hype. (Of course, that explains why they won't release those numbers).
Samsung spammed the market with ridiculous huge number of models. It took only less time for people to realize it.
Hope the S5 puts more emphasis on the product itself, the build materials and really reducing the mountain of feature apps that people don't use, but look good on a brochure.
Cue the Fandroids saying Sammy lost its innovation and is in a slow decline. What, only Apple can be described like that?
In other words, you still "honestly" think Samsung is "pounding Apple to death"?
Quote:
Originally Posted by Constable Odo
I honestly thought Samsung was pounding Apple to death....
Other than yourself, I doubt that the rest of the world cares a whole heck of a lot whether you honestly thought "....Samsung was pounding Apple to death".....
My guess is that Google is the next to take a hit when Samsung moves their phones to Tizen in an effort to increase profits and differentiate itself from Google's own phone offerings. This will lead to an immediate mega-divide in the Android community and a lot of Android in-fighting battling Samsung's army of paid posters against Google's PR machine.
People I know who got the S3 will most likely not upgrade for the next 2 years since the S4 is same physical size just different bits and pieces inside.
Quote:
Originally Posted by Constable Odo
I honestly thought Samsung was pounding Apple to death, but I guess even that's not good enough for Samsung's investors.
What can I say? You honestly thought wrong.
But let me guess this straight:
Apple doesn't have a cheap phone, so it's failing
Samsung's phones are cheap, so it's failing.
Looks to me like the real failures are the analysts.