Samsung shares slide amid Galaxy S4 sales concerns, mimicking Apple's own losses

Posted:
in iPhone edited January 2014
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


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.
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Comments

  • Reply 1 of 66
    Next to fall: AMZN
  • Reply 2 of 66


    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.

  • Reply 3 of 66
    stelligentstelligent Posts: 2,680member

    Quote:

    Originally Posted by GadgetCanadaV2 View Post


    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? 

  • Reply 4 of 66
    stelligentstelligent Posts: 2,680member


    Wonder if this rumored trade-in program is real. If so, how does it differ from what's currently happening?

  • Reply 5 of 66
    Amazing how last years i5 still competes in a big way. " a 5" iPhone would see the mother of all upgrade cycles"
  • Reply 6 of 66
    anantksundaramanantksundaram Posts: 20,404member
    Lol. What goes around comes around.

    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).
  • Reply 7 of 66
    zoffdinozoffdino Posts: 192member
    Maybe it's too early to tell if Samsung share will slide for as long or as deep as Apple. Apple lost 45% from its peak of $705 to its trough of $382 in 8 months. Samsung only dropped 6% for a day. I'm not a Samsung investor in anyway, but the pain in Apple has been management's dead silence during the slide. For Samsung it looks like someone may care if a prolonged downturn in stock price is played out.
  • Reply 8 of 66
    chandra69chandra69 Posts: 638member


    Samsung spammed the market with ridiculous huge number of models. It took only less time for people to realize it.

  • Reply 9 of 66
    asdasdasdasd Posts: 5,686member
    Samsung continues to copy Apple.
  • Reply 10 of 66
    wurm5150wurm5150 Posts: 763member
    Samsung is even copying Apple's share losses..
  • Reply 11 of 66
    superdxsuperdx Posts: 67member
    The massive marketing campaign brought a lot of attention and buyers to the S4 product, but a large part of product successes also depend on word of mouth. This hasn't happened. Review sites don't highly recommend it, and people who have the phone don't sing its praises.

    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.
  • Reply 12 of 66
    jungmarkjungmark Posts: 6,926member
    But Sammy shipped 10 MM GS4's in a month?!!

    Cue the Fandroids saying Sammy lost its innovation and is in a slow decline. What, only Apple can be described like that?
  • Reply 13 of 66
    constable odoconstable odo Posts: 1,041member
    There were rumors that the Galaxy S4 didn't quite meet Samsung's own sales expectations, so the drop in Samsung's shares may confirm this rumor to be the truth. I honestly thought Samsung was pounding Apple to death, but I guess even that's not good enough for Samsung's investors.
  • Reply 14 of 66
    Time for Samsung to doom .
  • Reply 15 of 66
    flaneurflaneur Posts: 4,526member
    . . . I honestly thought Samsung was pounding Apple to death, but I guess even that's not good enough for Samsung's investors.

    In other words, you still "honestly" think Samsung is "pounding Apple to death"?
  • Reply 16 of 66
    anantksundaramanantksundaram Posts: 20,404member

    Quote:

    Originally Posted by Constable Odo View Post



    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".....

  • Reply 17 of 66
    davendaven Posts: 696member


    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.

  • Reply 18 of 66
    It is not until Apple releases its larger display iPhone , Samsung is doomed ?
  • Reply 19 of 66
    vision33rvision33r Posts: 213member
    Samsung is their own enemy right now, not Apple. They over produced, over market, and rolled out too many tricks and gimmicks. You watch the Sammy commercials they intentionally and smugly targeted Apple users which will attract Apple haters but people who are on the fence may not like attack ads.

    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.
  • Reply 20 of 66
    rayzrayz Posts: 814member

    Quote:

    Originally Posted by Constable Odo View Post

     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. image


     


    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.

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