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

post #1 of 67
Thread Starter 
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.
post #2 of 67
Next to fall: AMZN
post #3 of 67

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.

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post #4 of 67
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? 

post #5 of 67

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

post #6 of 67
Amazing how last years i5 still competes in a big way. " a 5" iPhone would see the mother of all upgrade cycles"
post #7 of 67
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).
post #8 of 67
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.
post #9 of 67

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

post #10 of 67
Samsung continues to copy Apple.
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post #11 of 67
Samsung is even copying Apple's share losses..
post #12 of 67
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.
post #13 of 67
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?
post #14 of 67
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.
post #15 of 67
Time for Samsung to doom .
post #16 of 67
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.

In other words, you still "honestly" think Samsung is "pounding Apple to death"?
post #17 of 67
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".....

post #18 of 67

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.

post #19 of 67
It is not until Apple releases its larger display iPhone , Samsung is doomed ?
Edited by crazy_mac_lover - 6/8/13 at 3:54am
post #20 of 67
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.
post #21 of 67
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. 1smoking.gif

 

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.

post #22 of 67
Quote:
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. 

 

Watch Sammy imitate Apple now, by announcing a $100 thousand capital buyback program and a 15 cent increase to it's quarterly dividend payout.  ;)

post #23 of 67
Quote:
Originally Posted by stelligent View Post

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

Not sure if it is real or not, but the news stations sure are selling it like it is...

post #24 of 67
Quote:
Originally Posted by Vision33r
 
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.

 

This is exactly correct.  the thing is that Samsung now has to go beyond simple copying and actually produce something innovative because they are now being closely watched by the tech community. The weird introduction of the S4 and the S4 itself prove that they "don't get it"-- you can't simply stuff all kinds of nearly useless stuff into a phone to satisfy a spec sheet and have it be a hit. Regular users don't care about the number of cores or the pixel count (beyond a certain point), they care about usability and battery life.  Time will tell but, in my opinion, Samsung has peaked if they continue to follow the "Copy Apple" path.

post #25 of 67
Samsung didn't sell 10 million phones in 30 days, they shipped 10 million phones. There is a significant difference, especially when just a few weeks later orders were cut 30%.
post #26 of 67

This is a little odd.

 

With Apple, the iPhone represents almost 2/3rd of their entire revenue/profit. Samsung Electronics is divided up into many sections from Mobile to Semiconductors to LCD's and so on. The S4 only accounts for about 1/10th (or less) of Samsung revenue (based on their 10 million units shipped).

 

So it doesn't really make sense for Samsung shares to drop so much when they have another 90% of business spread out over many other areas.

 

Then again, share prices never make sense (look at Apple) so I guess it's business as usual for the speculators.

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post #27 of 67
Samsung 4 is just a tricked up plastic toy
post #28 of 67

Good!

post #29 of 67
Quote:
Originally Posted by jungmark View Post

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?


It was 5MM, get your story right.

post #30 of 67
Originally Posted by andrzejls View Post
It was 5MM, get your story right.

 

Does it really matter how many they lie about as long as they're lying?

 

And I'm still bothered by "MM" for million.

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

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post #31 of 67
Quote:
Originally Posted by anantksundaram View Post

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".....


This also can be said about you. So stop insults and add something constructive to this forum, not your constant rants.

post #32 of 67

My only regret is not shorting the hell out of this Fandroid stock. Is Samsung even on US exchanges? I don't see it there.

 

Whatever Samsung is currently worth is still far too much, and I look forward to it decreasing in value even more.

 

As for the deeply disturbed individual in this thread who is incoherently mumbling delusional thoughts about Samsung pounding Apple to death, I would advise you to seek some help, before it's too late to reverse your condition.

post #33 of 67
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.

Sammy's newest washer/dryer combo is very innovative! Though it's lack of a removable battery, memory expansion card or mini-USB port keeps it from being stellar.

post #34 of 67
Quote:
Originally Posted by zoffdino View Post

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.

Samsung is a lot more than electronics so I'm unsure what the overall impact of their phones hitting a plateau (which IIRC, they actually stated in their last earnings forecast as being about to happen) would be. They do consumer appliances and such as well, washers and dryers etc.

post #35 of 67
Quote:
Originally Posted by Tallest Skil View Post

Does it really matter how many they lie about as long as they're lying?

And I'm still bothered by "MM" for million.

MM is "Million in some financial contexts". Thanks Wiki. Would M*M be better?
post #36 of 67
Quote:
Originally Posted by Apple ][ View Post

My only regret is not shorting the hell out of this Fandroid stock. Is Samsung even on US exchanges? I don't see it there.

 

Whatever Samsung is currently worth is still far too much, and I look forward to it decreasing in value even more.

 

As for the deeply disturbed individual in this thread who is incoherently mumbling delusional thoughts about Samsung pounding Apple to death, I would advise you to seek some help, before it's too late to reverse your condition.

Samsung is traded only on the so-called 'pink sheets' in the US, i.e., it's not a regular ADR. The bid-ask spreads on those are way too high, and the trading is extremely thin. You want to stay away form those as a retail investor.

 

It's not surprising that Samsung doesn't want to do a full ADR listing in the US -- it is consistent with their generally not wanting to provide too much information about themselves (their investor relations people never respond to emails either).

post #37 of 67

They deserve this.

post #38 of 67
Originally Posted by jungmark View Post
MM is "Million in some financial contexts". Thanks Wiki. Would M*M be better?

 

I know, but I'd think a single m would make sense. How many Ms in 'million', after all…

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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post #39 of 67
Quote:
Originally Posted by crazy_mac_lover View Post

Time for Samsung to doom .

Except Samsung's doom is branded "S-DOOM" and uses NFC and is listed as one of the bullet point features of the Galaxy S4 to prove how innovative Samsung is.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

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post #40 of 67
Quote:
Originally Posted by Tallest Skil View Post

I know, but I'd think a single m would make sense. How many Ms in 'million', after all…

Ah...but a single 'm' is meters.
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