Galaxy S4 Sales Slow, Samsung Stock Takes a Hit

Samsung GALAXY S4 Active officially announced

Samsung took a stock hit on Friday,  losing $12 billion as prices dropped 6 percent after reports of Galaxy S4 sales slowing down. The S4 looked great out of the gate, with huge sales numbers but analysts now report that sales of high-end Samsung smartphones aren’t meeting expectations. Orders for Samsung Galaxy S4 units from manufacturing partners will reportedly drop 20 to 30 percent in Q3 2013, well short of sales projections.

It seems like only yesterday (ok, last week) that Samsung was posting astronomical sales numbers for its flagship, the Galaxy S4. But now a new J.P. Morgan report is casting doubt on the future, and casting Samsung stock into freefall.

From the Wall Street journal Story:

Traders said the decline was triggered by a research note from J.P. Morgan analyst J.J. Park, who wrote that shipments of the Galaxy S4 for the third quarter would likely “disappoint” investors, resulting in lower-than-expected margins for Samsung.

“Our supply chain checks show monthly orders have been cut 20%-30% to 7 to 8 million units (from 10 million) starting July,” wrote Mr. Park. He downgraded Samsung’s share price target to KRW1,900,000 from KRW2,100,000 previously.

Samsung declined to comment Friday. The share price decline was reminiscent of the fall in Apple Inc. shares earlier this year, which was sparked by concerns over iPhone sales.

[Via: WSJ]

  • CallMeYoDaddy

    I can promise you the HTC One plays a part in this. Just a year ago there was no other android device that could challenge Samsung but fast forward a year later and things have changed! The HTC One is simply the most beautifully designed phone on the market and sales for the HTC One have been fantastic!

  • vikings football

    i think it has to do with samsung putting out too many phones in short gaps…as well as the 2yr contract b/s.

  • cooldoods

    I think analysts should be more circumspect using supply chain orders as basis when it comes to Samsung. Unlike Apple, Samsung releases variants of its flagship devices, and actually has more than one flagship device series. The Samsung Galaxy S4 has an octa-core version, an S4 mini version, an S4 Active version, and the upcoming S4 Zoom, and all of them have varying parts inside and outside. Just the mere mention of a cutback on parts supply orders can simply indicate that Samsung is internally adjusting its production and sales forecasts based on expected demand for these other versions.

  • xxd

    Frankly,

    This phone won’t make it.

    All android phones have an inherent flaw – its malware

    99% mobile viruses and other mobile malware comes for android.

    This is funny if you consider, that android comes from linux, which was thought to be very secure.

    I’d like to cite a report:

    “Security firm McAfee warns that Google’s mobile operating system is being targeted by hackers more than any other platform.Android accounts for nearly all mobile malware and more than 14,000 threats have been discovered in the first three months of 2013 alone.”

    My advice … if you are not 10 years old and haveany valuable data, better switch to Iphone or Nokia Lumia before you get a 5000 dolar bill for expensive sms or your bank account gets cleaned…

  • C.Umang

    Soory.. But It’s(SAMSUNG GALAXY S4) a Most Advance Phone Ever By report : User

  • PeterSteinbeck

    No wonder – it’s super-expensive.

  • vasras

    Very expensive. Not enough ‘different’ from S3. No ‘new’ Android OS. HTC One is there. S4 Zoom is coming. Next iPhone is coming. Even the Sony’s are doing ‘ok’ in the market.

    Just too many options, now and in the near future.

    I’ll wait for a Tegra4 or Snapdragon 800 based 5-6″ device. Hopefully Note III will deliver.

  • Bravadu

    That’s what happens when you launch worldwide on the same day and saturate the market – your day 1 sales are unbeatable, but it soon tapers off sharply.

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