Samsung Shares Drop On Nervousness About Galaxy Sales


If Samsung's Galaxy S4 does not sell well, investor hope that it will be the only challenger to the Apple (NASDAQ: AAPL) iPhone will shrink quickly. Samsung, then, would be considered just one in a line of unsuccessful competitors. Sales of earlier version of the Galaxy led investors and technology experts to believe that Apple's new iPhone 5 S might not be a resounding success because Samsung would have taken too much market share in advance of the launch of Apple's new product.

Samsung Galaxy S4 sales may have missed the market, and doubts drove its shares lower

According to Reuters:

Samsung Electronics Co lost $12 billion in market value on Friday, hit by brokerage downgrades that have underscored concerns about slowing sales of its flagship Galaxy S4 smartphone.

The share slide of more than 6 percent comes after it recently introduced two stripped-down versions of the S4, fanning worries that profit margins for its mobile business will suffer. It also follows a report that arch-rival Apple will begin a trade-in programme for iPhones.

The new stripped-down S4 models will help it widen its lead in the global smartphone market and fend off Chinese competitors, but some fear that the South Korean tech giant is trading in profits for volume.

Analysts say sales momentum for the high-end version of the S4, which became its fastest selling smartphone since its launch in late April, has slowed.

Killing off Apple's smartphone line may just have gotten less likely. And, the sell-off in Apple's shares has lost some of its support

Filed under: 24/7 Wall St. Wire, Consumer Electronics