As Galaxy S4 sales lose steam, investors lose confidence in Samsung
Samsung took a stock hit on Friday to the tune of $12 billion as prices dropped 6 percent on fears of slowing Galaxy S4 sales. While the handset got off to a hot start, analysts now recognize that sales of high-end Samsung smartphones are falling short of expectations. Orders for Samsung Galaxy S4 units from manufacturing partners will reportedly drop 20 to 30 percent in the coming months as third-quarter sales are expected to miss initial projections.
Despite strong sales of low and mid-range handsets, investors worry that Samsung will face thinning margins and a drop in overall growth. One potential factor is the Korean company’s decision to dilute sales of their flagship phone by offering lower-priced variants such as the Galaxy S4 Mini and Galaxy S4 Active.
Samsung has painted a much different outer-facing picture, publicizing sales figures for the Galaxy S4 prominently. As of Friday, however, stock values closed at their lowest in four months.