Samsung Takes A $12 Billion Hit To Their Market Value Due To Slowing Galaxy S4 Sales


While Samsung is a massive company that sells a lot of handsets, they’ve just had a rather large drop of 6% in their shares which has meant a $12 billion hit to their market value. This comes in part, due to slowing sales of the Galaxy S4 which started out strong but is now leveling out. There is also concern over Samsung introducing new variants of the Galaxy S4 which has caused speculation that they are simply going for market share rather than profits.

Another worry is due to a rumor that Apple could be planning to start an iPhone trade-in program as well as the next iPhone being released that will compete directly with the Galaxy S4. All of these things left Samsung at their lowest stock value since August when they dropped 7% after a ruling that Samsung infringed on Apple’s patents. The entire situation has caused downgrades on their market value as well as causing them to reduce their estimated earnings. Samsung has also slowed orders on Galaxy S4 components due to sluggish sales in both Europe and South Korea.

While a bigger deal may be being made about this than is necessary, it still underscores the fact that Samsung may need to work on their innovation factor a little more. It could also have something to due with how many Galaxy S III’s were purchased last year and consumers simply aren’t upgrading. What are your thoughts on the situation?


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