Galaxy S4 Sales Slump, Wall St. Trims Samsung Rating

For years, the Galaxy S brand from Samsung was perceived as the de facto Android-driven competitor to Apple's iPhone. That market leadership is now officially gone, as sales of Galaxy S4 are on a slump. Several factors contributed to it, and Wall St. appears to agree with each one of them.

To begin with, Galaxy S4 is a product of Samsung getting complacent with its market leadership. Its dull and uninspiring plasticky design are little match to the innovative designs of the new breed of Android flagship smartphones, such as the aluminum-clad beauty that is HTC One, and the refreshing new Sony Xperia Z, which can bear spills of your liquid refreshments, or clumsy poolside manner. As if the design of Galaxy S4 wasn't dull enough, Samsung didn't even let it stay unique. The company created countless cheaper models that look exactly like the Galaxy S 4, and that has taken the sheen off its design.

With its marketing magic-dust beginning to wear off on people, sales are beginning to slump, to the extent that unforgiving market hawks are beginning to cut sales estimates of the device, and with it, outlook of Samsung Mobile stock. Woori Investment & Securities, one of Korea's biggest securities and exchange firms, cut its outlook for Samsung's earnings and target share price on June 5. Firms from across the pond in New York, including JP Morgan, Morgan Stanley, and Goldman Sachs, are reportedly each making reviews of their estimates of the impact Galaxy S4 would have on Samsung Mobile stock. Sales estimates of the Galaxy S4 are slashed by as much as 30 percent, for now.

"Investors in the South Korean IT giant have paid dearly. Samsung lost nearly $20 billion in market value in a week as shares plunged following the downgrades," writes Miyoung Kim for Reuters, reporting from Seoul.

Samsung managed to sell 10 million units of the Galaxy S4 in April-May, the first month following its launch, beating the first-month sales of Galaxy S 3, but sales have since slumped.

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Source Reuters
Channels Business, Phones
Topics Samsung, Galaxy S IV, Galaxy S 4, Sales, Market Performance
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