Story image

Samsung stock wiped following slow S4 sales

11 Jun 13

Following an explosive start, Samsung has lost US$12bn stock as Galaxy S4 sales look set "to disappoint."

Despite selling one every second since releasing the product in April, the South Korean company has seen shares fall 6.2% as demand for the device slows down.

Falling the most in over nine months, analysts JPMorgan Chase & Co cut its share-price estimate for Samsung by 9.5%, subsequently lowering its 2014 earnings predictions by 9%.

“Compared to S3, S4 had stronger momentum in the first quarter of launch,” the analysts reported.

“But the following quarter’s shipment is expected to be disappointing and its peak-quarter number seems way below our previous estimates.”

As a result, Samsung is now expected to shift 60 million this year, down 20 million from previous predictions.

The news is in stark contrast to reports two weeks ago, when Samsung confirmed channel sales of its smartphone has surpassed 10 million units sold in less than one month after its commercial debut.

“On behalf of Samsung, I would like to thank the millions of customers around the world who have chosen the Samsung Galaxy S4,” said JK Shin, CEO and President of the IT & Mobile Communications Division, Samsung last month.

Sales of the previous model, the Galaxy S3, reached the 10 million mark 50 days after its launch in 2012 however, while the Galaxy S2 took five months and the Galaxy S seven months to reach the same milestone.

Should Samsung be worried by the loss of S4 momentum? Tell us your thoughts below

InternetNZ welcomes Govt's 99.8% broadband coverage plan
The additional coverage will roll out over the next four years as part of the Rural Broadband Initiative phase two/Mobile Black Spots Fund (RBI2/MBSF) programme expansion.
Dr Ryan Ko steps down as head of Cybersecurity Researchers of Waikato
Dr Ko is off to Australia to become the University of Queensland’s UQ Cyber Security chair and director.
Radware joins Chillisoft’s expanding portfolio
The cloud DDoS prevention, app delivery controller, and web app firewall expert is another step toward a total enterprise security portfolio.
Commerce Commission report shows fibre is hot on the heels of copper
The report shows that as of 30 September 2018 there were 668,850 households and businesses connected to fibre, an increase of 45% from 2017.
Wearables market flourishing - fuelled by smartwatches
A market that has stuttered in the past now has a bright forecast as adoption of wearable technology continues to thrive.
The tech that helped the first woman to sail around Australia
Lisa Blair used devices from supplied by Pivotel to aid her in becoming the first woman to circumnavigate Australia non-stop.
Why there will be a battle for the cloud in 2019
Cloud providers such as AWS, Azure, and Google will likely find themselves in a mad scramble to gain additional enterprise customers.
WLAN market picks up thanks to high-end products
Dell’Oro Group have released a report showing that the WLAN market picked up in 2Q18 as 802.11ax saw its first shipments.