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Now it's Samsung's turn to experience a lost mojo

Posted: , by Alan F.

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Now it's Samsung's turn to experience a lost mojo
A high tech company sees its once booming stock drop, wiping out $20 billion of market value in a week as questions are raised about the continued success of its hugely successful flagship smartphone. If you think that we are talking about Apple, you are dead wrong. The company involved here is Korean based Samsung which has seen its stock drop amongst a number of analyst downgrades.

Woori Investment & Securities, one of the largest investment houses in South Korea, was the first to cut its earnings estimates and stock price forecast back on June 5th. Since then, a number of Wall Street heavyweights have followed suit with Morgan Stanley, JP Morgan and Goldman Sachs all reducing their ratings on Samsung's shares. Sales estimates for the Samsung Galaxy S4 were reduced by as much as 30% as investors starting worrying about lower profits for Samsung's mobile division, the largest contributor to the parent firm's bottom line.

Even though the Samsung Galaxy S4 sold 10 million units in the first month after launch, the phone is said by the Street to lack a "wow-factor" and there are worries about slowing smartphone sales in Europe and Asia. Analysts now see Samsung shipping 7 million units of its Android flagship phone a month instead of the previously expected 10 million phones. Bank Of America Merrill Lynch has cut its annual estimate of Samsung Galaxy S4 sales by 5 million units to 65 million. That cut represents $1 billion of estimated operating profit zapped from Samsung's bottom line.

The top Samsung Mobile executive, J.K. Shin, responded to this by saying, "S4 sales are solid. It's just that some analysts had higher expectations and then they lowered them." Merrill still expects record quarterly smartphone profits thanks to Samsung's strength in other smartphone sectors. Those bullish on the Korean manufacturer are also waiting to see the Samsung Galaxy Note III which should have close to a 6 inch screen with 1080 x 1920 resolution. Will the phablet be enough to perk up Sammy's stock? The shares hit a 6 month low on Thursday before rebounding slightly on Friday.

Samsung's shares hit a 6 month low on Thursday

Samsung's shares hit a 6 month low on Thursday

source: Reuters

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posted on 16 Jun 2013, 17:19 21

1. XPERIA-KNIGHT (unregistered)

Lol I think its time for someone else to lead in this game

posted on 16 Jun 2013, 17:34 1

8. _Bone_ (Posts: 2154; Member since: 29 Oct 2012)

who ?

posted on 16 Jun 2013, 18:29 11

22. Insignificant (Posts: 192; Member since: 22 Sep 2012)

Sony. The arrival of honami is imminent. Here comes the king.

posted on 16 Jun 2013, 18:53 11

31. Nathan_ingx (Posts: 3761; Member since: 07 Mar 2012)

'Insignificant' proof...
I don't think Samsung will go down *snap* just like that.
It might just be momentary.

posted on 16 Jun 2013, 19:12 1

36. Googler (Posts: 813; Member since: 10 Jun 2013)

Looking at the graph, it is momentary. Regardless, they make a wealth of mobile components that are in demand, they can weather a fluctuation like this.

posted on 17 Jun 2013, 05:45 6

63. Potato. (banned) (Posts: 607; Member since: 14 Jun 2013)

May be Sony, HTC or the old King Nokia :)

posted on 16 Jun 2013, 17:20 4

2. clevername (Posts: 1436; Member since: 11 Jul 2008)

I think worries about samsungs profit margins may be hasty.

posted on 16 Jun 2013, 17:40 12

10. _Bone_ (Posts: 2154; Member since: 29 Oct 2012)

I call for regular stock shenanigans. The current quarter will record Samsung's greatest ever, and the Note III hasn't arrived yet, not to mention some interesting variants like the S4 Active that could saturate an entirely different (rugged) market. And then there's next year with flexible displays...

In any case, there is a shift toward the mid-range as the consumers realize there's plenty of quality there, and Samsung is the mid-range king (too) with several offerings from cameraphone to flagship mini and maxi etc.

And then they'll change up design and then those judging by the book will buy Samsung too... so many cards yet to be played by Sammy, no worries...

posted on 16 Jun 2013, 20:00 8

43. Napalm_3nema (Posts: 2184; Member since: 14 Jun 2013)

It's funny that your tune was different when it was happening to Apple, even though they were posting record quarters. Fanboy much?

posted on 17 Jun 2013, 10:22

66. Dorothy69 (banned) (Posts: 498; Member since: 21 May 2013)

I totally agree. Ups and downs are normal in the mobile industry, as long as they don't take a nose dive like Blackberry or sink like Microsoft. Analysts, in general, are just that: 'anal'ists!! Besides, many of them work for Apple so, it's expected that they create volatility in Apple's favor.

posted on 17 Jun 2013, 14:36 1

69. ecmedic4 (Posts: 335; Member since: 02 May 2013)

Wow another Apple bias conspiracy theory. Please provide some actual proof that "many of them work for Apple". Im so sure that the wall street bankers that are mentioned in this article are secretly Apple employee's. Apple haters say some of the dumbest things that it is just amazing. I think if that was true they would be making comments to boast Apple's stock price, but please troll somemore.

posted on 16 Jun 2013, 17:20 3

3. taz89 (Posts: 2014; Member since: 03 May 2011)

The stock market is a fickle place..

posted on 16 Jun 2013, 19:08 4

35. bucky (Posts: 2572; Member since: 30 Sep 2009)

It is now that its Samsung.

posted on 16 Jun 2013, 19:18

38. taz89 (Posts: 2014; Member since: 03 May 2011)

Ok :)

posted on 16 Jun 2013, 17:24 27

4. Cha7520 (Posts: 221; Member since: 31 Oct 2010)

I think Samsung was shocked to see the success of the HTC One and getting the Cell Phone of the year, etc. The HTC One blows the GS4 out the water. Its a truely innovative phone.

posted on 16 Jun 2013, 17:27 16

5. ebubekir26 (Posts: 318; Member since: 21 Dec 2012)

no, we all know the s4 beats the HTC One, so kindly shut up

posted on 16 Jun 2013, 17:36 17

9. Commentator (Posts: 3685; Member since: 16 Aug 2011)

In the same way that the iPhone 4S beat the Galaxy S II, maybe. Samsung is secure in sales for the short-term, but as the article states, the S4 lacks the "wow-factor" of its predecessors. Just as the iPhone 4S was more of a refresh of the iPhone 4, the S4 takes the same design-language of the S3 and adds a few perks. However, just as the Galaxy SII was a revelation for Samsung, the One has proven that HTC isn't quite out of the game yet.

posted on 16 Jun 2013, 17:51 7

13. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)

exactly, perfect comment

i dont think anyone saw the HTC One been as good as it turned out to be, easily on par with the s4 depending on what you look for in your phone. this could be HTC's time to shine if other start getting lazy

posted on 16 Jun 2013, 17:59 4

15. alterecho (Posts: 1098; Member since: 23 Feb 2012)


posted on 17 Jun 2013, 09:29

64. good2great (Posts: 1042; Member since: 22 Feb 2012)


posted on 16 Jun 2013, 18:22 2

20. wendygarett (unregistered)

I have a client that have gs4, it took me half an hour to realise that the client is actually bought new phone, thanks to stupid bulky spidgen cases to hide the beauty on it, I thought it was a note 2 in the 1st place...

maybe that's the reason why people don't buy that, people expect to be asked and praised to have new phone with that kind of price, not be questioned tho...

I'm not sure about the HTC one, I saw once and the phone user make it naked, but in my country, most people are hyping Xperia z and bb z10... And they all naked...

posted on 17 Jun 2013, 11:17

67. Notsosuperdave (Posts: 29; Member since: 15 May 2013)

Um the 4S beats nothing - unless you have nothing- then sell your 4S to help finance your New BBZ10

posted on 16 Jun 2013, 17:49 10

12. Berzerk000 (Posts: 4275; Member since: 26 Jun 2011)

Well, it's all a matter of opinion. Being honest though, HTC really did make a winner with the One. The GS4 might sell more, but HTC really deserves more sales.

HTC completely revamped Sense from a heavy, laggy UI to a light, smooth, and very appealing interface. They also took their design to a whole new level, getting amazing amounts of praise from every single reviewer and gaining the attention of many consumers. They also did what every manufacturer should have been doing, and put very high quality stereo speakers on the front of their phone. They took a different route from the competition and put a 4 MP camera on the One, which gave it industry leading low light performance right up there with the Lumia 920, and focused on optical software to still take great pictures/video all around.

Meanwhile, Samsung just incrementally updated the GS3. Same overall design, just less rounded, with that same terrible hyper glaze coating. Quad core A9 processor and 1 GB RAM, to quad core A15 processor plus 4 battery saving cores and 2 GB of RAM, which struggle to run the bloated software fluidly, yes it can be fixed with an update but it should never have been like that in the first place. As for software, they added a few good features, but most of them were gimmicks that just took up memory, and overall Touchwiz still looked the same.

The camera was one of the only things I was impressed with on the GS4, it does take amazing shots but still falls behind in low light compared to the Lumia 920 and HTC One. The 1080p AMOLED screen is beautiful, but other than that I don't see anything impressive.

posted on 16 Jun 2013, 18:09 1

17. jdoee100 (Posts: 334; Member since: 04 Jun 2013)

HTC did alot of things well with the One, but still made few mistakes like the sense with only two buttons and the low resolution camera (they would have been better off if they had chosen sony's 13 megapixel camera like other flagship phones).
Besides, HTC didn't do too well in april and may. If HTC numbers do not improve significantly in june. They'll stay a niche player in smartphone market, always struggling with profit margins.

posted on 16 Jun 2013, 18:09 1

18. proto (Posts: 59; Member since: 12 Sep 2012)

IMO i can't decide...s4 or One? i will buy 1 of them. i know HTC have that nice frontspeakers...excelent design and much better call quality, but 5 inch screen in more compact body(and it is AMOLED display...and I pesonaly like AMOLED displays more) and better camera...well camera is very important for me and that on S4 is much better (well not in nightshots but normaly i do not make photos in night)

posted on 16 Jun 2013, 19:19 2

39. Berzerk000 (Posts: 4275; Member since: 26 Jun 2011)

It really depends. Do you want all the features of the GS4, or the fluidity of the One? Note: a lot of the features on the GS4 only work in perfect conditions. Smart Pause or Smart Scroll typically don't work very well, sometimes not at all, when you're in a low light environment.

I understand that the GS4 has a more compact body, but that doesn't really help when most of the interface is in tabs. The One is actually the most suited for one handed use. Like the Settings, you have to reach all the way to the top of the screen to find different settings, while with the One you just scroll down. Same thing with the Phone app, with the GS4 you need to stretch all the way up to get to your contacts, call logs, etc. While with the One you just swipe over.

As for AMOLED vs S-LCD, that's a matter of preference. I personally don't mind, I had to switch from an AMOLED display to an LCD when my GS2's display cracked, and honestly I didn't miss AMOLED; you might not miss it either, especially considering S-LCD3 really is amazing, if you haven't seen one I highly recommend it. Now I'm using a GS3, but I still wouldn't mind if I had to switch to LCD, which I probably will because I'm picking up a Nexus 4 soon.

The GS4 has the best overall camera between the two. If night sots aren't your thing, and camera is a main concern, I would lean towards the GS4. The One still takes great shots, but not quite up to the GS4.

If build quality, one handed use, a clean UI, awesome speakers, and a great low light camera is what you want, then get the One.

If a ton of features, a great overall camera, and expandable storage/removable battery are important to you, get the GS4; just know you'll have to deal with a little lag and lack of on board storage because of all those features until Samsung sends out an update.

posted on 17 Jun 2013, 01:47 1

55. Larry_ThaGr81 (Posts: 441; Member since: 26 May 2011)

Don't placed too much emphasis on the night shots because my Note II takes good night shots once you switch the scene to night mode.

posted on 17 Jun 2013, 14:39

70. ecmedic4 (Posts: 335; Member since: 02 May 2013)

Not taking someone elses opinion very well? Maybe for his needs, the HTC One beats the S4, everyone does have different needs/preferences. You should "kindly shut up" and accept that fact.

posted on 16 Jun 2013, 17:29 2

6. smallworld (Posts: 484; Member since: 13 Jul 2012)

Keep dreamin'...

posted on 16 Jun 2013, 17:31 8

7. jdoee100 (Posts: 334; Member since: 04 Jun 2013)

HTC people are so funny. I don't whether to laugh or ignore them.

posted on 16 Jun 2013, 18:33 6

24. alltechinside (Posts: 248; Member since: 21 Apr 2013)

I don't think HTC One blew the GS4 out of the water. They both have their pros and cons.

The main reason why the Galaxy S4 was a disappointment is because Samsung went safe. The design language is too similar and the software wasn't very well optimized (and thats why we see lags). But the phone has a microsd card slot and a removable back to access the battery which might be worth the boring design for some people. They also added a lot of software features which could be useful for some people. Had Samsung tried to get out of their safe zone and tried something new (like a new design), they could have been more successful with the Galaxy S4.

HTC really surprised me with the HTC One. Firstly the design and the build quality. WOW is all I can say. And the front facing speakers are pretty insane. The only small issues I would have is the placement of the power button and the annoying HTC logo on the front. The software was a surprise as well. Every year I hear that HTC "skinned" down their sense software but I always see lag and disappointment until this year. They REALLY did skin sense down the software and it is as smooth as stock android. The only real complain I have with this phone is that this phone doesn't have removable back for microsd card and the battery but some people would rather have a beautiful design over those features.

And for the rear camera on both smartphones, its a mixed bag. HTC One has great low light performance but the resolution is too small (4 MP) while the GS4 has great details in their pictures/videos because of their 13 MP but poor low light performance. For the front facing camera, I prefer HTC One because it is wide angle. But I prefer the camera features on the Galaxy S4.

As for the display, I would say they are pretty even. It really depends if people want LCD or AMOLED. I prefer LCD but it won't really affect my choice of the two.

They both have pros and cons and I would say they are pretty even. I prefer the HTC One because of the build quality and the speakers. Someone else might prefer removable back and microsd card instead of the features that I like. In the end, it's up to what people want.

I am glad HTC is doing well with the HTC One. It'll only bring competition to Samsung and they will try to innovate. We might even see a Galaxy Note III on aluminum (Or at least a good looking design) :D

posted on 16 Jun 2013, 21:01

47. flynfree (Posts: 374; Member since: 09 Jun 2013)

And the upcoming hTc One mini against sgs4 mini, the hTc T6 against sgs note 3. The advantage of Samsung to others is the replaceable battery that you can swap to depleted one, than bringing external battery juice and waiting your phone to charge.

posted on 16 Jun 2013, 21:33

51. pyradark (Posts: 857; Member since: 10 Jun 2012)

Lol, HTC sold 1 Million last month, that is never a success. true the unit itself is a Wow, but sales counts in success like Xperia Z with bad screen, but thanks to its water resistance it hold back S4 success

posted on 16 Jun 2013, 17:46 13

11. darkkjedii (Posts: 21289; Member since: 05 Feb 2011)

Pull this article, if not Samsung fanboys will cry a river. They'll run out, and buy 3 S4's apiece to meet analysts demand. Richard Allen Yarrell will not stand for this.

posted on 16 Jun 2013, 17:53 2

14. Berzerk000 (Posts: 4275; Member since: 26 Jun 2011)

The comment about Richard literally made me lol, well done.

posted on 16 Jun 2013, 18:07 3

16. XPERIA-KNIGHT (unregistered)

That guy was almost as bad as taco lol

posted on 16 Jun 2013, 18:13 1

19. jdoee100 (Posts: 334; Member since: 04 Jun 2013)

It's pretty bad. But i do find it little funny. lol

posted on 16 Jun 2013, 18:45 1

29. Berzerk000 (Posts: 4275; Member since: 26 Jun 2011)

At least taco was relatively civil, sometimes Richard just went in ALL CAPS RAGE.

posted on 16 Jun 2013, 19:43 1

42. darkkjedii (Posts: 21289; Member since: 05 Feb 2011)

I wonder if taco is still among us, just using a different name. Some one said Mxy was taco, but there's no way. Their commentary was way too different.

posted on 16 Jun 2013, 18:27 1

21. darkkjedii (Posts: 21289; Member since: 05 Feb 2011)

I think he's permanently banned, but he has a YouTube channel, where he's just as bad lol.

posted on 16 Jun 2013, 18:44 1

28. Berzerk000 (Posts: 4275; Member since: 26 Jun 2011)

He is permanently banned, then he made an alternate account on here which also got banned. I've seen his YouTube account, maybe he'll get banned from there too

posted on 16 Jun 2013, 19:40 1

40. darkkjedii (Posts: 21289; Member since: 05 Feb 2011)

Lol I think that dude personally wants to kick the crap outta every iOS user. Hopefully his parents use android...for their sakes.

posted on 17 Jun 2013, 05:44

62. Potato. (banned) (Posts: 607; Member since: 14 Jun 2013)

You guys are funny. Lol.

posted on 16 Jun 2013, 18:36 3

25. wendygarett (unregistered)

I remember people laugh apple stock tumble so badly and most of them are Sammy fans... Here's the advice, do not laugh someone fails because deja vu is watching you, every company will faced the shares tumble in the end... Just that deja vu will make it coincident :)

posted on 16 Jun 2013, 19:04 3

33. jdoee100 (Posts: 334; Member since: 04 Jun 2013)

Except it's not their time yet. Stock market is just overreacting(somebody is playing with stock prices), samsung's share price will go back up in no time, unlike Apple's stock price. I'm sure samsung's time will come, but not for awhile.

posted on 16 Jun 2013, 18:31 1

23. MartyK (Posts: 817; Member since: 11 Apr 2012)

I love Android...Every couple of years someone slip and another company takes it place, the changing of the leaders coming up..whooo hoooo :)

posted on 16 Jun 2013, 18:42

26. FlushGordon (unregistered)

With the advent of cheap but very capable China phones...spending $700 on a phone is getting harder and harder to justify

the Premium market is slowly dissolving I guess

posted on 16 Jun 2013, 18:42 1

27. jiezel91 (Posts: 67; Member since: 28 Jul 2011)

And then here I'm thinking Samsung definitely needs to address the long overdue design issue. I'm not saying the Galaxy S4 is downright ugly. It's just that, there's little to no difference in design with the GS3 and GS4.
And please, don't tell me about bezels and screen size. Those are only minor differences design-wise, that is.

posted on 16 Jun 2013, 18:47 5

30. affandi (Posts: 85; Member since: 25 Jan 2013)

This is good news, Samsung got just a little lazy with the S4... but now they feel a slap in their face and a reality check, they are not untouchable after all...

So this should probably mean that they will make sure the galaxy Note 3 indeed has the "Wow-factor" and step it up a bit. If it's not to late by now that is.

posted on 16 Jun 2013, 19:02 1

32. FlushGordon (unregistered)

4 Things they need to do with the Note 3

1. MAJOR Design overhaul (I don't mind pastics tbh, just change the damn design)
2. 32 gigs Minimum storage
3. Front-facing stereo speakers
4. Of course, bigger battery, that's a given

I honestly am not favor for a 6-incher, make the bezel extremely thin and that would be a major plus...since the 1080p resolution is more than enough for Note 2 owners to justify an upgrade

LASTLY, they need to test it well prior to release, the S4 fell short in many areas because (I feel) it is a rushed product

posted on 16 Jun 2013, 19:07

34. Andrewtst (Posts: 633; Member since: 25 Jan 2009)

Samsung never change, S4 sales here also not good, great if Samsung never meet the target as a lesson don't out similar device by recycle it!

posted on 16 Jun 2013, 19:14 3

37. Jason2k13 (Posts: 1214; Member since: 28 Mar 2013)

Before people start thinking this is true, this is just an analyst prediction, once again analyst PREDICTION lol

posted on 16 Jun 2013, 19:42

41. moronman66 (Posts: 162; Member since: 09 Jan 2012)

I wouldn't be worried, It even shows in the chart that it's happened before and they've more than recovered from it. Samsung makes too many products to be kept down for too long, they'll find some way out of it soon...

posted on 16 Jun 2013, 20:29 2

44. jellmoo (Posts: 1590; Member since: 31 Oct 2011)

Honestly, Samsung's dominance is so strong in the Android world that will likely take several missteps on their part, coupled with some serious wins from the competition to really have an effect.

Right now, Samsung has two things they should be mulling over. 1) Their penchant for releasing handset after handset after handset and seeing what sticks. I'm sure that this is having a serious impact on their profits. They are winning the war of units sold, but can'r match the profits of Apple. This should tell them that they need to consolidate better. 2) The Galaxy S4 didn't bring out the wow. It sold well, no doubt, but it was their iPhone 4S. A minor evolution. It didn't do anything all that new or exciting. Can you imagine what the One would have sold if it had the marketing power and product placement that Samsung has?

posted on 16 Jun 2013, 21:07 1

48. Jason2k13 (Posts: 1214; Member since: 28 Mar 2013)

Actually Samsung does not sell millions of phones just by marketing, others include being able to sell their phones in more markets and carrier's around the world. They also have enough supply when theirs a huge demand for it. Samsung also puts more features in a phone which is what people want. If they made HTC One, I think it would make the same sales as their current S4. Reason is because HTC One does not have many features to WoW the public, only 4mp camera which is too small to the non geeky buyer and of course non removable battery and no SD card support however it does have a good design and sound quality.

posted on 16 Jun 2013, 20:38

45. darkkjedii (Posts: 21289; Member since: 05 Feb 2011)

Jay-Z is now with Samsung. This is a good partnership.

posted on 17 Jun 2013, 01:49 3

56. Larry_ThaGr81 (Posts: 441; Member since: 26 May 2011)

Well if they follow the same path as HTC and Dr. Dre, it will be a fail. Hopefully Sammy and Jay Z can do a better job of marketing. The last thing I want to see is some built in "enhanced" sound effects. I can get the same type of enhanced music with PowerAmp.

posted on 16 Jun 2013, 20:39 1

46. Kishin (Posts: 704; Member since: 30 May 2013)

Too many products with the name SG4

posted on 16 Jun 2013, 21:16 4

49. rusticguy (Posts: 2828; Member since: 11 Aug 2012)

So indeed "4" is an UNLUCKY Number for South Koreans.

posted on 16 Jun 2013, 21:31 3

50. pyradark (Posts: 857; Member since: 10 Jun 2012)

I Was Correct!!! hahaha. if sammy continue releasing the same old boring design
they wont last long, even the bloatware didnt save them!!!
face the raging competition with SOny, Nokia and HTC.

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