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Worries that Samsung might have diluted Galaxy S4 sales result in $12 billion loss in market value

Worries that Samsung might have diluted Galaxy S4 sales result in $12 billion loss in market value
The Samsung Galaxy S4 is clearly the most popular Android smartphone to date - it sold a whopping 10 million devices within the first month of availability. However, analysts are now increasingly worried that with the launch of many S4 derivatives like the Galaxy S4 Active the S4 message is diluted and margins are driven lower. And now investors have started reacting to the news as Samsung Electronics lost a whopping $12 billion of its market value.

With the launch of more affordable devices in the mid and low end segments Samsung is going for volume, but analysts are worrying this will take a toll on profits. On the positive side, more affordable devices will be a good countermeasure against rising powerful Chinese mid-rangers.

Also, Apple, Samsung’s main rival company, is expected to soon launch a trade-in program allowing users to exchange old iPhones for newer models, and this is also seen as a serious threat to Samsung mobile devices.

Credit rating agencies like Fitch have a high A+ rating for Samsung stock, but do not plan to upgrade it further as they are looking for signs from Samsung to clear concerns about its big dependence on the volatile consumer electronics market.

source: Reuters

51 Comments
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posted on 07 Jun 2013, 07:54 19

1. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Why make 5 versions of the S4?

Should'ev had 2 versions: S4 Nexus S4.....
®

posted on 07 Jun 2013, 07:57 19

2. Jason2k13 (Posts: 554; Member since: 28 Mar 2013)


more choices is not necessarily a bad thing.

Lucky i waited a little longer, because i wanted a waterproof S4.

posted on 07 Jun 2013, 08:48 8

16. Xtasy (Posts: 270; Member since: 13 Jan 2013)


More choices of the same garbage is a bad thing.. Look what Blackberry is doing now. You got the Z10, Q10, A5, Z5 and slider models should be coming out soon too.. Not only are these models way better than the S4 they are also more durable.. 700 for an S4 which in my opinion is only worth maybe 150 is a huge rip off.. Samsung only knows how to make great screens, TV's and that's what they should stick to

posted on 07 Jun 2013, 08:54 9

20. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Why the hate Xtasy for Samsung....?

I mean every Tech is great by every company: choices= great, or all in one device...?

posted on 07 Jun 2013, 09:02 7

21. Xtasy (Posts: 270; Member since: 13 Jan 2013)


Because the S4 phone has false advertising. My friend has the S4.. The features on them are worthless. He turned them all off otherwise the phone lags like crazy and what's the point of keeping them on if they are worthless? On top of that it's made very cheap. The 8 MP camera on my BB Z10 is better than the 13 MP on his S4, the pics on the S4 come out blurry and looks more like a 4 MP(The Z10 has an amazing editing software for photos and videos which is a huge plus)... are u Fin kidding me? this phone is a joke. All u fools fall for advertising instead of picking and choosing for yourselves.. Just cuz your friend has an S4 doesn't mean u have to go out and get one.. IT SUCKS! lol The only nice thing is the screen cuz Samsung is good with screen like I said

posted on 07 Jun 2013, 13:13 5

36. WHoyton1 (Posts: 1618; Member since: 21 Feb 2013)


You are the biggest load of bs ever just go back to your cave troll, idiot......

posted on 07 Jun 2013, 13:14 6

37. WHoyton1 (Posts: 1618; Member since: 21 Feb 2013)


And so in your opinion the BB Z10 is better than the samsung s4.................i ........i am lost for words..........

posted on 07 Jun 2013, 09:09 5

23. Xtasy (Posts: 270; Member since: 13 Jan 2013)


Even the Auto-brightness is absolutely horrible on the S4.. Go get a Blackberry Z10 and try it out for 2 weeks and u will see the differences.. You won't even know how to open the phone from sleep mode and that's cuz u are stuck generations behind with the home button lol

posted on 07 Jun 2013, 10:48 6

29. cripton805 (Posts: 907; Member since: 18 Mar 2012)


Sure buddy. Keep thinking you BB is better. Yawn. BB is not even something Android or Samsung is worried about right now. They're not even worried about Windows. Their focus was on Apple.

posted on 09 Jun 2013, 01:21

51. Trex95 (Posts: 521; Member since: 03 Mar 2013)


Unfortunately even great screen Samsung not anymore the best after LG, Sony and Sharp release the latest screen tech.

posted on 07 Jun 2013, 10:44 3

28. cripton805 (Posts: 907; Member since: 18 Mar 2012)


Too many choices inst a bad thing for the consumer, its a bad thing for the company. Basically, it costs a lot of money to make all those different variants. It becomes a competition to its own company. If it sells too many regular S4's, the active and mini flop, etc... Which ends up costing the company millions or billions in marketing, making, legalizing, patents, permissions, etc... for the phones that didnt sell well to its own product.

This is why Apple is very careful about the products it releases. It cant compete with it self. Unfortunately this is why they failed as well because they decided to stay safe and keep from making too many rsdical changes.

posted on 07 Jun 2013, 23:50 1

47. Taters (Posts: 2395; Member since: 28 Jan 2013)


That is where their strengths lie though. They are a manufacturer at heart. Their business depends on the ability to make anything a company wants to order.

If you stop diversifying products, you lose that experience and edge and become one dimensional like Apple.

posted on 07 Jun 2013, 07:57 11

3. tech2 (Posts: 1335; Member since: 26 Oct 2012)


There is no problem with so many versions of phones. But they could've atleast named them differently so that an average joe could comprehend.

Plus a Galaxy S4 user can't really differentiate his premium and expensive phone from rest of the phones.

posted on 07 Jun 2013, 08:13 2

7. Jason2k13 (Posts: 554; Member since: 28 Mar 2013)


so your gonna hate a brand, because they added too many "S4" in a name? I don't think the average Joe will care what name samsung puts on it, they will worry more about the design and features over the name itself.

And people who own an s3, s4 or note users etc. can differentiate their phones with the rest cause I surely can, but the point is if your happy with your phone, then you shouldn't need to worry about what phones other people have.

posted on 07 Jun 2013, 08:30 3

12. tech2 (Posts: 1335; Member since: 26 Oct 2012)


Firstly, I never said I hate Samsung for GS4 thats your inference not my implication. BTW, I've currently ordered a GS4 for myself so...

Secondly, its 'Galaxy S3' and 'Galaxy Note 2' they are completely different in names unlike GS4, GS4 mini and GS4 Active. Plus they were released almost 6 months apart. See my point ?

Also, imagine an average joe walking into a store and asking for GS4 but get baffles when Sales rep replies, which one ? as there are 3 different kind.

Lastly, your remark about being happy and all is completely irrelevant to the topic or discussion.

posted on 07 Jun 2013, 08:47

15. Jason2k13 (Posts: 554; Member since: 28 Mar 2013)


Like i said people dont really care about names, we don't really need to argue about that.

When you go to a phone store, how many S4 or S3 types do they really sell? I can assure you allot of stores wont sell all of them at once. Also 3 different type of phones is not alot is it? It's easy to explain the main difference in such short time, S4 mini (small phone, cheaper) S4 active (water proof) S4 (great all rounder phone but expensive) thats not too hard to chose?

About the last part, you mentioned "the user cant really differentiate his premium and expensive phone against the rest", so your talking about looks now?

posted on 07 Jun 2013, 08:51 2

18. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Those pathetic analysis always making exzemptions....

But tue having a phone with 5 versions will suit everyones need, which was a great idear by Samsung. I mean just look at cars, Pcs, Laptops you have choices.....♥

posted on 07 Jun 2013, 13:03

34. number29 (Posts: 129; Member since: 25 Jan 2013)


Samsung itself doesn't even need to offer so many models as there are literally dozens from other manufacturers. It's not just a choice between the S4, S4 Active or S4 mini, it's a choice between all of the above, and all of the rest (Xperia, One, Optimus, iPhone, Lumia, etc etc etc).

posted on 07 Jun 2013, 23:54

48. Taters (Posts: 2395; Member since: 28 Jan 2013)


I think you idiots are going to far. Sure you hate Samsung but its quite obvious that a GS4 is much much higher quality than something like the ACE 2. Light years of difference and if you can't feel difference, then I'll just have to label you as a hopeless individual that cannot separate density with quality. Those are two very different things.

posted on 08 Jun 2013, 06:12

50. tech2 (Posts: 1335; Member since: 26 Oct 2012)


The most annoying part is when some idiot thinks he is talking sense.

Did you read my comment ? I love Samsung and currently own GS4 ?.......and who said something about Ace2 the discussion is about Galaxy S4 and other similarly named products like GS4 Active, Mini, normal, etc. and of course i know and feel the difference we are talking about an average joe here.

posted on 07 Jun 2013, 08:40

14. boosook (Posts: 778; Member since: 19 Nov 2012)


for example, I would never buy the gs4 but I'm considering the s4 mini, so more models means more potential buyers. Those analysts are silly, imho. The targets are different: thinking that a person that buys the s4 mini or s4 active would have bought the s4 instead denotes a low understanding of the mobile market. The truth is that samsung will sell as many s4 as before, PLUS they will sell a number of s4 mini and active. I would definitely keep my samsung stocks (if I had any).

posted on 07 Jun 2013, 07:58 10

4. wendygarett (unregistered)


I don't see and worries on it, coz I'm going to get both s4 and s4 active in the same time, with the 64gb version of course, not to mention, I also decided to get galaxy mega 6.3 and the upcoming note 3 as well, how does that a bad news to Samsung?

posted on 07 Jun 2013, 08:00 8

5. MrKoles (Posts: 278; Member since: 20 Jan 2013)


hahaha wendy, you are absolutely a disaster :D

posted on 07 Jun 2013, 08:13 3

8. darkkjedii (Posts: 9321; Member since: 05 Feb 2011)


Yeah rite flip flopper.

posted on 07 Jun 2013, 08:40 2

13. medicci37 (Posts: 554; Member since: 19 Nov 2011)


Cause your full of bs Wendy.

posted on 07 Jun 2013, 08:51 4

17. Xtasy (Posts: 270; Member since: 13 Jan 2013)


Hahaha what a loser... S4 is already a complete waste of money and u will be getting 2 of the same thing. You are a sad case

posted on 07 Jun 2013, 13:16 3

38. WHoyton1 (Posts: 1618; Member since: 21 Feb 2013)


Dude just stfu nobody gives a damn about what comes out of your BB and BS mouth so just go away! S4 is a brilliant phone....even WP and iOS users think so......so just stfu.....

posted on 07 Jun 2013, 16:27

42. iSometimes (Posts: 42; Member since: 16 Feb 2011)


The S4 is a very good phone, no doubt. But you have to admit that most of the features are gimmicky and take away a lot of the space available on the phone. if one does not add microSD cards. And they do take a toll on the battery. I would have to give the upper hand to the 32 GB model of the HTC One. I think HTC really made a better phone this year. If they had added microSD and removable battery, I think they would've beaten the S4.

BB Z10 is a good phone, its just that BB is playing catch up now. Some features are great, but as an overall package, the other phones would be better.

posted on 07 Jun 2013, 17:37 1

43. darkkjedii (Posts: 9321; Member since: 05 Feb 2011)


This iOS user certainly thinks so. Along with the note 2, ip5, and the One...the S4 is about as good as it gets.

posted on 07 Jun 2013, 08:53 2

19. tadaa (Posts: 180; Member since: 18 Apr 2013)


Can't they just ban you, like, permanently?

posted on 07 Jun 2013, 09:34 4

26. wendygarett (unregistered)


Why are you so anti-samsung?

posted on 07 Jun 2013, 09:45 5

27. darkkjedii (Posts: 9321; Member since: 05 Feb 2011)


Anti Wendy cuz you're a virus

posted on 07 Jun 2013, 13:18 2

39. WHoyton1 (Posts: 1618; Member since: 21 Feb 2013)


im actually starting to think its pretty funny....just laugh at him and dont reply to him then he will go away...i just look at the wendygarret name to slide swiftly onto the next post whilst generally chuckling to myself....

posted on 07 Jun 2013, 17:38

44. darkkjedii (Posts: 9321; Member since: 05 Feb 2011)


Yeah you're rite bro.

posted on 07 Jun 2013, 12:44 1

33. johnriii (Posts: 220; Member since: 17 Oct 2011)


wow, you must be like, filthy rich.

posted on 07 Jun 2013, 13:09 1

35. quakan (Posts: 1081; Member since: 02 Mar 2011)


Nah, just a bullish***er. Wendy is just trolling and isn't buying all of those phones.

posted on 07 Jun 2013, 08:04 7

6. jdoee100 (Posts: 271; Member since: 04 Jun 2013)


They've been saying this since S3(mini, other galaxies,etc), and S3 did just fine.

posted on 07 Jun 2013, 08:15 6

9. Jason2k13 (Posts: 554; Member since: 28 Mar 2013)


ever since the first galaxy s in 2010 came out, they also made galaxy s advance and galaxy s plus... and Samsung is still going strong to this day.

posted on 07 Jun 2013, 08:17 6

10. _Bone_ (Posts: 2067; Member since: 29 Oct 2012)


Lol I like this US media creation. The S4 is the most selling smart phone AND they are going to sell more affordable good devices AND the Note line-up.

posted on 07 Jun 2013, 08:25 2

11. nofear (Posts: 147; Member since: 22 Jun 2012)


PA has been try very hard.

posted on 07 Jun 2013, 09:06 2

22. wumberpeb (Posts: 406; Member since: 14 Mar 2011)


I'm not big into corporate credit ratings, but can you get higher than an A+?

posted on 07 Jun 2013, 09:23 2

24. ryq24 (Posts: 444; Member since: 17 Oct 2011)


$12billion!!! Ouch! That gotta hurt!

posted on 07 Jun 2013, 09:29

25. Carlitos (Posts: 265; Member since: 23 Oct 2011)


I mean it worked with the S3 with Ll of its variants. Why not with the S4?

posted on 07 Jun 2013, 11:39

30. verbalize (Posts: 67; Member since: 03 May 2013)


Lol..... Samsung knew that it was a below par phone and that's why the flooded the market at the same time. All you clowns who were saying 10 million phones in the first month . It's a hit... If you know how it works the first numbers and you flood the market you will have a lot sold. But when it drops that bad after the first month. You have a looser of a phone.

posted on 07 Jun 2013, 12:05

31. speckledapple (Posts: 877; Member since: 29 Sep 2011)


Samsung is starting to make a mistake that HTC made with all its different versions. They should try and straighten it out with strong brand presence.

posted on 07 Jun 2013, 12:21

32. Whateverman (Posts: 3162; Member since: 17 May 2009)


I agree. Adding some many different versions is a huge mistake. Look at the Evo. By all accounts it was a fantastic phone. Then came Evo 3D, Evo Design (What?), Evo 4G LTE, then a year later the make the worst version of the Evo and called it the Thundebolt. This looks the road Samsung is going down right now. Hopefully they'll listen to what the market is saying and start renaming these other devices.

posted on 07 Jun 2013, 17:41 2

45. darkkjedii (Posts: 9321; Member since: 05 Feb 2011)


Totally agree. I think the galaxy line should be more exclusive, like top notch luxury just in tech. Keep galaxy for the flagship phones, and notes. Everything else should just be Samsung.

posted on 07 Jun 2013, 16:04

40. ATechfull (Posts: 1; Member since: 07 Jun 2013)


Who is saying this?
"Also, Apple, . . . soon launch a trade-in program . . . and this is also seen as a serious threat to Samsung . . ."

That is a delicate line for Apple, so many Apple iPhone users pay full price for new devices every time they come out. I cannot imagine what they can offer, that will not hurt them as much as help. And I cannot see how that is even a minimal threat to Samsung. Who is saying it is a 'serious threat'?

posted on 07 Jun 2013, 16:26 3

41. JMartin22 (Posts: 647; Member since: 30 Apr 2013)


It really is stupid and pointless. As much as I consume into Samsung products. One main version and one condensed mid-ranged version was all that was needed. You have: S4/S4 Active/S4 GE/S4 Mini/S4 Zoom as well as all these crappy, pointless mid-ranged phablets Galaxy Mega 5.8/6.3

posted on 07 Jun 2013, 20:40 2

46. masterpogi6 (Posts: 11; Member since: 04 Jun 2013)


Iphone is still the monster after all :D

posted on 08 Jun 2013, 01:15 2

49. dc0321 (Posts: 22; Member since: 21 Nov 2012)


Samsung=Samedesign :-\

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