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

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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71 Comments

1. XPERIA-KNIGHT unregistered

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

8. _Bone_

Posts: 2155; Member since: Oct 29, 2012

who ?

22. Insignificant

Posts: 192; Member since: Sep 22, 2012

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

31. Nathan_ingx

Posts: 4766; Member since: Mar 07, 2012

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

36. Googler

Posts: 813; Member since: Jun 10, 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.

63. Potato.

Posts: 607; Member since: Jun 14, 2013

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

2. clevername

Posts: 1436; Member since: Jul 11, 2008

I think worries about samsungs profit margins may be hasty.

10. _Bone_

Posts: 2155; Member since: Oct 29, 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...

43. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

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

66. Dorothy69

Posts: 498; Member since: May 21, 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.

69. ecmedic4

Posts: 520; Member since: May 02, 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.

3. taz89

Posts: 2014; Member since: May 03, 2011

The stock market is a fickle place..

35. bucky

Posts: 3771; Member since: Sep 30, 2009

It is now that its Samsung.

38. taz89

Posts: 2014; Member since: May 03, 2011

Ok :)

4. Cha7520

Posts: 222; Member since: Oct 31, 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.

5. ebubekir26

Posts: 337; Member since: Dec 21, 2012

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

9. Commentator

Posts: 3722; Member since: Aug 16, 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.

13. chaoticrazor

Posts: 2347; Member since: Aug 28, 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

15. alterecho

Posts: 1106; Member since: Feb 23, 2012

4S....S4....hmm....

64. good2great

Posts: 1042; Member since: Feb 22, 2012

hahahaha

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...

67. Notsosuperdave

Posts: 29; Member since: May 15, 2013

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

12. Berzerk000

Posts: 4275; Member since: Jun 26, 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.

17. jdoee100

Posts: 334; Member since: Jun 04, 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.

18. proto

Posts: 59; Member since: Sep 12, 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)

39. Berzerk000

Posts: 4275; Member since: Jun 26, 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.

55. Larry_ThaGr81

Posts: 478; Member since: May 26, 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.

70. ecmedic4

Posts: 520; Member since: May 02, 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.

6. smallworld

Posts: 517; Member since: Jul 13, 2012

Keep dreamin'...

7. jdoee100

Posts: 334; Member since: Jun 04, 2013

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

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