Samsung has lost $12 billion of market value in August alone, on top of $44 billion losses since April

Samsung has lost $12 billion of market value in August alone, on top of $44 billion losses since April
Samsung announced its Galaxy Note5 and S6 edge+ phones a little bit earlier this year, aiming to steal the show from Apple's upcoming September 9 event, as well as the just-started IFA 2015 trade show in Berlin. The high-end duo is already on the market and if some of the more recent reports are to be believed, the Note5 and the S6 edge+ are effectively outselling the Galaxy Note 4 and the Note Edge in Samsung's homeland, South Korea. 

Unfortunately, this might not be a sign of a very bright future for the company. Samsung Electronics' stock prices have been on the decline since April (when the Galaxy S6 and S6 edge got launched), causing a market devaluation of $44 billion. This August alone, they've fallen 8.1%, which led to a pretty serious market devaluation for the South Korea-based giant. It's said that Samsung has lost some $12 billion of market capitalization last month due to its plummeting stock prices. Ouch.

If you're wondering what's been the bane of Samsung's stocks during the past year or so, look no further than the numerous Chinese manufacturers that are trying to take all fronts of the smartphone market by storm, as well as Apple, which is effectively domineering the topmost tier of the market with its iPhones. 

As the likes of Xiaomi, Meizu, Huawei, ZTE, Vivo, and Lenovo are highly unlikely to become less aggressive and competitive, while it's just a week before Apple shows us what it's been working on during the past year the iPhone 6s and 6s Plus — it's somewhat hard to imagine that Samsung's financial status quo will suddenly begin to improve. Given that Samsung probably won't unveil a new high-end batch of phones until early next year (probably the Galaxy S7), it's safe to expect that the unfortunate stock prices slump will continue to be on the menu and cause some woes for Samsung.


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50 Comments

1. neela_akaash

Posts: 1239; Member since: Aug 05, 2014

Note 3 days were great for Samsung...

2. Tommy1960i

Posts: 144; Member since: Oct 11, 2013

Giving away phones for test drives and stuff, heavy marketing campaigns etc. They are quite DESPERATE I think.

13. Well-Manicured-Man

Posts: 688; Member since: Jun 16, 2015

Yes they are desperate and there is nothing they can do against it. There are simply too many good Android handset makers (LG, Sony, Lenovo, Xiaomi, Huawei). And Samsung has only hardware competency to differentiate itself from the competition but all of the competitors use more or less the same hardware. In other words, Samsung failed to build up a loyal customer base.

3. wando77

Posts: 1168; Member since: Aug 23, 2012

I feel sorry for samsung. They release the best phones this year by a long shot and still apple dominates in sales. What is wrong with people?

4. Tommy1960i

Posts: 144; Member since: Oct 11, 2013

People just love Apple's ecosystem.

26. cdm283813

Posts: 424; Member since: Jan 10, 2015

Sorry but it's always been Apple vs Android; not Apple vs Samsung. If Samsung dies tomorrow morning there is another OEM to always take it's place.

8. jroc74

Posts: 6023; Member since: Dec 30, 2010

Like with just about any product if you make it decent it creates brand loyalty. For many years Apple has created a decent product that no one really wants to switch from. Word of mouth, using friends, co workers, family phones... Not saying Samsung phones suck but iPhones are a decent product. I almost got one in 2009. Ironically it was the Samsung Omnia 1 that made me almost get it and what made me switch to Android from Win Mo. I thought Verizon service was going bad too....turns out it was all the phone...lol. That Samsung phone almost made me switch carriers.

9. darkkjedii

Posts: 31058; Member since: Feb 05, 2011

There's nothing wrong with people, it's called choice. Why can't you understand that? Most people stay within the eco system they're used to, and have vested in. Techies are the ones who tinker, and experiment...we're greatly outnumbered by the mainstream consumer, which is Apples bread and butter. I own the best phone on the market (Note 5), but let the iPhone 6S Plus have what I want. I'll own it too...What's wrong with me?

19. Kumar123 unregistered

Well said. +1

31. darkkjedii

Posts: 31058; Member since: Feb 05, 2011

Thanx bro. I just don't understand why some people don't understand choice. It's not always about what's best, but what's best to the individual.

10. rd_nest

Posts: 1656; Member since: Jun 06, 2010

Nothing wrong, it's just business. There will be ups and downs. Many small companies are smply competing on price. Many of them might not be able to sustain this price based policy very long. Apple was almost gone at one point. Samsung made a few drastic changes this year, it's obviously will take time to generate the benefits. Once they correct certain mistakes, stocks will again rise. Their fundamentals are very very strong unlike something like HTC. They will remain successful in long run.

15. Well-Manicured-Man

Posts: 688; Member since: Jun 16, 2015

I don't think that Samsung will ever reach its high from a couple of years ago again. I agree that some Android Handset makers will disappear but there are simply too many fishes in the aquarium. Since Samsung can only innovate through hardware and not through software, they are doomed to be one out of many.

24. rd_nest

Posts: 1656; Member since: Jun 06, 2010

Hence touchwiz exists. And hence there will not be a Samsung phone with stock Android. And it's not just hardware, the software experience will also play a big role and they're investing a lot. Few examples: > Stock android had Android Beam to transfer file suing NFC, Samsung modified it with NFC + WiF-Direct and the result is 100x times faster transfer. > Multiwindow > Much better volume customization > Power saving mode > Overall better batttery efficiency with same battery capacity/processor > Swipe to call/message There are tons more, which make the overall experience much different from stock android.

14. bur60

Posts: 981; Member since: Jul 07, 2014

High price good phone, but there are phones with way better price/value

37. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

Samsung has too many competitors in Android world only. Affordable and yet quality phones that too feature rich are coming from Chinese OEMs day by day so price is one concern. Secondly, IMO the iPhone sales were high due to bigger screens means everybody was after them after the release. I think 2015-16 would be crucial years for all OEMs as innovation is stagnant and many OEMs are there to play a vital role. Moreover all are bringing the same thing in the market. Somebody need to stand out from the parade. Right now Apple and Sammy are still on top.

39. Asa17

Posts: 22; Member since: Sep 05, 2014

"They release the best phones this year by a long shot.." Ahem.. Ever hear of "personal preference"? I, for one, despise their slowass UI, it's terribly slow and ugly. On the other hand, I like their camera quality. But it's just not enough to make me buy a Samsung, because the UI is what we're looking at most of the time. It's just that terrible. Also there are lots of other manufacturers creating smartphones that are just as good or even better.

42. Slammer

Posts: 1515; Member since: Jun 03, 2010

Samsung gained mass interest when it retained key accessibilities while others were ditching them. Now that Samsung has joined the others, there is no differential to justify the higher price. Simply put, we can achieve the same limited functions and flexibitlty out of less expensive hsansets. John B.

50. sunjay140

Posts: 118; Member since: Mar 19, 2015

Best phones? Top kek

52. JGuinan007

Posts: 699; Member since: May 19, 2011

Software updates, Apple supports software for it's devices for about 3-4yrs and is not hindered by carriers, unlike Samsung who update software about twice on a flagship device and then it is held up for months by the carriers and even then the carrier could decide the device is EOL and never release the update. This is one major reason people choose Apple especially in the U.S. and if they are buying Apple they aren't buying Samsung

5. fonelover

Posts: 255; Member since: Mar 19, 2015

Samsung needs to reduce their no of models to reduce cost and increase profitability.

6. kevkyle

Posts: 104; Member since: Oct 21, 2012

China's stock market lost more than a TRILLION DOLLARS in August. and it dragged down all major economies around the world. ....Most Tech Companies lost billions, not only samsung...THERE'S microsoft, google, and YES! - BLOOMBERG's Favorite tech Company - APPLE", ) - ....but soon most stocks will improve as soon as China's Stock Market recovers

17. Johnnokia

Posts: 1158; Member since: May 27, 2012

The article referred to a huge loss in a company market cap. This is the company value with its total asset and total equity. Samsung asset is anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have good economic value is considered an asset. Simply stated, assets represent Samsung's value of ownership that can be converted into cash, hence, that decline is a very big problem to them and they need to show a major change to improve. All in all, it is a big long-lasting trouble, and not as simple or temprory issue as you mentioned.

11. brian81

Posts: 68; Member since: Nov 09, 2012

Not only samsung also apple stock decline for the past month but of course this media really like talk about negative news about samsung. http://marketrealist.com/2015/08/apples-stock-continued-decline-past-month/

16. Kumar123 unregistered

Ha ha ha ha.

23. tedkord

Posts: 17357; Member since: Jun 17, 2009

What's funny? Samsung losing $44 billion in market cap since April, or Apple losing $110 billion in market cap in the same period?

30. Ordinary

Posts: 2454; Member since: Apr 23, 2015

Thats the reason Kumar is mad, his shares dropped lol.

43. tedkord

Posts: 17357; Member since: Jun 17, 2009

Then he'll be really burned up that while Samsung lost $12 billion in market cap just during August, Apple lost $48 billion - or more than Samsung has lost since April.

34. SAMSUNG1

Posts: 8; Member since: Apr 24, 2015

U r right Bro.Lol

18. Loubielou

Posts: 603; Member since: Jul 11, 2012

Project Zero from Samsung as been a Total Waste of Time & Money from them,they just had the iPhone users in there minds instead of Pleasing Loyal Galaxy Phone users,Removing the Removable Battery & Micro Sd Card Slots as Back-Fired on Samsung and its been a very Big Mistakes ever made by them,People get so used to these options then all of sudden lose them,people will look for a phone that still offers either One or Both Options,Prices are so High and Phones that are more Breakable because of using Glass is so Wrong Attitude from Samsung,Galaxy S7 will better offer these Best Selling Options or Samsung will be in more Trouble Again

20. brian81

Posts: 68; Member since: Nov 09, 2012

Lol move on, did the note 4 and s5 sell well even they have all those features?

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