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

Related phones

Galaxy S4
  • Display 5.0" 1080 x 1920 pixels
  • Camera 13 MP / 2 MP front
  • Processor Qualcomm Snapdragon 600, Quad-core, 1900 MHz
  • Storage 64 GB + microSDXC
  • Battery 2600 mAh(17h 3G talk time)

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51 Comments

1. TROLL

Posts: 4851; Member since: Apr 13, 2012

Why make 5 versions of the S4? Should'ev had 2 versions: S4 Nexus S4..... ®

2. Jason2k13

Posts: 1440; Member since: Mar 28, 2013

more choices is not necessarily a bad thing. Lucky i waited a little longer, because i wanted a waterproof S4.

16. Xtasy

Posts: 284; Member since: Jan 13, 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

20. TROLL

Posts: 4851; Member since: Apr 13, 2012

Why the hate Xtasy for Samsung....? I mean every Tech is great by every company: choices= great, or all in one device...?

21. Xtasy

Posts: 284; Member since: Jan 13, 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

36. WHoyton1

Posts: 1635; Member since: Feb 21, 2013

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

37. WHoyton1

Posts: 1635; Member since: Feb 21, 2013

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

23. Xtasy

Posts: 284; Member since: Jan 13, 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

29. cripton805

Posts: 1485; Member since: Mar 18, 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.

51. Trex95

Posts: 2315; Member since: Mar 03, 2013

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

28. cripton805

Posts: 1485; Member since: Mar 18, 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.

47. Taters

Posts: 6474; Member since: Jan 28, 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.

3. tech2

Posts: 3487; Member since: Oct 26, 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.

7. Jason2k13

Posts: 1440; Member since: Mar 28, 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.

12. tech2

Posts: 3487; Member since: Oct 26, 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.

15. Jason2k13

Posts: 1440; Member since: Mar 28, 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?

18. TROLL

Posts: 4851; Member since: Apr 13, 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.....♥

34. number29

Posts: 185; Member since: Jan 25, 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).

48. Taters

Posts: 6474; Member since: Jan 28, 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.

50. tech2

Posts: 3487; Member since: Oct 26, 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.

14. boosook

Posts: 1442; Member since: Nov 19, 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).

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?

5. MrKoles

Posts: 368; Member since: Jan 20, 2013

hahaha wendy, you are absolutely a disaster :D

8. darkkjedii

Posts: 30674; Member since: Feb 05, 2011

Yeah rite flip flopper.

13. medicci37

Posts: 1361; Member since: Nov 19, 2011

Cause your full of bs Wendy.

17. Xtasy

Posts: 284; Member since: Jan 13, 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

38. WHoyton1

Posts: 1635; Member since: Feb 21, 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.....

42. iSometimes

Posts: 57; Member since: Feb 16, 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.

43. darkkjedii

Posts: 30674; Member since: Feb 05, 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.

19. tadaa

Posts: 267; Member since: Apr 18, 2013

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

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