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