Samsung’s Galaxy S4 Slowing Sales Worry Investors
Samsung‘s stock price dropped 6% on Friday, erasing $12 billion in marketing value as investors fretted about the company’s smartphone strategy.
In particular, Samsung’s decision to offer stripped-down versions of its Galaxy S4 worried analysts and investors who think the move may eviscerate profit margins. Sales of the S4, initially Samsung’s fastest-selling smartphone, have also fallen off since the device’s introduction in April.
“Sales of high-end handsets are lagging behind expectations, while low- to mid-end handsets are selling briskly worldwide,” Kim Young-chan, an analyst at Shinhan Investment Corp., toldReuters. “As the portion of low- to mid-range handsets is expected to increase in Samsung’s overall mobile phone business, this has also sparked concerns about thinning margins and lower growth.”
J.P. Morgan analyst J.J. Park…
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