Andre Yoskowitz
7 Jun 2013 18:02
Samsung's stock fell 7 percent today following multiple reports that sales of its new flagship Galaxy S4 have slowed.
The reports also highlighted the fact that Samsung recently introduced two other models of the S4, which should hurt their profit margins due to a lower price tag.
Despite becoming Samsung's fastest selling device right after it launched in April, sales have slowed considerably, say analysts. "Sales of high-end handsets are lagging behind expectations, while low- to mid-end handsets are selling briskly worldwide," noted Kim Young-chan, an analyst at Shinhan Investment Corp. "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."
Altogether, the drop accounted for a loss of $12 billion in the company's market value.