Samsung slides equivalent of Sony as Galaxy S4 sales disappoint

“Samsung Electronics Co. (005930) lost $25.3 billion in market capitalization last month, more than the value of competitor Sony Corp., as sales of its flagship Galaxy S4 smartphone fell short of investor expectations,” Jungah Lee reports for Businessweek.

“Since the handset was released April 26, the company that sells nearly one of every three mobile phones has plunged 10.8 percent as JPMorgan Chase & Co. and Morgan Stanley lowered sales forecasts and cut profit estimates,” Lee reports. “Fifteen analysts cut second-quarter net income estimates for Samsung in June, according to data compiled by Bloomberg. The company declined to comment on its share price and S4 sales.”

Lee reports, “Samsung shares declined 12.7 percent last month, the most since May 2012. Apple placed orders with Taiwan Semiconductor Manufacturing Co. for processing chips, the Wall Street Journal reported, citing an unidentified company official at TSMC. The move is part of Apple’s shift away from relying on Samsung, according to the newspaper.”

Read more in the full article here.

MacDailyNews Take: Karma.

21 Comments

  1. In other news, Apple’s flagship device the iPhone 5 continues to sell in the millions each month nearing a year after its unveiling, yet the company has shed the equivalent of Microsoft over the same time frame.

    1. yet the company has shed the equivalent of Microsoft over the same time frame.

      I assume you meant AAPL, not Apple. The two are different things of quite different values. Apple continues to thrive. AAPL continues to be hammered by Apple Bear Bullshit.

  2. Samsung is poised for a rude awakening. The screwed and lost their main R&D lab that was also subsidizing their gig and lost billions in sales with billions more pending in patent disputes. They have NOTHING of value that HTC or Sony doesn’t have, and depend and hold their dear life and livelihood on Google which now owns Motorola.

    Can anyone seriously believe things will end up well for Samsung? The Next Big Thing in finicky world of Android will be coming from Motorola and Samsung will be fishing with HTC, This is beyond a doubt.

    You do not need to be an soothsayer with an MBA or an “analyst” to see things will not end well for Samsung. They completely screwed the pooch by what they did to Apple, the one who was subsidizing them so completely. They rely too much on Google. Screwing people usually ends with the favor being returned.

    So in the next few years we will see Samsung on par with HTC, and Motorola via Google scoot Sammy out of the way of making of profits. This is all too plain to see …unless you work in Wall St of course..

    1. RP said:
      “The Next Big Thing in finicky world of Android will be coming from Motorola”

      Are you kidding???? Moto? They have been spiraling down the bowl for years (the acquisition by google hastened their demise) Sad what happened to a once proud, company but they wrote their own epitaph, they are little more than a OEM for Verizon now (and a bit player at that)) No, you won’t hear much from Moto in the future (except about their next custom Verizon phone, which won’t sell well (like the last 5 or 6 models of “droids”)

      Android, I think, will die with a whimper not a bang, 10,000 different PacRim brands, spotting 10,000 different versions of “android” in a race to the bottom. Has been happening for a couple years now (the only way samsung can get its sales number up was to severely discount and then count on “incentives and kickbacks from partners to drive profits. That’s just not a workable long term plan (just ask Mikey Dell;-))

      1. Nonsense. Google doesn’t mess around. They throw money around with a purpose. They are doubling down and applying a skunk-works approach their phone development.

        1. You are deluded, google is a one trick pony, their R&D is similar to apple’s in the late 80’s and early 90’s; all over the board and mostly pie in the sky nonsense.
          Motorola sadly has died but google has hollowed it out and stuffed it full of nonsense, spin and icecream sandwiches.
          Google does as well as it does (and can afford beaucoup silly, pie in the sky R&D projects) because it’s one trick pony is (for now) a big cash cow.

        2. Hehe I was just reading a Daniel Erin Dilger story and thought this snippet might enlighten you (or not your choice) you can read the entire thing on his site or AppleInsider

          “Google even spent $12.5 billion to acquire Motorola, the leading Android hardware failure, to prove that Microsoft’s Zune strategy doesn’t work even if you buy the Toshiba behind it. After the failure of Google’s Android 3.0 Honeycomb and Motorola’s Xoom in 2011, Google set out to more closely copy the Zune in a loose partnership with Asus to bring the Nexus 7 to market in 2012. That didn’t magically result in a iPad style success either.

          The only other way Google could pursue a more Zune-like strategy is by going “Zune HD” and bringing substantial work inside to deliver a new tablet product targeting the iPad years after it first became established. Google is due to release exactly that next year under its X brand. “

  3. The S 4 is not Samsung’s best work. Still cheap and plasticky although they did improve the buttons. Touchwiz is just awful now with features that barely work and take up space and cause lag. Also the screen is almost unusable outdoors. My guess is there have been a lot of returns. The HTC One is a better Android flagship device.

    1. I totally agree the HTC One deserves to take the Galaxy for breakfast and though I will be crucified for saying it, looks better and more modern than the iPhone too. In tests recently it also out performed the Galaxy. I think Samsung will get a hit eventually, its already piling in innovation good and mostly bad as if there is no tomorrow and they will themselves be copied by cheaper manufacturers who offer as much or even more crap ‘innovations’ for less.

  4. Yes Karma is a Bitch. First it Blackberry, now is Samsung who is next Microsoft with smartphone sales that do meet investor expectations. This beg the more important why is Apple not with a Hell of a lot more?

  5. Samsung, sorry I meant ScamStung, wants to sell to the high end market. But darn, the high end market has figured out that Samsung remains nothing more but a purveyor of second rate crap.

    Gotta stick to that low end market Samsung, sorry I meant ScrapeScrap. 😯

    1. Lets not get too excited you are viewing things in a very UScentric way here. Outside of that market Samsung are selling almost as many high end phones as Apple, ignoring all the cheap crap. They are taking hits to sell them cheaper than iPhone thats for sure but don’t underestimate the appreciation their products have for now. i think they will suffer longer term as competitors do to them what they did to Apple but for some time yet they are doing worryingly well its the bar they are setting in expectation which is hitting them as it did Apple. The difference is as long as Apple pull their finger out they have a strong, and loyal user base. Any droid has no such luxury as teh PC market has shown.

      1. UScentric fur shur. Add to that my POV that Samsung is a parasite, mimic company with little to offer in terms of innovation, and therefore little to offer in terms of competition. Historically, that’s a path of self-destruction. Hurray, but I’d rather have Samsung’s downfall documented properly rather than have them FUDed to death as is currently being attempted against Apple. Equally, I don’t want bogus HYPE vomited into the mix either. I’m kind of honest that way. Pulling dirty tricks against dirty tricksters is fun and all. But when the trolling is set aside, I like professionalism to prevail. – But I rant. Time for my tea!

  6. Poor Samsung. Maybe they should make a cheap, plastic clone of the iPhone and sell it with a gimmicky bigger screen! Yeah, this will sell like crazy! I like my stra-gerety, I like it a lot!!

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