“Samsung Electronics Co. slumped a second day in Seoul, pushing the loss of market value for the world’s biggest smartphone maker [by unit share, not profit share – MDN Ed.] to $15 billion since posting its smallest profit in two years,” Jungah Lee reports for Bloomberg. “The stock has dropped 7.4 percent, wiping off more than the market value of Korean rival LG Electronics Inc. (066570), since Samsung yesterday reported earnings that missed analyst estimates, with profit falling 18 percent on stagnating phone shipments.”
“Samsung’s dominance is under threat as Apple Inc. lures high-end buyers and Chinese vendors including Xiaomi Corp. and Huawei Technologies Co. attract budget consumers with feature-packed devices at lower prices,” Lee reports. “The maker of Galaxy smartphones, which has about $58 billion of cash, was the only one of the top five producers to post lower shipments in the June quarter as its market share shrank 7.4 percentage points, according to data from Strategy Analytics.”
“Shares of Samsung fell 3.8 percent to 1,292,000 won today. The stock has dropped 5.8 percent this year, compared with a 3.1 percent advance in the benchmark Kospi index, of which it’s the largest component. That’s the company’s biggest two-day drop in almost two years,” Lee reports. “Samsung’s market share fell to 25.2 percent in the June quarter, with Apple retaining second place and Huawei, Lenovo Group Ltd. and Xiaomi filling the next three spots, respectively, Strategy Analytics said yesterday. Samsung’s lead in the market for screens larger than 5 inches, which it pioneered with its Note devices, faces a new threat from Apple, which is said to be preparing iPhones with larger displays.”
Read more in the full article here.
MacDailyNews Take: Sweet, sweet Karma. A toast to you is coming this evening!
Samsung being eaten from the bottom up by yet another, even cheaper Apple copier, Xiaomi, is rather amusing.
When Apple finally extracts their collective head from their collective ass and ships iPhone models with larger screens, they’ll do more damage to slavish copier Samsung than all of their endless, plodding patent infringement cases combined. – MacDailyNews Take, January 23, 2014
May the pain coming to Samsung pack thermonuclear intensity.