2023 Author: Gordon Kinson | [email protected]. Last modified: 2023-05-24 11:09
Samsung's financials went down a sloping curve as sales of the flagship Galaxy S4 did not match projections. Let's try to find out if one of the best modern gadgets in its price range is really to blame for the problems of the South Korean company.
To begin with, a few numbers - the next trading session on the Korean Exchange ended with a 3.4% drop in the shares of the South Korean giant, while the company lost more than $ 6 billion in market capitalization, which amounted to $ 32.7 billion. At the same time, the growth rate of operating profit in the II quarter of 2013 increased significantly compared to the same period last year, however, decreased relative to the first quarter of the current and amounted to 50%. Moreover, the drop in shares is due to the fact that Samsung sold 74 million devices in the second quarter, while the previously announced 76 million.
Translating from the language of dry financial numbers to the public, we get the following picture - investors have lowered the quotations of the South Korean manufacturer for an allegedly unexpected drop in sales growth rates by less than 3%. And this despite the fact that it was known about production cuts for the South Korean flagship back in June. It was then, in June, that experts and analysts first started talking about the impending collapse in the smartphone market, or rather, in the high price range, and it was then that Samsung quotes had already fallen by 13%.
The situation with sales of Galaxy S4 in the Russian market does not add to the situation of transparency - retail partners of Samsungunanimously say that smartphone sales are predictably high. It is estimated that about 150,000 devices were purchased in Russia - a result that surpasses similar indicators of the Galaxy S III, which gained momentum only after the introduction of a 20% discount. Analysts on the Russian market also note that sales of the iPhone 5 started faster, mainly due to the successful start of sales - before the New Year.
- Samsung stock plummeted on falling demand for the Galaxy S4.
- The Galaxy S4 helped Samsung overtake Apple in the US market.
- The oversaturation of the smartphone market will negatively affect Apple and Samsung.
- Apple will cut production of iPhone 5