Samsung Electronics loses $12 billion market value on smartphone worries

Discussion in 'Apple, Industry and Internet Discussion' started by Rogifan, Jun 7, 2013.

  1. macrumors G5

    Rogifan

    Joined:
    Nov 14, 2011
    #1
    Samsung Electronics loses $12 billion market value on smartphone worries

    SEOUL (Reuters) - Samsung Electronics Co lost $12 billion in market value on Friday, hit by brokerage downgrades that have underscored concerns about slowing sales of its flagship Galaxy S4 smartphone. <snip>

    If this is a genuine slowdown in high end smartphone sales it will be interesting to see how this affects Apple when they release the next iPhone.
     
  2. macrumors 603

    jrswizzle

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    #2
    Samsung doomed?

    http://www.zdnet.com/samsung-shares-plummet-over-galaxy-s4-profit-fears-7000016526/

    http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-247837/

    http://www.theinquirer.net/inquirer/news/2273464/samsung-shares-dive-over-slowing-galaxy-s4-sales

    I'd love to see what some of you come up with for these articles....

    Perhaps Samsung isn't as invincible as people think? Perhaps the HTC One is actually doing rather well? Perhaps there is excitement for what Apple will be unveiling?

    All interesting topics of discussion.
     
  3. Moderator

    maflynn

    Staff Member

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    #3
    Doomed really, that seems a bit over the top. Sure the S4 isn't much different then the S3, and the HTC One seems sexier so its conceivable its not selling as well, but saying doomed :rolleyes:
     
  4. macrumors 603

    jrswizzle

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    #4
    Completely agree......much like I think Apple isn't doomed.

    Really my posting of this was to see if we would get some similar defenses from the Samsung crowd that they mock coming from the Apple crowd.

    Of course Samsung isn't doomed.....but people have been crying that Apple's doomed for years....sometimes being faced with your own ignorance can wake you up.

    I really think the One has taken it to the GS4.....surprising? Perhaps.....the One is an excellent device but given the way Samsung is talked about, you'd think they were some unstoppable force that's ready to wipe out all competitors.

    Here we see, that's not the case. And for all its trying, Samsung isn't Apple yet....
     
  5. macrumors 604

    Digital Skunk

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    #5
    I agree. Competition doing well and a 'tock' update to your premier handset don't spell disaster.

    I am eager to see what Apple does with the iPhone 6 (since the 5s will be an update, a tock very similar to what Sammy did with the S4), may even consider it if it has the features I need in a 'with me all of the time' handset.

    But I know that there will be tough comp for it and the any other worthy handset. From what I can tell, even the Note III will be an incremental update. Bigger screen, and a bunch of features/improvements from the Note 8 and the S4.

    Not surprising at all actually, leap-frogging is what the tech industry does. It's been doing it for decades. At one point HTC phones were top notch and going head to head with Nokia. Now, Nokia is what . . . . fifth in line?

    I am sure the landscape will change with more substantial updates to handsets.

    Anyone saying any company is "doomed" because of a new product has lost their mind. Even Nokia and Blackberry are still in the game and they fell FAAAAARRRRRR from the top.
     
  6. macrumors 6502a

    Assault

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    #6
    S4 is the #1 selling phone in the US. And has sold more than 10million in a month. Yep, for sure they are doomed. :rolleyes:
     
  7. macrumors G3

    roadbloc

    Joined:
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    UK
    #7
    I don't think anybody is doomed. As with everything, markets fall and rise; public opinions change and newer fresher products can made differences. This just could be simply a case that the majority of people who have a smartphones still have contracts to ride out before they can get a new one.
     
  8. macrumors 603

    jrswizzle

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    #8
    HA....

    Haven't heard that before.....oh wait, that's what we all say every time someone cries "Apple is doomed" and they go on to release the most popular smartphone each year.....

    Exactly the type of response I expected.
     
  9. macrumors 68040

    MonkeySee....

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    #9
    Samsung don't release sales figures so where did you get this info from?
     
  10. macrumors 603

    jrswizzle

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    #10
    Brilliance. Exactly my point - goes for Apple and Samsung and ANY of these companies.

    Heck look at HTC.....they're making a comeback even with all the internal turmoil.
     
  11. macrumors 604

    Digital Skunk

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    #11
    Much better introduction to the thread, and one that asks a better question.

    I don't think it's a slowdown at all. I think the market needs to remember that users can't keep updating smartphones as quickly as iPods and tablets. The two year agreement we in the states have to sign pretty much seals us into having the phone for two years before we go looking for a replacement.

    My wife and I bought our Sammy's in December and January. So, in January of 2014, our first year will be up.

    Besides, it's an old article but one that's still relevant if you ask me, most don't upgrade with every iteration.
     
  12. macrumors demi-god

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    #12
    In the article, if you replace Samsung with Apple, and Galaxy with iPhone, the majority of it sounds like the typical Apple news article. :cool:
     
  13. macrumors 603

    jamezr

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    US
    #13
    Was just about to write that exactly same thing.....
    But then haters will hate.....usually people with agendas post all the doom stuff....
     
  14. macrumors 6502a

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    Montreal, Canada
    #14
    That is absurd (saying it is doomed) but I am starting to think that the sheen of high-end phones is wearing off (not with techies but the general public). Clearly not commoditization, but something else.

    There is a general malaise creeping in at the high-end market. HTC One? I have one and really like it. That said, HTC's stock price started Monday off with a bang, going up some 4% but since then it has had a drip-drip erosion, with articles like this not helping it:

    http://focustaiwan.tw/search/201306060008.aspx?q=htc

    That said, I find this extract a bit ridiculous (not the whole article):

    "In a separate report, U.S. bank Citigroup Inc. said that the new HTC One is "not enough for a turnaround" for HTC. The bank kept a "sell" rating on HTC shares and a NT$205 target price.

    Kevin Chang, a Taipei-based analyst at Citigroup, estimated the new HTC One shipments at 3 million units in the second quarter and at only 2.5 million to 2.8 million units in the third quarter."


    HTC in May had supposedly 5 million unit sales of the One in just over a month and the unaudited May results seemingly reflect this (almost $1 billion in sales). To believe that only 3 million units will be sold between April and June does not add up. And before anybody starts comparing calendar quarters and fiscal quarters, HTC's Q2 fiscal quarter is indeed April to June.
     
  15. Peterg2, Jun 7, 2013
    Last edited: Jun 7, 2013

    macrumors 6502a

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    #15
    You are both correct :)

    Samsung stopped releasing *unit* sales figures in 2011 in terms of their quarterly and annual audited results. You simply get total sales in Korean Won.

    However, in conference calls, etc they often do specify, in broad terms, unit sales.
     
  16. macrumors 6502a

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    #16
  17. aristobrat, Jun 7, 2013
    Last edited by a moderator: Jun 7, 2013

    macrumors demi-god

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    #17
    It's bad when the New York Times (the publication that seems like it will rip Apple anytime it can lately) calls out the analyst comments in the "Samsung is the #1 selling phone in the US" piece that you're talking about.

    http://bits.blogs.nytimes.com/2013/06/05/samsung-may-have-surpassed-apple-in-the-u-s-for-now/

    Personally, I agree with you. Samsung is far from doomed. I just don't think that analyst report you're talking about is a strong case to cite.
     
  18. macrumors 6502a

    Assault

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    #18
    Well, I'm glad the gloom and doom article came out. Samsung is up nearly $10 a share. :D
     
  19. macrumors demi-god

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    #19
    Just points out how idiotic most of these gloom and doom articles are!
     
  20. Peterg2, Jun 7, 2013
    Last edited: Jun 7, 2013

    macrumors 6502a

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    Montreal, Canada
    #20
    Actually the market is closed in Seoul (it closes at 2:15 am EST Mon-Friday for those in NA) and I don't know where you are getting this figure from. Here is the closing for Friday on the KSE:

    http://www.reuters.com/finance/stocks/overview?symbol=005930.KS

    The stock is down just over 6%.
     
  21. thread starter macrumors G5

    Rogifan

    Joined:
    Nov 14, 2011
    #21
    I would argue the hardware is good enough people don't need to upgrade as frequently. Probably why Samsung threw the kitchen sink in in terms of software features/gimmicks. But honestly was there some killer feature in the S4 that would make it a must upgrade over the S3?
     
  22. macrumors G5

    yg17

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    Location:
    St. Louis, MO
    #22
    First of all, a stripped down S4 =/= trade in program. I don't know how you can even insinuate that the two are equal and Samsung is copying off Apple. Second of all, Apple's stripped down iPhone and trade in programs are rumors at this point so you're accusing Samsung of copying a non-existent product.
     
  23. macrumors regular

    bag of kittens

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    #23
    He made it up. Just like he made up the part about Samsung shares being up. The shares were down 6.18% friday.

    ----------

    Judging by the influx of MacRumor shills (all with join dates of 2013), I assume the budget is WAY bigger than that.

    Are you reading this, you guys? We KNOW you are paid shills.
     
  24. macrumors 65816

    Risco

    Joined:
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    Location:
    United Kingdom
    #24
    Samsungs bubble bursts, Galaxy S4 well below targets - $7.7 billion wiped from value

    Not looking good, whichever way you look at it! HTC and Sony now have true competitors, the iPhone always sells well year on year and Blackberry and Nokia / Microsoft are making inroads.

    I think this is where Apples strength in depth, and their rock solid ecosystem will come shining through. Now if Apple decides to drop them as a supplier things could start to get even worse.

    http://www.telegraph.co.uk/technology/samsung/10105633/Samsung-Galaxy-S4-sales-to-disappoint.html
     
  25. macrumors regular

    Joined:
    Apr 18, 2013
    #25
    Already discussed, and really nothing out of the ordinary. If anything HTC, Sony and LG are the ones that have everything to prove. Let's wait till end of year numbers to get the real facts though. At that point we'll have a better idea which way the wind is blowing. Although I'll go out on a limb and say it'll still be all about Apple and Samsung. Just a wild guess.
     

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