One Thing Samsung Does Not Want to Copy: Apple’s Downward Spiral
Overly optimistic analysts are now realistically revising their sales forecast of Samsung’s flagship Galaxy S4 smartphone, sending the company’s stock into a downward spiral. Once the beloved rival to Apple, the dominant smartphone-maker in the world could see its luster wane as industry analysts are now saying that the Galaxy S4 are beginning to slow in regions like Europe and Asia.
Samsung‘s closest rival in the mobility space, Apple, was once the tech darling showing no signs of any slow downs. However, in recent months, Apple had seen its market cap slashed as investors became concerned that the company may not have an answer to the quickly saturated smartphone market, and it seems that Samsung is being faced with a similar situation.
With fears that Samsung’s sales are slowing in the mobile space, investors are slashing estimates of Galaxy S4 sales by as much as 30 percent. Initially, Samsung was forecasted to move around 70 million Galaxy S4 units this year. The company sold 10 million units in the first month of the phone’s introduction. However, analysts are predicting that Samsung could move 65 million units according to Reuters. While an impressive number none the less, the reduction could erase $1 billion in profits for Samsung’s mobile division.
If Samsung doesn’t act fast, investor concerns about a saturated smartphone market with increasing competition from low-cost rivals in China could see Samsung facing similar market declines as Apple.
Samsung head JK Shin refuted claims that the Galaxy S4 isn’t doing well. In a statement to investors, Shin says, ”S4 sales are solid. It’s just that some analysts had higher expectations and then they lowered them.”
For Samsung, which has largely commanded the high-end smartphone space, investors are concerned that the company may not have an answer for the low-end and mid-tier segments. The company had recently announced a Galaxy S4 Mini smartphone which carries its flagship’s namesake but with more modest specs for a more affordable price tag. Samsung had also announced a Galaxy S4 Active and the Galaxy S4 Zoom, and the company is hosting an event this week in London to showcase new Android and Windows products.
The company is also expected to expand its mobile offerings to the camera space with a rumored Galaxy Camera 2 model that will be based on the NX series lens system and will come with innovations that were introduced with the Galaxy Camera. Also, Samsung is rumored to be introducing a new Galaxy Note 3 phablet this year, a form factor that has proven to be wildly successful with consumers who want a larger device, but also one that’s still mobile and portable.