Samsung Shares Tumble $12 Billion in Valuation on Galaxy S4 Sales Concerns
According to Bloomberg. JPMorgan cut its share price estimate for Samsung by 9.5 percent and also reduced its 2013 earnings estimate by 9 percent. The investment company noted that the Galaxy S4 "had stronger momentum in the first quarter of launch," but is nevertheless expecting next quarter's shipments to be "disappointing" after conducting a round of supply chain checks.
Specifically, JPMorgan expects S4 shipments to total 60 million this year, down 20 million from its previous estimate. Why the drop? It could be that smartphone users are still content with the S3. The S4 brings some nice upgrades and compelling feature upgrades to the table, but nothing that really blows the S3 out of the water.
The Galaxy S4 got off to a fast start when it debuted at the end of April and notched 10 million sales in less than a month.territories via 327 partners.