As we've seen time and again, investors are a fickle bunch, and skittish too
. Lest we need reminding of that, it's being reported that shares of Samsung
in Seoul have fallen more than they have in the past nine months, and it's all because JPMorgan Chase & Co. noticed a slowdown in Galaxy S4
sales. So began the domino effect, which led to JPMorgan cutting profit estimates for Samsung, and that in turn resulted in Samsung's share price dropping 6.2 percent, the steepest decline since August 27, 2012. That might not sound like much, but it was enough to drop Samsung's market capitalization by $12 billion - ouch!
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.