A slowdown in the sales of the Samsung Galaxy S4 has brought down the shares of the company as well. The share price of the company was hit by as much as $12 billion today – Friday, June 7. The sales of the Samsung Galaxy S4 have slowed down a bit, which is quite understandable, after its great showing.
The Samsung Galaxy S4 became the fastest-selling Android Smartphone reaching the 10-million units in a matter of a few weeks. It didn’t take even one full month of the Samsung gadget to reach that mark. As it reached its peak, the sales had only one direction to go – downwards.
The company’s shares came down by more than 6% on Friday. There is a fear that the interest in the Galaxy S4 is dwindling and hence the fall in shares. Experts in the field had predicted that there will be about 20% to 30% less than what was earlier being expected.
There is another reason for worry, especially for the investors, which are the margins in the profits. There are more reasonably priced models in the Galaxy S4 range like the Galaxy S4 Mini and the Galaxy S4 Active. This is the highest drop in the share price for Samsung for almost nine months.
This drop in the shares has brought down the capitalization in the market by around $12billion. That is equivalent to £7.2billion.
There is one thing that needs to be mentioned about this fall in Samsung shares and the ‘credit’ goes to Apple. There are rumors that Apple might initiate a trade-in for the iPhones probably in this month itself. According to this programme, users with older versions of the iPhone can get newer iPhone models.
It is being feared that the current iPhone users might turn an eye on the Samsung devices and will instead go for Apple gadgets.