Samsung has its Apple moment – in a bad way

Samsung Share Price Crash

Samsung is quickly learning what Apple learned last fall: When expectations are sky-high, it doesn’t take much to send them crashing back down to earth. Reuters reports that Samsung “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.” The reason for the rapid crash in Samsung’s stock price is reports that sales of its high-end Galaxy S4 are expected to come in below earlier estimates even as sales of its lower-end devices continue to be brisk. Take those two factors together and you’ve got some real worries about whether Samsung’s upcoming profits will live up to expectations — or as Kim Young-chan, an analyst at Shinhan Investment Corp, tells Reuters, “This has also sparked concerns about thinning margins and lower growth.”

Source:
Reuters
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