Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

More Signs That Samsung Electronics Co., Ltd.'s Galaxy S4 Sales Are Declining

By

Now that Samsung has experienced a couple years of growth, it seems that analysts are ready to give it the Apple treatment.

PrintPRINT
Editor's Note: This content was originally published on Benzinga.com by Louis Bedigian, Benzinga Staff Writer.

Samsung Electronics Co., Ltd.'s (OTCMKTS:SSNLF) beloved iPhone competitor might not be the smash hit that the company anticipated.

The South Korean tech giant took a beating last week after an analyst claimed that Galaxy S4 shipments would decline in July.

While that assessment was not as grim as it sounded (Samsung could still match or beat the sales of the Galaxy S III even if the shipments are reduced), it is a very familiar tale for the industry.

Apple Inc. (NASDAQ:AAPL), Samsung's chief competitor, is no stranger to negative reports that have hindered the stock and diminished the company's value. After several years of successful growth, analysts have gotten to the point where it is all but impossible for Apple to meet their expectations. Thus, Apple shares have continued to plummet, falling more than 21% year-to-date.

Now that Samsung has experienced a couple years of growth, it seems that analysts are ready to give it the Apple treatment.

Unfortunately, the rumor mill is ready to do the same.

According to DigiTimes, Samsung may be planning to reduce the parts and components orders for the firm's flagship phone, the Galaxy S4, during the third quarter.

The reduction may have already begun, however, as DigiTimes' sources believe that Samsung reduced its supply orders during the second quarter (which ends this month) as well.

This does not guarantee that Galaxy S4 sales will decline, but it is an indicator that consumer demand may be waning.

Samsung could pick up the slack, however, by releasing several versions of the Galaxy S4. The company is reportedly planning to unveil the so-called Galaxy S4 Mini during its highly anticipated summer event on June 20.

That's not the only Galaxy S4 variation, however. Samsung also unveiled the Galaxy S4 Zoom this week, marking the first time that the company has applied a digital camera-style zoom lens to a smartphone. The device is smaller and weaker than the true Galaxy S4, but the camera could be a compelling reason for consumers to choose it over other smartphones in its class.

In April, Samsung unveiled the Galaxy Mega, a new line of Galaxy smartphones that reach a maximum size of 6.3 inches. This makes it one of the largest smartphones in the world. It dwarfs the Galaxy Note II and LG Optimus G Pro, which seem small in comparison, and is a tad bigger than Huawei's 6.1-inch Ascend Mate.

With these and other smartphone models, Samsung may not suffer a financial loss. The actual Galaxy S4, however, may look less impressive as sales are spread across the entire Galaxy line.

Below, find some more great ETF and market content from Benzinga:

Google to Raise Nexus 7 Price to Help it Stand Out

Toyota Shifts Efforts From Expansion to Quality Control Amidst Recall

Small Cap Analysis: Canadian Solar

Twitter: @Benzinga


Benzinga Pro covers this and all market news in real time. Get your free trial here.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE