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Samsung Faces $12 Billion Loss in Smartphone Market Value

Jun 7 2013, 8:42am CDT | by , in News | Technology News

Samsung Faces $12 Billion Loss in Smartphone Market Value

Samsung stands to lose a lot of money over market speculation worries regarding its Galaxy S4 smart phone. The electronics giant faces a loss of $12 billion in the market value of its smart phone which could prove to be a dent that hurts it immensely.

The slowdown of sales figures has definitely damaged Samsung’s reputation. The South Korean behemoth faces a downward trend in shares that amounts to 6% thereby setting off alarm bells regarding its viability as a global leader. It has issues with its main competitor, Apple Incorporated and some Chinese rivals too, but this is a personal flaw that has just been highlighted. According to Reuters, its latest minimalist design S4 models had the profits rolling in but this recent trend has been somewhat of a shock. The sales pitch has trickled to a halt. The desires and expectations are not being met as a general lagging behind of public demand has occurred.

We are talking about the luxury models and not the budget editions. The latter are selling at a fast pace while sales for the former have started to plummet. Even mid-range hand sets are selling at a feverish pitch. It is the high end stuff that is showing a lack of response from the target audience. The growth of the really hot market for Galaxy S4 models has therefore shown evidence of a winter season. It was basically the introduction of two new versions of the S4 that have set Samsung on this new downward spiral.

Not only in Europe but in its own homeland (South Korea) too, Samsung is losing ground. J.P. Morgan calculated the losses for Samsung to be 20% to 30% in both regions. This is sad news indeed for the executives at the Samsung headquarters. They will have to primp up their image to suit the times. While Samsung has just recently won a patent trial with Apple, which boosted its happiness quotient, it now faces its own demons which will have to be exorcized for better or worse.

Samsung is also observing Apple’s recent in-store trade-ins of its iPhone with keen interest. Maybe it can learn a thing or two from its arch-enemy and main competitor on the global scene. It is common knowledge that an intelligent enemy is better than a stupid friend, for you may gain in wisdom from engaging in battle with that rival. The greatest organizations always pick up important tips unconsciously from each other even if they compete ferociously on a conscious level. Samsung too could benefit from a little unsolicited advice provided it is willing to take it constructively.

Image Credit: Getty Images

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