If you thought Wall Street negativity was exclusively reserved for Apple, with the Californians being put firmly in their place following a record high last September, think again.
There’s a fresh serving of stock-based doom and gloom for the undisputed darlings of the smartphone world, South Korea’s Samsung.
Reuters relays word of what it describes as a “massive wave of downgrades”, with Samsung resultantly losing nearly $20 billion in market value in a week. Oh dear.
Despite screaming out of the gate and quickly recording 10 million Samsung Galaxy S4 “sales” (channel sales, that is), analysts reckon their initial estimates for the year were too high.
The analysts point to a slowing high-end smartphone segment, the absence of any real “wow factor” on the Samsung Galaxy S4, a general lack of innovation in the industry, and the rise of Chinese mobile manufacturers.
However, we’re talking about estimates being lowered from, say, 70 million to 65 million (in the case of Merrill Lynch), which is still a heck of a lot of Samsung Galaxy S4s.
As JK Shin says: "S4 sales are solid. It's just that some analysts had higher expectations and then they lowered them.” I love how he sums up this entire story in one sentence.