Samsung's stock price dropped 6% on Friday, erasing $12 billion in marketing value as investors fretted about the company's smartphone strategy.
In particular, Samsung's decision to offer stripped-down versions of its Galaxy S4 worried analysts and investors who think the move may eviscerate profit margins. Sales of the S4, initially Samsung's fastest-selling smartphone, have also fallen off since the device's introduction in April.
Another analyst, Kim Hyun-yong, at E*trade Securities, told the Journal that since Apple is expected to announce a trade-in program for older phones and a new cheaper iPhone, "overall growth prospects for (Samsung's) smartphone business have dimmed."
Samsung's stock price finished trading on Friday in Seoul at its lowest level in four months.
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