Samsung’s CEO denies that the Galaxy S4 isn’t selling well
The other day we heard that Samsung’s Galaxy S4 sales figures were disappointing some investors, leading to a big stock sell-off which wiped around $12 billion off the value of the technology giant in a single day.
A report by J.P. Morgan led the charge, suggesting that sales of high-end smartphones were lagging behind expectations across the board, and that monthly orders for the Galaxy S4 are due to be cut by somewhere between 20 and 30% by July. With so much hype surrounding the launch of the Galaxy S4 it was always a real possibility that third parties would overestimate the company’s ability to shift record numbers of handsets, which I suspect is exactly what has happened.
In a rebuttal to J.P. Morgan’s claim that the Galaxy S4 is underperforming, CEO of Samsung Electronics, Kim Yoo-chul, has stated that the Galaxy S4 is selling just fine by their own standards. Speaking at a meeting with presidents of Samsung affiliates the other day, Kim Yoo-chul stated:
[quote qtext=”I can say sales of the Galaxy S4 smartphone are fine. It’s been selling well,” qperson=”” qsource=”” qposition=”center”]
He also reiterated what I’d already expected, that J.P. Morgan’s own analysis was simply overzealous to begin with.
[quote qtext=”The report (by JPMorgan) was based on its own analysis. Probably, the bank may have corrected its previous bullish estimate about the S4 sales,” qperson=”” qsource=”” qposition=”center”]
It’s pretty unusual for a company to comment directly on a third party’s sales forecast, but considering the damage to Samsung’s stock price, which was likely caused by the pessimism in the Galaxy S4’s performance, the statement was no-doubt an attempt at damage control. So far the stock has lost 7.44% of its value since the sell-off began on June 7th, the single biggest weekly decline in Samsung’s share price for more than a year.
Looking at the actual figures though, there’s little doubt that the Galaxy S4 is selling just fine. It’s already surpassed the previous record set by the Galaxy S3 and over 10 million units have already been sold, which trumps the sales figures of the rival HTC One by quite a margin.
The stock sell-off which started at the end of last week is most likely a realignment of bloated expectations, a simple correction if you will, not to mention that the stock was already trading close to its all time high. Samsung also has a strong line-up of products set for release in the not too distant future, so, despite the pessimistic reports, I wouldn’t start worrying about Samsung anytime soon.