Samsung’s CEO denies that the Galaxy S4 isn’t selling well

by: Robert TriggsJune 13, 2013

Samsung Logo

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.

Samsung long term stock performance

Although the short-term outlook may be negative, Samsung is still performing very strongly. Source: Google Finance

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.

  • DrCarpy

    It’s funny. They (Samsung) had no problem saying HTC missed expectations and laughing. Where I come from they say when you dig a hole for someone else you should dig two…

  • Anonymoose

    It seems more than a little likely that someone at JP Morgan wanted to buy up some discounted stock, so this hitpiece came out.. I hope the SEC takes a look at who was buying up the selloff. Because $12 BILLION is a lot of easy cheddar when the stocks go back up in a week or two.

  • simpleas

    Samsung is doing fine lol

  • hey

    think samsung is not selling well because it is bad phone but because the samsung users have the s3 or note 2 and see no point of upgrading…which is why i think the s5 and the noe 3/4 will probably sell better than the s4

  • Cycad007

    S4 is a great phone. But I’m glad other OEMs have stepped up to take some of Samsung thunder. I’ll save my money for a Motorola, Asus, HTC, or Sony phone.

  • RaptorOO7

    Personally I had the S3 and was glad to sell it and get the S4. Much nicer phone and I got rid of Verizon to boot.

  • Cao Meo

    The rushed release of GS4 Active says it loud and clear:

    “GS4 is not doing well”

  • Anirudh

    Don’t trust these wall street guys.

  • kascollet

    Why don’t they just communicate actual numbers ?
    “Fine” is absolutely not precise enough…

  • Mike Bastable

    the S4 suffers from the iphone syndroom, seems too much like the older model to generate massive interest. However it is a good phone and will be most peoples choice as they renew contracts and choose new models, it just is not going to become a huge “must have” item. The HTC however does have the desirability halo effect…its sales will continue to be strong probably.
    Samsung, as it grows will become the target of more and more silly JP Morgan like reports in future (as Apple has learnt) they build you up, to push you down, mainly so that they can continue to profit.
    ALL OF THESE BANKS ARE SCUM, they almost destroyed our economy and have carte blanche to continue to do so with speculative reports and
    poorly formulated opinions.
    Samsung is fine, the S4 is great…the CEO of Samsung merely indicated that JP was too bullish initially (to push share up) and now wishes to be less bullish (to push shares down).