Samsung’s share price falls to a nine month low

by: Robert TriggsJune 26, 2013

Samsung Logo

Samsung stock holders have been having a hard time lately. Earlier in the month, the company lost over $12 billion off its market valuation after investors downgraded the company’s sales prospects for the new Galaxy S4 once it was discovered that Samsung had reduced its part orders for the flagship handset.

Unfortunately for anyone still holding the stock, Samsung’s share price fell more than 3 percent during trading on the Korean stock exchange earlier in the day, before rebounding slightly resulting in a 2.8% decline come the close of the trading session.

Samsung stock price June 26

A view of the continuous decline in Samsung’s share price this month, beginning June 7th. Source: Google Finance

This marks a new nine month low for the company’s stock, amid rumors that Samsung will be reporting lower than expected earnings between April and June. Today’s close also brings the total decline to a rather worrying 17% since the initial market gap down on June 7th, which is the biggest week on week sell-off in Samsung’s stock in more than a year.

Perhaps even more worryingly for Samsung, announcements of new handsets have done little to alleviate the troubled stock. New versions of the Galaxy S4, like the Active and the Mini variations, do not appear to have boosted investor confidence in Samsung’s future sales, and more innovative products like the ATIV Q convertible tablet/laptop don’t seem to have made an impact either.

It seems like a lot of the bearish sentiment on Samsung’s stock is being led by concerns about Samsung’s up coming sales figures, which many are expecting to fall below their estimates. If the company can surprise investors, or the results turn out not to be as bad as many have now anticipated, then there’s a chance that the stock could rebound. But if not then it will be interesting to see what happens to the value of Samsung’s stock, as we know from past experience that big tech companies are particularly vulnerable to prolonged stock sell-offs.

  • David

    glad 2 hear it.

    • gary

      why exactly?

      • Luka Mlinar

        Because they keep making phones that all look the same.

        • Jaun Lombard

          shit argument! Should every phone in their lineup look different? Well then HTC, LG, Apple, Sony should do the same!

          • xtriker360

            Have you look at the s2, s3, and s4? Design wise, hardly any different

          • YoungHermit

            The S2 does not look like the S3/S4…

          • Rayan

            HTC One is a clear example for that !

          • Benjamin Pavel

            HTC and Sony made different design phones last year so YOUR argument is invalid just look at these phones and you will see how many similiar in design Samsung phones are since S3 :
            Galaxy S3, Galaxy S4, Galaxy S3/S4 mini, Galaxy Core, Galaxy Mega, Galaxy Trend 2, Galaxy Win, Galaxy Fame, Galaxy Express, Galaxy Grand, Galaxy Pop, Galaxy Premier, Galaxy Music, Galaxy S Duos etc.

          • Benjamin Pavel

            HTC and Sony made different design phones last year so YOUR argument is invalid just look at these phones and you will see how many similiar in design Samsung phones are since S3 :
            Galaxy S3, Galaxy S4, Galaxy S3/S4 mini, Galaxy Core, Galaxy Mega, Galaxy Trend 2, Galaxy Win, Galaxy Fame, Galaxy Express, Galaxy Grand, Galaxy Pop, Galaxy Premier, Galaxy Music, Galaxy S Duos etc.

          • Jaun Lombard

            You call that a design language! car manufactures use it as well! Yes HTC, Sony made different phone last year, but this year they are following Samsung’s trend! LG is even copying the design from the S2 and Note 1! (a Samsung phone you can spot a mile away, HTC, Apple and Z10 looks very similar although good) Samsung can mass produce more phone than any other maker, so don’t diss them for that, PLUS all those phone are not available in every country! It is market specific. List only the phones that you get in your country, then the number will shrink.

            I still agree they should have changed the look, but I don’t think it is ugly phones…the S4, S4 mini, S4 active and Galaxy Ace 3 are good looking phones…only the cheaper models look dull!

          • Luka Mlinar

            HTC, LG and Sony phones don’t look alike. Apple only makes one model.

          • Jaun Lombard

            Yes LG phones looks like the Galaxy S2 and yes HTC One…HTC One mini…HTC Butterfly or what ever! Nokia Lumia 920, 900, 925, 620,720,710! Sony xperia Z, xperia Z Ultra, Xperia Tab, xperia S…all of the xperias looks the same! Apple iPhone 3, 4, 4s, 5, futer 5s looks the same, so does the iPod and iPad!

            Yes I agree that they should have never gone with the same design for another year, but they did! I just think

          • Luka Mlinar

            Let’s brake it down. Microsoft has Nokia by the balls so they are deciding basically everything there. It’s meant to look the same from the start to reflect the Microsoft experience. That decision is running the company into the ground. Sony has a new design model this year verses last years design. Sure there are a few phones that look alike but for every 2 that look alike there are 5 that don’t. Any Z(sufix) phone is a sister phone. Yet the ZL doesn’t look the same. Xperia S looks nothing like the Z. Again Apple only makes one model and they are gonna lose just the same if they keep it up. By now the rules are so simple a child knows them yet we have Apple who stick to their old plan thinking it will work forever. Stupid Samsung copying that plan. MS/Nokia thinking the market will shift. And RIM who at this point even Apple knows their prehistoric model will crash and burn within 2-3 years. Samsung messed up with the S4. HTC put to much into one phone. It’s Sony’s time to shine.

          • Jaun Lombard

            True to that! Can’t wait for the Note 3 and Sony xperia Z Ultra comparison! I know the Note 3 will look like the S4, but I want to see how they upgraded the stylus function!

  • xtriker360

    The problem with Samsung is the same problem that Apple is having; people get tired of the same things, galaxy s2, s3, s4, are pretty much the same phone with just some internals upgrades. Time to make something new samy.

    • Jaun Lombard

      I agree…the note was a good start, but the thing in the tech space is that competitor do catch up and software wont help Samsung! But what can they do differently…we have smartphones, Note-phones, Tablets, Smartwatch, Glasses, Notebooks, laptops, PC’s, SmartTVs, Hybrids! What else? I cant think of a thing…Samsung can put a flexible display in the S5, but people will say it is still a phone with a screen…thus an upgrade over the S4! I think the Note range is Samsung’s best innovation to the mass market, but it wont last..aka Sony xperia z Ultra!

      • Rayan

        maybe Note 3 can change that !

    • nishantsirohi123

      Samsung reminds me somewhat of Toyota , with safe and inoffensive designs that look boring
      and well the new lexus and new corrolla looks sexy so hopefully Samsung’s recent deal with a carbon fiber company and the leaks of note 3 are indicating something different

      S4 was a big disappointment in terms of looks
      sure it was the same size as S3 but samsung got hit by their own joke they made on apple in their S2 ad….”If it looks the some, how will people know i upgraded”

      Come on samsung, you need not play so safe in terms of design,
      Samsung has the most diverse device range in the android devices.

      perhaps a low end device with ginormous battery to be used as an ipod replacement.
      do some experiments because unlike HTC mobile phones alone aren’t the only source of income for you.

      Loving my Titanium Grey note2

  • hoho

    It was inevitable.
    You can’t count on upgrades all the time in this innovation driven industry.iPhone was a legendary product when it was launched,since then Apple has lost It’s innovation edge.Samsung cashed in and is rejoicing the huge success with its galaxy lineup.But it’s on the same path as Apple.That may not be a bad idea but for the long run it might just not, Samsung can do better than this

    • xtriker360

      Totally agree with you, after the s2 and s3 the s4 should have been different. That’s why haven’t get an s4, i have the s3 and I see no reason to to the s4.

  • Ivan Budiutama

    It is either people don’t actually change phone every year or their competitors are getting better or both.
    First, if I got S3 last year, the most possible thing for me is to get the next phone maybe next year, or a year after next year. Well, I can count some people I know with all flagships and always update them every time the new ones come, from all brand starting with HTC One, Samsung GS4, Lumia 928, Blackberry Z10 and Sony Xperia Z. But they are more rare, though.
    Second, the competitors are getting better, from the newly emerging brand like Oppo and Lenovo (quite popular here in Indonesia) and the old players that obviously getting better, HTC One seems like a big success despite people’s skeptical respond on the “Ultrapixel” thingy, not to mention the Sense 5 seems like offer a lot better performance, cleaner and light-weighted. Also the Blinkfeed despite another skeptical preview, seems to be popular. Sony, well, how do I start, the Z received positive respond, the first time I see since they emerge from Sony Ericsson to Sony rebranding, The first smartwatch is also a big success and well received here, not to mention that their official updates are getting a LOT better with most phones getting the JB updates officially, not only their flagships (or ex-flagships) but also their mid-range phones. I personally is waiting for the Lenovo K900 with Intel processor, looks like a great deal, with nice balance between performance vs battery life, something that more important to me than “breaking” the Antutu number.

  • Cosinav

    I changed from the note 2 to the s4. Honestly, it’s much like a smaller version of the note 2. It’s not revolutionary and it seems Samsung is running out of ideas. Sony and HTC has made excellent progress with the one and the z. Samsung and Apple needs to make some bold moves alike to keep ahead of the group. I still believe that Apple will have the edge overall because of their strong eco system and developer base. There can only so many design ideas, new materials etc but I see the smartphone war eventually ending up with it coming down to not only having the best software but also a strong eco system to support it. Apple is ahead in this arena, Samsung is trying but they have a long way to go.

  • 윌 스튜어트

    Does this have anything to do with the prediction that Apple are about to win a lawsuit against Samsung in Germanyk

    • kascollet

      No. This is just a drop in an ocean.
      It has to do with innovation, real new products.
      Someone in 2013 is going to invent something new. It seems that wont be Samsung or Apple. Who then ?

  • Wavefunction Collapse

    Samsung make things other than phones. Keep that in mind before going all flame-war down here.

  • Rooney-

    Is this the begining of end for samsung?

    • Jaun Lombard

      No Samsung is not like Apple and HTC that depends on electronics for their future and survival…Samsung is a colossal company and electronics is a small part which they can close any time because they export more parts out for other manufactures than to them selfs! Their biggest busuness is engineering, building ships and IT ect. Plus the market annalists are saying Samsung’s shares are falling, but they also say Samsung was over valuated, so it is natural to return to normal value!

  • Billy Joseph

    Samsung stole a page from apple’s playbook. The difference between the s3 and the s4 is like the iPhone 4 and 4s. IPhone users flock to the stores for the next version, like sheep. Android users are not as “brainwashed” for lack of a better term. S3 owners bought the s3 because it’s a great phone not because it’s an s3. IPhone users buy it because it’s an iPhone not because it’s a great phone. See the nuance. Samsung won a battle and got complacent. Apple is still winning the war. We didn’t need the s4 at least not yet and certainly not so similar to the s3. Get your head in the game sammy, you’re slipping.

  • Edson

    Personally, when Samsung introduced variants of the S4, I felt really bad. I had to decide what to buy: 3g or 4g? I went for a 4G since I was interested with the fastest speed. However, I have never felt like this when I had my S2, Note and Note 2.
    Nokia, during its glorious days, did the same thing – introduce new models and taking off some features. All became simply Nokia (now S4) with so many variants.
    Now, I do not feel I am part of the S4 world even with my 4g.