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Friday, June 7, 2013

Samsung Smartphone Sales Declines as iPhone starts offering new and Cheaper versions to its users


Samsung Electronics Co lost $12 billion in market value on Friday, hit by brokerage downgrades that have underscored concerns about slowing sales of its flagship Galaxy S4 smartphone. 

The share slide of more than 6 percent comes after it recently introduced two stripped-down versions of the S4, fanning worries that profit margins for its mobile business will suffer. It also follows a report that arch-rival Apple will begin a trade-in programme for iPhones. 

Analysts say sales momentum for the high-end version of the S4, which became its fastest selling smartphone since it launch in late April, has slowed. 

"Sales of high-end handsets are lagging behind expectations, while low- to mid-end handsets are selling briskly worldwide," said Kim Young-chan, an analyst at Shinhan Investment Corp. 

"As the portion of low- to mid-range handsets is expected to increase in Samsung's overall mobile phone business, this has also sparked concerns about thinning margins and lower growth." 

Analysts also expect " with With Apple widely expected to announce an older iPhone trade-in programme and also a new cheaper iPhone, overall growth prospects for Samsung's smartphone business might be affected . Mobile Phones has shown brisk sales in the last 5 years and the business is going through a reality check after the  unprecedented  upside in Business

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