Samsung Electronics drops $12bn in market value as Galaxy S4 sales slow
Samsung Electronics dropped $12bn in market value on Friday, thought to be related to slowing sales of the Galaxy S4 smartphone.
Smartphone: The Galaxy S4 launched in April
The news follows the recent introduction of two stripped-down versions of the smartphone, which sparked fears that profit margins could be hit.
The Galaxy S4 launched in April and became the brand's fastest-selling smartphone. However, the US rollout of the device was hit by delays after 'overwhelming' global demand, prompting concerns sales could be affected.
Shinhan Investment Corp analyst Kim Young-chan told Reuters that sales of high-end handsets were lagging behind expectations, while low to mid-end handsets were selling well.
"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," he told the news agency.
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