Samsung Stock Falls to 2-year Low, Lowers Profit Forecast

It seems as if lately, Samsung has started to lose some momentum. Now while they have seen some decreases in their stock and also their profits, they are still making a ton of money. But we also saw this same thing when HTC was on top of the mobile world a few years ago, and they weren’t able to make a turn around and it got worse and worse. So hopefully Samsung has learned from their competitors mistakes and can make a decent turn around before it’s a really big drop in profit.

Samsung lost about 2.3% on the market, dropping them to about 1.1 billion won. Really doesn’t seem like a lot, but remember that they also got about $30 billion wiped away from their market value. Which is a big deal. Samsung also lowered their profit forecast from 5.7 trillion won to just 4.7 trillion won. Samsung Securities Co., noted in a report this week that “its smartphones have lost appeal — as evidenced by the solid performances of high-end Chinese models and unexpectedly strong iPhone 6 pre-orders.” I’m not so sure that their smartphones have lost their appeal, but that people are starting to see that there are other choices out there and that Samsung’s stuff hasn’t changed a whole lot in the last few years.

However, Samsung Securities Co., is correct. Chinese manufacturers are definitely making a dent in Samsung and other OEM’s marketshare. We’ve seen Xiaomi, ZTE, Huawei, Meizu and other Chinese OEMs getting bigger and bigger over the last year or so. And that has to eat into someone’s market share, and since Samsung has the most, it would be theirs.

Samsung has the Galaxy Alpha coming to the US this week, and the Galaxy Note 4 coming next month. So we could see some big numbers from Samsung in the next month or so. But I don’t think we’ll see Samsung sell 10 million Galaxy Note 4’s in a weekend, like Apple did with the iPhone 6. That type of success is unmatched right now.

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