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Samsung shares slip as demand for Galaxy S4 cools

Matt Hamblen | June 8, 2013
Decline comes amid analyst worries about Galaxy S4 sales, impact of cheaper devices and even Apple trade-in program.

Enderle said that overall initial reviews of the GS4 were not all great and there have been some concerns about overall reliability. "Samsung's marketing of the devices has been pretty weak, given it is their flagship product," he said.

(Consumer Reports, however, rated the GS4, with its 5-in. HD display, its top smartphone, dethroning the LG Optimus G, in a May 20 report.)

Enderle, Llamas and Jack Gold, an analyst at J. Gold Associates, all discounted the impact that Apple's trade-in program will have on Samsung. Llamas noted that a trade-in program wouldn't give Apple the ability to find new customers that could be Samsung customers since they are trading in older iPhones.

"I don't think Samsung has lost any mojo," Gold concluded. "It is still driving the adoption of the Android ecosystem and will continue to do well. Certainly the financial markets react, overly sometimes, to any news positive or negative, but that doesn't really have that much overall effect on what people buy."

Nonetheless, Milanesi said both Apple and Samsung face difficulties getting new customers and will need to rely more often on sales of replacement smartphones. Innovations are moving more to software improvements and away from hardware "so upgrades are harder to sell," she said.

 

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