Samsung’s stock dropped sharply in value today following a report from J.P. Morgan warning that Galaxy S4 sales would likely “disappoint” in the company’s third quarter, The Wall Street Journal reported.
Samsung (which trades on the South Korean market) ended the day down 6.2 percent at 1,427,000 won ($1,275), slashing the company’s market capitalization (the total value of its shares) by $12.4 billion to $187.8 billion. The drop was reportedly triggered by a research note written by J.P. Morgan analyst J.J Park, who noted that sales of the company’s flagship handset appear to be tapering off.
“Our supply chain checks show monthly orders have been cut 20%-30% to 7 to 8 million units (from 10 million) starting July,” wrote Park, downgrading the company’s Samsung’s share price target to KRW1,900,000 (down from KRW2,100,000).
Samsung reportedly moved 10 million units of the Galaxy S4 in its first month on the market, and the South Korean company may be unable to sustain those kind of numbers, especially in the face of the HTC One. However, Samsung is already set to roll out the water-resistant Galaxy S4 Active next month, and is expected to announce several other new devices at a press conference set for June 20 in London.