Tepid Demand for Samsung's Galaxy S6 Edge+ has triggered a Drop of $44 Billion in Value, the worst since 1983
In July we posted a report titled "Samsung Confirms Crashing Galaxy S6 Sales Hurt Q2 Financials with Poor Q3 Profit Forecast Duly Noted." In August we posted another report titled "Samsung's New Galaxy S6 Slammed for having no Added Value…" and reported on Samsung desperately trying to win back their lost customers with a free 'test drive' gimmick. Last week they added up to $200 in extras to lure customers away from Apple's iPhone 6 and 6 Plus. Today it's being reported that Samsung is crashing again.
According to a new Bloomberg report "Tepid demand for Samsung Electronics Co.'s newest Galaxy smartphones triggered a fifth straight monthly decline for the electronics maker, wiping out about $44 billion in market value since April.
Shares of the world's biggest smartphone vendor slumped 8.1 percent this month, extending their longest losing streak since December 1983. Samsung dropped almost $12 billion of value in August alone as the South Korean company surrendered market share to Apple Inc. and Chinese competitors.
Samsung's decision to steal a march on Apple and advance the release of new Galaxy smartphones failed to dispel pessimism about its second-half earnings. Apple is expected to take the wraps off a new iPhone on Sept. 9 and release it in time for the crucial end-of-year holiday shopping season.
The report lastly noted that Lee Seung Woo, an analyst at IBK Securities Co. in Seoul stated that "We all know its smartphone business isn't doing well. I can't really figure out when the stock will stop declining. The fundamentals look problematic."
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