Samsung’s Share Looses US $ 12 Billion, Erode By 6 % On Margin Concerns

006ecabcb9bbb770343c47255b15660a (1)Samsung’s market value eroded on Friday  by US $12 Billion which is 6 percent of its value due to  brokerage downgrades that have highlighted concerns about slowing sales of its flagship Galaxy S4 smartphone according to a report by Reuters.

“The share slide of more than 6 percent comes after it recently introduced two stripped-down versions of the S4, fanning worries that profit margins for its mobile business will suffer. It also follows a report that arch-rival Apple will begin a trade-in program for iPhones.

The new stripped-down S4 models will help it widen its lead in the global smartphone market and fend off Chinese competitors, but some fear that the South Korean tech giant is trading in profits for volume …” reasons the report.

The losses seen by Samsung drew immediate comparisons to Apple, which saw its share price drop starting in late 2012, carrying through to early 2013. Those losses were attributed to investor concerns that iPhone growth was slowing.

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