Analysts Cut Samsung's Profit Estimates By 12% After Strong Sales Of New IPhones

Analysts cut Samsung’s profit estimates by 12% after strong sales of new iPhones

BY Rajesh Pandey

Rajesh Pandey

Rajesh is a 26-year old freelance writer from Kolkata, India. He loves to tinker around with his Android devices and flash custom ROMs on them....

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Published 23 Sep 2014

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Samsung shares today fell to an all time low since 2012, thanks to Apple selling 10 million units of iPhone 6 and iPhone 6 Plus units in just 4 days.

The company’s shares declined by 2.3% in today’s trading, which is its lowest since July 2012. Since the beginning of this year, Samsung shares have declined by around 15% — wiping out $30 billion from its market value.

Even though Samsung remains the number one smartphone maker, it has been struggling recently with stiff competition from Chinese and Indian brands — leading to its market share dwindling by 7% in the previous quarter.

The strong sales of Apple’s new iPhones and the fast paced growth of Chinese OEMs has led many analysts to lower their estimates for Samsung’s profit by as much as 12% to $6.2 billion for the third quarter of this year.

Samsung had unveiled the impressive Galaxy Note 4 earlier this month at IFA, but the device will not go on sale until next month, which is going to negatively affect its Q3 performance as well.

[Via Business Week]