Samsung sales slowdown

Samsung Electronics, the world's largest smartphone maker today faced a stock fall by 6.2% after banks downgraded the stock, claims the Bloomberg Businessweek.

Sales of the company's flagship Galaxy S4 have slowed and in the meantime company is preparing smaller and more stripped-down versions of its popular smartphones. These models might perform well in developing markets due to their lower price, but naturally this will earn lower profits as well.

However, the situation in the United States does not resemble the global smartphone market. The actual price of a GS4 or iPhone is about $600, but carriers sell for $199 because they can easily make up for the price difference over the two years on your contract.

According to a market researcher Gartner Group, sales of smartphones were relatively flat in the first quarter of 2013, while sales in Asia rose 6.4% (and in China alone the mobile-phone sales went up 7.5%).

 

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