Samsung has missed its second quarter earnings forecast, mirroring its rival Apple, which has in the recent past experienced shrinking earnings.
Reuters reports the company’s guidance ahead of full quarterly results due on July 26 missed the average analyst estimates.
The disappointing estimate saw shares fall by more than three per cent today. Shares have fallen by 17 per cent since early June.
HumanIPO reported last month Samsung’s share price took a hit worth US$12 billion due to fears of slowing Galaxy S4 sales.
Despite having shifted a record breaking 10 million S4 handsets in just a few weeks, the firm’s share price plunged over fears interest in the smartphone is waning.
A research note from JP Morgan analyst J.J. Park predicted shipments would come in 20-30 percent lower than previously expected.
The dive in share price, the biggest Samsung has seen in nine months, apparently wiped US$12bn from the Korean giant’s market capitalisation.
While the S4 – launched on April 26 – experienced stronger first quarter sales than its popular predecessor the S3, the following quarter “is expected to be disappointing”, the research report said.
“Our supply chain checks show monthly orders have been cut 20-30 percent to 7.0 to 8.0 million units (from 10 million) starting July,” it added.
