Samsung has lost billions in market value this year, $12 billion just last month
When Samsung released the Galaxy S6 and the Galaxy S6 edge earlier this year many thought that the new devices will revitalize growth for the company’s high-end handsets but unfortunately Samsung wasn’t able to capitalize on the momentum. It got bogged down with supply and demand issues particularly for the Galaxy S6 edge so it missed that opportunity, the company decided to make amends by launching the Galaxy Note 5 and the Galaxy S6 edge+ earlier than planned and while there have been reports that the handsets have been performing well the jury is still out on whether or not the new handsets make any substantial improvements to Samsung’s fortunes.
Samsung has paid a heavy price for this missed opportunity, since April this year the company’s stock price has steadily been declining, shaving billions off the company’s market value. It now sits on top of a $44 billion market devaluation, losing $12 billion in just last month when its stock tumbled 8.1%. The company is undoubtedly feeling the pinch from the onslaught of Chinese OEMs that are putting pressure on its low-end and mid-range smartphone business while it struggles to compete against the iPhone at the high-end segment of the market. Samsung might have to live with this slump for some time now since those OEMs are not going to be slowing down and with new iPhones just around the corner it faces an even tougher battle in key markets across the globe, the company’s next batch of high-end devices isn’t due before the first quarter of 2016 so it’s not like it can rely upon a knight in shining armor.Join the Discussion