Samsung CEO JK Shin has spoke out in regards to a recent JPMorgan report. Said report, for those who may have missed that, suggested the GALAXY S 4 was falling short of sales expectations. In addition to the comments from the report, JPMorgan also cut the share price estimates by 9.5 percent and lowered the 2013 earnings estimates by 9 percent. Following the JPMorgan report, a similar report was posted by Morgan Stanley.
Anyway, in response to the JPMorgan report, JK Shin said “the report was based on its own analysis” and then went on to talk about how they may have been correcting their “previous bullish estimate about the S4 sales.” Or perhaps the key point here, Shin made it clear that sales of the GALAXY S 4 smartphone “are fine” and that the handset has been “selling well.”
Looking forward through 2013 and we have GALAXY S 4 sales estimates of anywhere from 60 to 100 million. It was reported that Samsung is hoping to sell 100 million, however analyst estimates have that number closer to the 60 million side. While we don’t often see Shin respond directly to individual reports, these can have an effect.
It was said the JPMorgan report caused Samsung shares to fall 6.2 percent by the end of Seoul trading. What that means for the bigger picture is that was a four-month low and also the largest single day drop in nine months. Aside from the comments from Shin, it looks like Samsung’s investor relations department has also taken a pro-active approach.
A Korea Times report mentions how “company’s investor relations team contacted major local brokerages and provided them with background information about sales of the S4.” And in the end, the GALAXY S 4 saw 10 million in sales during the first month of availability.