Weakness in Samsung Galaxy S4 Sales Opens Doors for Peers (BBRY) (MSFT) (AAPL)
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Apple (Nasdaq: AAPL), Microsoft (Nasdaq: MSFT), and BlackBerry (Nasdaq: BBRY) are all up on the session as one of the largest players in the handset game might be showing some weakness.
Reuters reports that analysts are now taking a more sanguine approach to estimates on sales of Samsung's Galaxy S4 smartphone. After reporting sales of about 10 million S4 units in its first month available, some speculate that momentum has slowed.
Indeed, analysts have taken average shipment estimates down 10 million per month to 7 million each month. For the year, BofA/Merrill Lynch lowered expectations from 70 million down to 65 million S4 units and the loss of 5 million units could cost Samsung about $1 billion in operating profit.
Estimates have come down in the past month the three-months ended June to about 10.4 trillion won, which would still be a record for the South Korean company.
Lower sales may mean that consumers are looking elsewhere for devices. Google (Nasdaq: GOOG) might see a little risk in consumers switching to Apple iOS, Microsoft Windows Phone, or BlackBerry's hot new BB10 operating system. But, the slew of devices being offered running Android means that risk to Samsung wouldn't necessarily translate to lost Android sales. Consumers could also be picking up an HTC, Lenovo, or other Android-equipped device versus the S4.
Shares of the tech companies, save for BlackBerry, are all up on Monday's session.
Reuters reports that analysts are now taking a more sanguine approach to estimates on sales of Samsung's Galaxy S4 smartphone. After reporting sales of about 10 million S4 units in its first month available, some speculate that momentum has slowed.
Indeed, analysts have taken average shipment estimates down 10 million per month to 7 million each month. For the year, BofA/Merrill Lynch lowered expectations from 70 million down to 65 million S4 units and the loss of 5 million units could cost Samsung about $1 billion in operating profit.
Estimates have come down in the past month the three-months ended June to about 10.4 trillion won, which would still be a record for the South Korean company.
Lower sales may mean that consumers are looking elsewhere for devices. Google (Nasdaq: GOOG) might see a little risk in consumers switching to Apple iOS, Microsoft Windows Phone, or BlackBerry's hot new BB10 operating system. But, the slew of devices being offered running Android means that risk to Samsung wouldn't necessarily translate to lost Android sales. Consumers could also be picking up an HTC, Lenovo, or other Android-equipped device versus the S4.
Shares of the tech companies, save for BlackBerry, are all up on Monday's session.
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