All men are frauds. The only difference between them is that some admit it. I myself deny it. - H.L. Mencken
KOREAN PHONE MAKER Samsung's share price took a hit worth $12bn on Friday due to fears of slowing Galaxy S4 sales.
Despite having shifted a record breaking 10 million Samsung Galaxy S4 handsets in just a few weeks, the firm's share price plunged 6.2 percent on Friday over fears that interest in the smartphone is slipping after analysts predicted that Galaxy S4 shipments will come in 20-30 pecent lower than previously expected.
Samsung's profit margins also worry investors due to the influx more affordable Galaxy S4 models such as the Galaxy S4 Mini and Galaxy S4 Active, Reuters reported.
The dive in its share price, the biggest Samsung has seen in nine months, apparently wiped $12bn or around £7.2bn from the Korean industrial giant's market capitalisation.
"Sales of high-end handsets are lagging behind expectations, while low- to mid-end handsets are selling briskly worldwide," said Kim Young-chan, an analyst at Shinhan Investment Corp.
"As the portion of low- to mid-range handsets is expected to increase in Samsung's overall mobile phone business, this has also sparked concerns about thinning margins and lower growth."
It's thought that Apple has had an impact on Samsung's plunging share price too, something it is probably feeling pretty smug about.
On Thursday rumours emerged that Apple will start an iPhone trade-in programme later this month, allowing users to turn in their older iPhones for newer models. This has sparked analyst fears that present iPhone users will stop buying Samsung's shiny new Android devices and will stick with Apple instead. µ