Samsung’s 32-Year, $44 Billion Slip

Investors continue to punish Samsung’s stock on the heels of poor demand for the company’s smartphones. As noted by Bloomberg on Monday (Aug. 31), the shares have seen five straight monthly declines, with a total market value of as much as $44 billion disappearing since April.

This past month alone, Samsung shares slumped 8 percent, with $12 billion in value lost, and the five-month streak of losses is the longest that has plagued the company’s common stock since 1983. The loss of market cap has been among the biggest in the Korean KOSPI index over the past six months, the newswire reported.

The key to the most recent declines has been the market share loss to Apple and Chinese peers in the competitive smartphone market. That slide was not stanched by the revved-up and moved-up release of the Galaxy smartphones. Apple, for its part, is widely expected to unveil its own latest iPhone as early as next week and begin shipping in wide release ahead of the holiday shopping season. Total market share for Samsung has slipped more than three percentage points as of the data for the second quarter, and its perch as the biggest seller in China, the biggest market in the world, is no more. It also misjudged demand for its models that debuted in April, with not enough screens produced for the Edge, while too many “regular” models lost share against Apple.

In terms of financial performance, Samsung’s net income has languished for five consecutive quarters. And forward consensus fares no better as third-quarter net income is estimated at 5.3 trillion won, which would be down from 5.6 trillion won in the three months ended in June.

And in a recent technology stumble, the company said that its Galaxy Note5 would break if its stylus were inserted backwards into its housing slot.

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