Bernstein Note Says Concerns Over Samsung Shipments Exaggerated

In a note from Bernstein analyst Mark Newman this morning, concerns over Samsung shipments were shrugged off following channel checks with Galaxy S4 suppliers. The report went on to say that key suppliers had indicated production was in line and on schedule, giving no reason for investor concern over the slowing pace of Galaxy S4 sales. Currently 23-24 million Galaxy S4 units are assembled, which is between 70 and 80 percent of the peak month production which occurred in May of this year. The note stated that this production rate should be maintained for a few months until the Galaxy Note 3 production ramps up. Newman also said that they expect mobile margins to decline starting in the first quarter of 2013 as the company starts to focus more on low-end smartphones and tablets. Later on the report stated that semiconductors would take over t drive a majority of the company's operating profit growth. The note could affect sentiment on the smartphone segments of Microsoft

, Apple

, and Google

. Bernstein maintained its Outperform rating on the company this morning.