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More Signs That Samsung Galaxy S4 Sales Are Declining

More Signs That Samsung Galaxy S4 Sales Are Declining

Samsung's beloved iPhone competitor might not be the smash hit that the company anticipated.


The South Korean tech giant took a beating last week after an analyst claimed that Galaxy S4 shipments would decline in July.

While that assessment was not as grim as it sounded (Samsung could still match or beat the sales of the Galaxy S III even if the shipments are reduced), it is a very familiar tale for the industry.

Apple (NASDAQ: AAPL), Samsung's chief competitor, is no stranger to negative reports that have hindered the stock and diminished the company's value. After several years of successful growth, analysts have gotten to the point where it is all but impossible for Apple to meet their expectations. Thus, Apple shares have continued to plummet, falling more than 21 percent year-to-date.

Now that Samsung has experienced a couple years of growth, it seems that analysts are ready to give it the Apple treatment. Unfortunately, the rumor mill is ready to do the same.

According to DigiTimes, Samsung may be planning to reduce the parts and components orders for the firm's flagship phone, the Galaxy S4, during the third quarter.

The reduction may have already begun, however, as DigiTimes' sources believe that Samsung reduced its supply orders during the second quarter (which ends this month) as well.

This does not guarantee that Galaxy S4 sales will decline, but it is an indicator that consumer demand may be waning.

Samsung could pick up the slack, however, by releasing several versions of the Galaxy S4. The company is reportedly planning to unveil the so-called Galaxy S4 Mini during its highly anticipated summer event on June 20.

That's not the only Galaxy S4 variation, however. Samsung also unveiled the Galaxy S4 Zoom this week, marking the first time that the company has applied a digital camera-style zoom lens to a smartphone. The device is smaller and weaker than the true Galaxy S4, but the camera could be a compelling reason for consumers to choose it over other smartphones in its class.

In April, Samsung unveiled the Galaxy Mega, a new line of Galaxy smartphones that reach a maximum size of 6.3 inches. This makes it one of the largest smartphones in the world. It dwarfs the Galaxy Note II and LG Optimus G Pro, which seem small in comparison, and is a tad bigger than Huawei's 6.1-inch Ascend Mate.

With these and other smartphone models, Samsung may not suffer a financial loss. The actual Galaxy S4, however, may look less impressive as sales are spread across the entire Galaxy line.

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ


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