Sometimes we have to report the not-so-exciting news too... apparently what happened to Apple is now happening to Samsung. When Apple's iPhone was on top, they became the darling of the stock investor's world and it rose like a rocket. After Android and Samsung took the crown away, their stock tumbled. Much of that could be attributed to the fact that the iPhone 5 was a bit of a let down. It didn't really offer any large advancements or improvements to the previous gen iPhone 4S, whereas the Samsung Galaxy line was continuously pushing the envelope on features, functions and styling. Because of this and because Android's star was rising taking marketshare away from Apple, investors decided to follow the new guy on the block, Samsung.
Now Samsung is in a similar boat. Apparently, consumers think the same thing about the SGS4 that the did about the iPhone 5. It is an amazing product, but it doesn't differ enough from the SGS3 for owners of the SGS3 to swap into it. Because of this, and because of excellent sales of the HTC One, the new flagship SGS4 from Sammy isn't selling as well as projected. It's still selling phenomenally well, but when it comes to investors opening up their wallets the bar is sometimes set too high. JPMorgan reduced earnings estimates as monthly orders for the S4 were cut by 20-30 percent to 7-8 million from July. This was due to weak demand in Europe and South Korea. In the face of this "disappointment," investor's have dumped some of their shares of Samsung stock, bringing it down by 6.2%. This may not seem like much, but it equates to a $12 Billion dollar reduction in market valuation.
Ironically, the phone is selling faster and in higher numbers than the previous gen Galaxy S3 did, yet because expectations were set too high, it resulted in a stock drop. It's amazing what a large effect the psychology of investors can have on the movement of funds in this global economy.