Samsung cuts $8 billion off its market value

January 3rd, 2014, 00:19 Posted By: wraggster

The 4.6 per cent loss on stock price value is due to investors who are nervous about the company’s mobile future.
Even though analysts have estimated that Samsung will see profit growth in its mobile sector, it will likely be lagging behind that of the previous quarter, reports TechCrunch.
The company has kicked off 2014 on the wrong foot, with a 4.6 per cent loss of stock price, resulting in more than $8 billion decrease in market value.
Investors are losing faith in the company’s mobile business, which it is reckoned future gain s in the sector are soon to come to an end.
One of the main factors that is impacting Samsung, is the price pressure entering smartphone sales – with devices such as Google’s Nexus setting the high, with higher-end devices at lower-end prices.
Google has also recently reduced the price of its Moto X – one of its flagship devices - to $399, plus offers value for money with the Moto G priced at $179.
To compete, Samsung would have to push prices lower than usual as budget devices become increasingly important, dragging down the overall profit of the mobile space.

http://www.mobile-ent.biz/devices/sa...t-value/042598

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