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Posted : 2013-06-12 16:57
Updated : 2013-06-12 16:57

Samsung cool on share price fall

By Kim Yoo-chul

Shin Jong-kyun
Samsung Electronics CEO

The CEO of Samsung Electronics rebutted, Wednesday, a JPMorgan report that predicted significant setbacks in Galaxy S4 sales which triggered a selloff of the tech firm's stocks.

Meanwhile, Samsung said it has no plans to sign a peace treaty with Apple over the 50 ongoing patent disputes on four continents.

"I can say sales of the Galaxy S4 smartphone are fine. It's been selling well," Shin Jong-kyun told reporters after Wednesday's regular meeting with presidents of Samsung affiliates at the group's main office in Seocho-dong, southern Seoul.

"The report (by JPMorgan) was based on its own analysis. Probably, the bank may have corrected its previous bullish estimate about the S4 sales," he said.

Shin is responsible for the global unveiling of the Samsung smartphones and tablets.

His comment marked a rare occasion for the company to specifically mention a market report.

Referring to slow demand for the flagship S4 smartphone, JPMorgan cut its share-price estimate for Samsung by 9.5 percent and lowered its 2013 earnings estimates by 9 percent.

JPMorgan insisted Samsung was expected to ship 7 to 8 million phones per month from July. Samsung is aiming to move 100 million in total; however, analysts now expect this figure to be closer to 60 million

Morgan Stanley, another major U.S.-based investment bank, also lowered its target on Samsung shares, citing less-than-expected S4 sales.

Thanks to the JPMorgan report, Samsung shares fell as much as 6.2 percent by the end of Seoul trading, recently, a four-month low and the largest single-day drop in nine months.

Shin's comments came as part of Samsung's quick response to cut down on the impact. The company's investor relations team contacted major local brokerages and provided them with background information about sales of the S4, according to Samsung officials.

Samsung said it shipped 10 million S4s globally in the month since the device was released.

Shin also confirmed a plan to release a sequel of the Galaxy Camera — the Galaxy Camera2 — at an event in London set for June 20.

"Samsung will release our latest mirrorless camera that runs on Google's Android software," he told reporters.

Samsung is investing heavily in mirrorless cameras as it thinks increased corporate awareness and undisputable leverage in manufacturing will help it get a bigger stake in the lucrative and promising market.

The CEO confirmed Samsung has no intention of ending the patent disputes with Apple. "Patent disputes against Apple will be continue," Shin said.

The comments are the first since the U.S. International Trade Commission recently ordered the Cupertino-based outfit not to sell some old versions of its iPhones and iPads in the United States as those devices infringed on Samsung patents.

U.S. President Barack Obama has 60 days to decide whether to accept the final ruling by the trade panel or reject it.


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