Some analysts are admitting that they were overzealous in picking their estimates for sales figures for Samsung and its new and popular Galaxy S 4 smartphone. Some have admitted that they were overly optimistic when forecasting success for the Samsung smartphone and have reduced their sales estimates. One of the first companies to do this was Woori Investment & Securities from South Korea.
After that company made its adjustment, a wave of downgrades for Samsung began rolling in including downgrades from J.P. Morgan, Morgan Stanley, and Goldman Sachs. Some companies slashed their sales estimates for the Galaxy S 4 by as much as 30%. The downgrades sent shares in Samsung tumbling and the company lost about $20 billion in market value within a week.
Samsung was able sell 10 million Galaxy S 4 smartphones in one month so the device did outperform its predecessor. However, sales in the high-end segment of the smartphone market are beginning to slow. Typical analytics firms are now predicting Samsung will ship 7 million Galaxy S 4 units compared to the expected 10 million units before.