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SAMSUNG GALAXY S4 SALES ESTIMATES CUT BY 30%

Analysts fell under Samsung Electronics Co Ltd's marketing
spell when they made what they now admit were hopelessly
optimistic forecasts for its smartphone sales.
Samsung's huge share of the high-end smartphone market
also persuaded some analysts to downplay industry data
pointing to a fast-saturating segment, a reality that is already
eating into sales of Apple Inc's iPhone 5.
Woori Investment &Securities, one of South Korea's largest securities firms, cut its outlook for Samsung's earnings
and target share price on June 5. It was the first to adjust its
view.
A massive wave of downgrades has since followed, with forecasters including JPMorgan,Morgan Stanley and Goldman
Sachs taking a harder look at their assumptions of how well the S4, Samsung's latest Galaxy smartphone, would actually do.
Sales estimates for the S4 were slashed by as much as 30
percent, stirring investor concerns over Samsung's
mobile devices division - the company's biggest profit generator.
Investors in the South Korean IT giant have paid dearly. Samsung
lost nearly $20 billion in market value in a week as shares
plunged following the
downgrades.
"I'd say most forecasters including myself had this
conviction that they'll
outperform again - because it's Samsung," said Byun Hanjoon,an analyst at KB Investment
& Securities. "They had beaten expectations before,
which led many to believe they are bound to excel again with the S4."
The S4 sold 10 million sets in just one month of its debut in late April, outperforming its predecessor, the S3.
Yet analysts now say the high-end smartphone segment is slowing, citing lacklustre prospects in Europe and South
Korea in particular.
The S4, in reality, also lacks any real wow factor, they say.
"The Street, including Goldman Sachs, admittedly extrapolated the first-quarter earnings
momentum through the year,"