Sluggish sales of Samsung Electronics Co.’s Galaxy S6 smartphones helped trigger a share decline that wiped more than $10 billion from its market value in July — almost twice the capitalization of local rival LG Electronics Inc.
The stock dropped 6.6 percent this month as the world’s biggest smartphone maker posted its fifth straight profit decline and said it would cut prices for its new high-end devices less than four months after their debut. The Suwon, South Korea-based company also warned of slowing growth in the device market and tepid demand for memory chips.
Samsung’s global smartphone market share fell more than 3 percentage points in the second quarter amid surging sales of Apple Inc.’s iPhones and tougher competition from Chinese vendors including Xiaomi Corp. It misread demand for the S6 models released in April, failing to produce enough three-sided screens for the Edge while the regular version struggled against the bigger iPhones. Read More: