On Friday, Samsung Electronics Co lost US$12 billion of market value. This was due to the slowing sales of its flagship smartphone, Galaxy S4.
The share fell off by more than 6% that came right after the recent introduction of two S4 versions according to reports. Samsung's strong rival, Apple will begin trading program for iPhones.
The stripped down S4 models will aid to widen the company's leads in the smartphone market worldwide. Some fear; however, that the tech giant is trading its profits in volume.
According to analysts, the sales for the high-end version of S4 has slowed down after its rapid sales during its launch last April.
JPMorgan Chase & Co. slashed its earnings estimates for the new Samsung smartphone. It was decreased by 20 to 30% due to the weakening demand in Europe and South Korea.
Fitch Ratings also announced Thursday that it was not planning to increase Samsung's A+ rating.
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