Slackening sales for the Samsung Galaxy S4 are due to its lack of a convincing USP, it has been claimed, amid gathering signs that analysts’ pre-release expectations were more than a little hyperbolic.
Of 43 analysts surveyed by Reuters, 17, including those from JP Morgan and Morgan Stanley, have cut their estimates for the Galaxy S4’s sales by up to a quarter in the last month, contributing to the company’s market value diving by almost $20 billion.
Unnamed analysts cited by the business news specialist claim that the handset's weaker-than-expected sales are principally due to the fact that it “lacks any real wow factor” to really set it apart from rival smartphones.
This is despite Samsung’s attempts to differentiate its phone with user-interface innovations, such as tilt-to-scroll and the eyeball tracking technology-enabled Smart Pause intelligent pause mode.
The number wonks cited by the site also claim the Galaxy S4 has been affected by a wider slowdown in demand for high-end handsets, most notably in Europe and South Korea.
Samsung CEO JK Shin acknowledged the downgrades last week, but claimed that sales of the Galaxy S4 are “fine” and implied that financial sector movers and shakers had been unrealistically bullish.