The Samsung Galaxy S4 is the most expected smartphone this time of year. The company hopes that it will make a comeback on the first position when it comes to sold units. However, the release of the Galaxy S4 might have a side effect on Samsung's stock, at least this is what an analyst thinks.
Adnaan Ahmad is an analyst at Berenberg Bank who advised the Apple shareholders to sell their shares instead of buying, his price target going down from $800 to $360 for Apple shares. He thinks that the same thing will happen to the Samsung shares.
Ahmad made a complex analysis of the smartphone industry and a certain part of the report is about the Samsung Galaxy S4, which will be announced on March 14. He says that Samsung will experience an "iPhone 5 moment" once it will launch its latest flagship. The "moment" is when Apple's stock was skyrocketing shortly after the release of the iPhone 5. After that, Apple's share price has dropped dramatically despite the fact that the company managed to sell millions of handsets after the announcement of the iPhone 5, and the cash flow was even bigger than before.
The analyst thinks that the same thing will happen to Samsung. In other words, we expects Samsung's stock to fall in the months which follow the release of the Galaxy S4. Of course, this is just a supposition and we don't have to believe it.
According to previous reports, the company is expecting to sell over 100 million Samsung Galaxy S4 units. Rumors has it that Samsung is preparing to ship around 10 million units every month. If this is true, will Samsung's stock be affected?
As always, we don't have to look at analysts like they're prophets , because they aren't always accurate with their prediction, and we're talking about a single individual, after all. Let's wait for the Galaxy S4 to be launch and we'll see what will happen in the following months.
Even if Samsung's stock does drop, it's the shareholders' problem, not ours. The good news is that there are only six days remaining until the announcement event in New York.