Samsung’s Market Value Drops $10 Billion on Stalling Galaxy S6 Sales

According to a new report from Bloomberg Business, Samsung’s market value dropped $10 billion from its market value in July because of sluggish sales of the Galaxy S6.

The stock dropped 6.6 percent in the month of July as the world’s largest smartphone manufacturer posted its fifth straight profit decline. The company said it would cut prices for its new high-end devices, less than four months after they were released.

Samsung’s global smartphone market share fell more than three percent in the second quarter as sales of Apple’s iPhone and smartphones from Xiaomi surge. Marcello Ahn, a Seoul-based analyst at Quad Investment Management, said:

“I don’t see a clear answer for its smartphone business. The vacuum of its business momentum will persist throughout this year and even into next year, giving investors less reason to snap up shares.”

On Thursday, Samsung announced that it will be adjusting prices for the S6 and S6 Edge to maintain a steady growth in sales.

“Samsung has dropped 11 percent this year and is on course for its biggest annual decline since the global financial crisis. The company has more than $43 billion of cash.

Operating profit at the mobile phone unit slumped to 2.76 trillion won from 4.42 trillion won a year earlier. Samsung sold 89 million handsets, with smartphones accounting for more than 80 percent of those.”

The company reported net income of $4.9 billion for the second quarter ending in June. This missed analysts’ estimates and prompted the biggest decline in shares in four months.