Samsung shares plunge on negative Galaxy S4 report

Samsung's new Galaxy S4 is seen during its unveiling on March 14, 2013 at Radio City Music Hall in New York. The slim, feature-rich Galaxy S4 was introduced as Samsung's new champion in the fiercely competitive smartphone arena, scheduled to roll out in 155 countries in late April. (AFP)

Samsung Electronics shares plunged more than six per cent Friday, the biggest single-day drop in nine months, after analysts at JP Morgan forecast slower sales of its new flagship smartphone.

Shares in the world's largest smartphone maker closed down 6.2 percent at 1,427,000 won.

Traders attributed the selloff to a research note from JP Morgan analyst J.J. Park., who said  sales of the South Korean giant's Galaxy S4 might not be as strong as had been expected.

While the S4 -- launched on April 26 -- experienced stronger first quarter sales than its popular predecessor, the S3, the following quarter "is expected to be disappointing," the research report said.

"Our supply chain checks show monthly orders have been cut 20-30 percent to 7.0 to 8.0 million units (from 10 million) starting July," it added.

Samsung had looked to the S4 to expand its presence in high-end markets in the United States and elsewhere, crowding out arch rival Apple's iPhone.

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