South Korean giant Samsung has decided to reduce the production of its Galaxy S4 smartphone by 10 to 15 percent. This report was provided by the Korean ET news, which said that Samsung has slashed the Galaxy S4 orders for July of this year. More reports have claimed that Samsung has ordered parts for 6.5 million Galaxy S4 handsets, which is about half of the size of the orders which the company placed in May 2013.
The report comes after claims that the Galaxy S4 has not been flying off the shelves since its release earlier this year. Analyst JP Morgan has claimed that the sales of the device are 20 to 30 percent lower than what the company expected. Such comments forced Samsung’s price of shares to decrease six percent overnight and erased around £7.2 billion off the value of the company.
On the other hand, Samsung CEO JK Shin was quick to deny the reports about the production cut. Shin said, “I can say sales of the Galaxy S4 smartphone are fine. It’s been selling well.” The CEO went on to say that the report has been made on the basis of Morgan’s own analysis and probably the bank may have corrected its previous wrong estimate about the Galaxy S4 sales.