In a rare public statement aimed at reducing the financial effect of bad analyst speculation, the CEO of Samsung Electronics denied reports from JPMorgan
predicting a slackening of Galaxy S4 sales triggering a selloff of the company's stock. Further remarks by the CEO at the same event affirmed the company's commitment to the ongoing patent battles with Apple.
"I can say sales of the Galaxy S4 smartphone are fine. It's been selling well," said CEO Shin Jong-kyun to a group of reporters after a meeting with Samsung affiliate presidents. "The report was based on its own analysis. Probably, the bank may have corrected its previous bullish estimate about the S4 sales."
JPMorgan reduced estimates on Samsung share prices by 9.5 percent in conjunction with its report on slow sales of the new Samsung flagship handset. The report drove Samsung stock down six percent in 24 hours, the largest single-day drop in nine months.
Samsung claims to have shipped 10 million units of the phone globally since its release, and is trying to unload 100 million in a year. JPMorgan and Morgan Stanley think this number will be closer to 60 million.
When asked if the company was going to sign a patent deal with Apple, ending the legal hostilities between the pair, the CEO said that "patent disputes against Apple will be continued." Samsung has been recently bolstered by a rare win
at the US ITC, which barring a presidential veto or successful Federal court appeal, will prevent the import of some older models of iPad, and the iPhone 4 into the US.