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The Samsung capitalization fell to $44 billion due to weak sales of its flagship smartphones

Due to the decrease in stock prices resulting from the decline in financial results and a weak Outlook, Samsung, the world’s largest smartphone maker, dropped to 13th place in the ranking of the most valuable it companies from the perspective of market capitalization. From April 2015, the price Samsung has dropped a total of $44 billion due to weak sales of high-end smartphones of the South Korean company.

According to Bloomberg, in August the market value of Samsung fell by almost $12 billion during the month the company’s shares fell by 8.1%, while the decrease in quotations of the brand continues for five consecutive months, which is the longest decline since December 1983. At the same time, the South Korean company earnings decreased for five consecutive quarters and is expected in the third quarter of 2015, the rate will fall again.

Profit Samsung continues to fall due to weak smartphone sales. In April-June net profit of 5.8 trillion won (about $5 billion), which is 8% lower than a year earlier. In April-June 2015 the company’s share in the global smartphone market fell more than 3% due to rising sales of iPhones and strong competition from Chinese brands such as Xiaomi.

Because of the price drop Samsung flew out of the top ten most valuable global IT corporations, dropping to 13th place. In 2014 the company was awarded in the ranking of the 9-th line, in 2013 the 7th, and in 2012 the 6th.

According to IDC, in the second quarter of the current year the share of Samsung in the global smartphone market amounted to 21.7%, while a year earlier the figure was 24.8 percent. At the same time, Apple has significantly improved the position of its market share increased by 2.4% and reached the level of 14.1%.

In an attempt to strengthen its position in the smartphone market, Samsung released in August, the Galaxy S6 edge+ and Galaxy Note 5, and then offered the American iPhone owners are free to rent for the month of one of its flagship smartphones.

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