Samsung shares fell as much as 5.5% in early trade in Seoul to a four-month low of 1,438,000 South Korean won.

 

JPMorgan said weak demand for Samsung's flagship phone, the Galaxy² S4, from Europe was likely to impact earnings³. 

 

It said it now expects S4 shipments this year to be 20 to 30% lower than its previous forecast.

 

It said the firm was expected to ship 7 to 8 million units per month from July. Last month, Samsung announced that it had sold 10 million S4 units within a month of the phone's launch. 

 

JPMorgan analysts⁴ were quoted as saying by Bloomberg news agency that the S4's "peak-quarter number seems way below our previous estimates". 

 

JPMorgan lowered its 2013 earnings forecast for Samsung by 9%.

 

 

Profit warnings from analysts of other South Korea-based firms this week also dented⁵ investor⁶ morale⁷. 

 

"It's a general consensus⁸ that the profitability of Samsung's mobile business will weaken," Young Park from Woori Securities said in a note to clients.

 

Samsung has been shifting its focus to cheaper smartphones as it compete with Chinese manufacturers.

 

However, analysts said that such moves would put pressure on profit margins⁹ and slow growth momentum¹⁰ for its high-end models including the Galaxy S4.

 

"Sales of high-end handsets are lagging behind expectations, while low-to mid-end handsets are selling briskly worldwide," said Kim Young-chan from Shinhan Investment Corp.

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