Samsung is Virtually Tied With Apple, Sells 36.5M Smartphones in Q4
January 27, 2012 10:29 AM
comment(s) - last by
Samsung's semiconductor unit also posts a strong quarter; company loses 3G anti-Apple lawsuit in Germany
Samsung Electronics Comp., Ltd.'s (
) created a lot of excitement, when it
hinted at a blowout quarter
, in pre-earnings talk. But that excitement has since been overshadowed by Apple, Inc.'s (
) own record-setting 3 months. Now Samsung has popped back into the picture, with its actual earnings results.
I. A Virtual Tie With Apple
After jumping out to a
substantial 65 percent sales lead
over Apple in Q3 2011, Samsung is now in a virtual tie with its surging rival in global sales. Samsung moved 36.5 million units in Q4 2011, compared to 37 million from Apple.
Smartphone sales were a boon for Samsung, whose telecommunications unit reported 17.82T Won (~$15.33B USD) in revenue. That's approximate 38 percent of the South Korean electronics conglomerate's total 47.3T Won (~$42.14B USD) in sales. The unit also pulled in net revenue (profit) of 2.64T Won (~$2.35B USD), over half of Samsung's total profit of 5.30T Won (~$4.72B USD). Overall the telecom unit’s revenue was up 52 percent versus last year, while profit was up 79 percent.
While Samsung's budget feature phones
continue to surge
creeping towards Nokia
, its iconic smartphones are drawing the most attention. Samsung was the first OEM to sell an Android 4.0 Ice Cream Sandwich phone in the U.S., launching
the Galaxy Nexus
around Christmas time. Its Galaxy S II lineup
continues to sell strongly
, as well.
The company has a strong equity position, with over 26.88T Won (~$23.95B USD) in cash. The company plans 47.8T Won (~$41.59B USD) to research in development in 2012 -- far more than Apple.
Samsung was boosted by strong smartphone and mobile device sales [Image Source: 9to5Google]
Speaking of Apple, Samsung also continues to
profit off the success of its rival
(and others), thanks to its semiconductor division. Aside from smartphones, semiconductor sales accounted for the majority of the remaining profit for Samsung. The unit reported 2.31T Won (~$2.06B USD) on sales of 9.17T Won (~$8.17B USD). Samsung is reportedly
the only remaining profitable DRAM maker
. It continues to perform strongly in the system-on-a-chip business, and it actively expanding production on both the 3x nm (DRAM, SoC) and 2x nm (NAND) nodes.
Samsung's Digital Media and Appliances (DM&A) and display panel businesses struggled amidst slowing stables and the floods in Thailand that hurt component supply. They did remain profitable, though. The DM&A pulled in 16.96T Won (~$15.11B USD) in sales, but made only 570B Won (~$507.8M USD) in profit.
Overall this will be remembered as a very strong quarter for Samsung, to cap off a record setting year. But it will also be overshadowed by Apple's
II. "Sammy" Loses a Round in its German Case Against Apple
In related news, Samsung has lost yet another lawsuit against Apple, this time in Germany. Both Samsung [
] and Apple [
] have been on losing streaks of late in their lawsuit campaigns against each other. International courts seem to increasingly be opting to throw out as much of these lawsuits as possible, wary of giving either company an unfair competitive advantage. Both companies are under investigation in the European Union
for abusing the intellectual property system
International courts are growing tired of Apple and Samsung's lawsuits. [Image Source: Grande Prairie]
Judge Andreas Voss, the presiding judge in Mannheim Regional Court, Mannheim, Germany, gave no reason for the dismissal, according to Florian Mueller of
. Samsung could still appeal his decision to the Karlsruhe Higher Regional Court, but it's unclear if it will.
Samsung still has 3 more 3G/UMTS cases against Apple in Germany, which it hopes will go better than its last two. Each of the cases deals with specific patents. Apple is currently pursuing a new sales ban on Samsung's new tablets, which Samsung redesigned
specially to try to satisfy
the German court's
earlier design infringement claims
A lower court ruled that the
redesign was sufficient
, allowing Samsung's tablet sales to resume. Now it remains to be seen whether that ruling holds.
This article is over a month old, voting and posting comments is disabled
RE: wait what?
1/29/2012 3:55:59 PM
The problem is that Apple reports phones SOLD, whereas virtually all other companies report phones SHIPPED. Assuming that shipped phones then also get sold the two numbers are roughly comparable but over short periods of time you will get weird results if you try to compare them because it takes time for shipped numbers to become sold numbers.
As an example, if everyone magically stopped buying Samsung phones, then that shipped number eventually also becomes the "buried in landfill" number or however they get rid of them. The actual sold number for those shipped phones then becomes 0. However if people magically stop buying iPhones, the sold number remains the same as it is already a historical fact.
To properly compare the numbers you would have to know the average latency between a Samsung phone shipping from its factory to being sold in some region. Then you could fudge the numbers a bit to be comparable.
However, the only thing that really matters is sales, and those are as reported in the article. iPhones get a massive boost this quarter, Droid will likely combine for a bigger yearly total.
"We are going to continue to work with them to make sure they understand the reality of the Internet. A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis
Report: Microsoft Gave Nokia a $250M USD Windows Phone Payday in Q4
January 26, 2012, 1:22 PM
Dutch Court Slaps Apple With Another Loss in its Anti-Android Crusade
January 24, 2012, 7:46 AM
Samsung Loses 3G Patent Case Against Apple in Germany
January 20, 2012, 8:42 AM
A Cupertino Comeback: Apple and Android are Almost Tied in U.S. Sales
January 18, 2012, 1:07 PM
Analysts Expect Blowout Quarter for Samsung, Smartphone Sales of 35 Million
January 4, 2012, 8:01 PM
Numerous Leaks Detail 4.7" iPhone 6 Processor, RAM, Cellular and NFC Capabilities
August 29, 2014, 10:37 PM
Buzz Grows Over Upcoming Lenovo Vibe X2's "Layered" Rim, Intel Chip
August 29, 2014, 4:59 PM
Sprint Intros Free Wi-Fi Calling for Overseas Travelers
August 29, 2014, 11:30 AM
Nokia HERE Maps to Arrive on Samsung Galaxy Smartphones This October
August 29, 2014, 9:14 AM
Microsoft's Standalone Kinect 2 Goes On Sale Oct. 7 for $150
August 28, 2014, 4:33 PM
Apple Builds Not-So-Secret Secret 3-Story Tower for iPhone 6/iWatch Unveil
August 28, 2014, 3:41 PM
Most Popular Articles
Microsoft's Surface 2 Tablet Family Gets a $100 Price Cut
August 25, 2014, 1:16 AM
Owner of "Decepticon" Maserati Ordered to Appear in Court This Thursday
August 25, 2014, 7:55 AM
LG Posts Teaser Video of Its “Round Face” G Watch R Smartwatch, Set for IFA Lauch
August 24, 2014, 2:49 PM
Windows 9: "Upgrade Now" Button Coming for Enterprise Updates, ARM Preview in H1 2015
August 26, 2014, 8:00 PM
Second ZMapp-Treated Patient Dies of Ebola, Supplies Run Out
August 25, 2014, 7:03 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information