Print 40 comment(s) - last by zlyles.. on Jul 25 at 11:12 AM

Android leader continues bullish tramp

Samsung Electronics Comp., Ltd. (KSC:005930) last year established itself as the new leader in both global smartphone sales and global feature phone sales.  The South Korean firm is also second only to California OEM Apple, Inc. (AAPL) in profitability.

Smartphones are not the only market dominated by Samsung.  The company also is on top of the heap in the DRAM and display markets.  Samsung's revenue came in just a bit lower than its 50T won forecast, at 47T won ($41.4B USD) in an earnings preview forecast aired late this week.

Earnings were driven, in part, by a highly successful international launch of the Galaxy S III smartphone.  Nho Geun-chang, analyst at HMC Investment Securities in Seoul, predicts sales of 19 million Galaxy S III smartphones for the June-ending quarter, in a statement to Reuters.  

He states, "Revenue is below our forecast, which suggests price pressure was more severe than had been expected in products such as televisions and home appliances.  Earnings will be stronger in the current quarter as sales of the high-end Galaxy S III will increase dramatically and drive the telecom division's earnings to above 5 trillion won."

The success is a welcome development given that the company is going through a leadership transition, with Kwon Oh-hyun taking the reins as chief executive officer this quarter.

Samsung is in rare air in the smartphone market.  Its Android counterparts HTC Corp. (TPE:2498) and Google Inc. (GOOGsubsidiary Motorola Mobility have stumbled, slipping to smaller market shares.

Both HTC and Samsung did share one common thread in their recent earnings reports, however.  Both companies were impacted by a weak Euro.

Samsung, however, is looking at aggressively moving to counteract these adverse affects.  An unnamed executive told Reuters, "Europe is our biggest consumer electronics market and we may have to initiate cost cuts and product price increases should the euro fall further from the current level.”

Our smartphones are flying off the shelves, with some outlets reporting 40-60 percent sales growth, but that's distorting the overall trading outlook which is more challenging due to the weak global economy and a weak euro."

In the U.S. Samsung did suffer some setbacks in the second calendar quarter with courts deciding to ban the Galaxy Tab 10.1 tablet and Galaxy Nexus smartphone, finding probable cause that they infringed on the patents of rival Apple, Inc. (AAPL).  The tablet was less of a blow, as it had struggled in sales, but the ban on the Galaxy Nexus, one of Samsung's prize models, was a major setback.

Samsung is currently appealing the Galaxy Nexus ban.

Source: Reuters

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

These kinds of numbers cannot be ignored...
By bupkus on 7/8/2012 12:54:49 PM , Rating: 2
The writing is on the wall my friends. Apple has turned to litigation because they fear the Samsung Juggernaut. The boat has set sail with those still holding tickets left waiting.

Apple is giving too much attention to the legal battle and not creating the next big thing. Steve is gone and the myopic will to litigate has replaced the visionary drive to "innovate".

By retrospooty on 7/8/2012 1:19:26 PM , Rating: 2
"Apple is giving too much attention to the legal battle and not creating the next big thing. "

That's a very good point. They need to do some work on IOS to modernize it. Innovate instead of litigate or the world will pass you by.

RE: These kinds of numbers cannot be ignored...
By testerguy on 7/9/2012 7:10:33 AM , Rating: 2
Why do tech guys make these silly assertions. Apple has a legal team. It can shrink and grow INDEPENDENTLY to the rest of the organisation. Much like the design team can. Since Apple has more money than it could ever need to employee anyone it wants, clearly they are not having to choose between lawyers or designers.

If you don't think they're working on the next big thing or that legal cases has changed their development department in any way, you're wrong.

By retrospooty on 7/9/2012 8:38:05 AM , Rating: 2
Of course the legal team doesn't interfere with design teams... The comment is more pointed to Apple's IOS 6 and it's apparent lack of innovation. It looks alot like more of the same. It's not that the legal team has effected anything, just more like Apple as a company seams more interested in stopping the competition with lawsuits than with innovation.

Apple can of course at any moment release some surprise that changes minds on that, but looking at IOS6 beta, its not there. I am lucky enough to get to play with all 3 major modern OS's (and Blackberries too) on a regular basis as I set them up for users. To me, the iPhone is just looking aged. The iPhone 5 with a larger screen and I assume faster guts will change that hardware-wise, but IOS6 is still IOS3 IMHO.

By testerguy on 7/13/2012 2:59:54 AM , Rating: 2
If you had worded your original comment like this, I wouldn't have disagreed.

I think a lot of people think that Apple pursuing legal cases means that they suddenly prioritise that over development, which is simply not true.

In terms of IOS6 - I agree they have kept it largely the same, but to be honest I expect that's probably a conscious and deliberate choice they made (whether that is good or bad). They probably believe that if something isn't broken, don't fix it - they could alienate existing users if they changed something and the users didn't like it as much.

I personally don't judge innovation of a product on whether or not they gave it a lick of paint - the visual side interests me very little (provided it's easy to use), I'm more concerned about what it can do, how stable it is, how fast it is, how well it handles battery etc.

By bug77 on 7/11/2012 9:42:18 AM , Rating: 2
You're on to something. Apple's strategy was release something, hype it up for a few years, release something else, rinse and repeat.
Since Jobs came back, the released the Macbook(Pro), advertised the hell out of it then moved on to ipods. Then they moved to iphone. And then the ipad. Within a year or two, we should be ready for their next announcement, if the trend continues.

"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser

Latest Headlines
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki