Samsung Phones "Flying Off the Shelves", Posts Record $5.9B Profit
July 6, 2012 3:14 PM
comment(s) - last by
Android leader continues bullish tramp
Samsung Electronics Comp., Ltd. (
) 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. (
) in profitability.
Smartphones are not the only market dominated by Samsung. The company also is on top of the heap in
. 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
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
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. (
) and Google Inc. (
subsidiary Motorola Mobility
, 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
, "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
Galaxy Nexus smartphone
, finding probable cause that they infringed on the patents of rival Apple, Inc. (
). 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.
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RE: Can't Wait
7/9/2012 7:07:50 AM
Honestly, I'm relatively confident that I'll be able to do what I want on either operating system.
I think they both make using a phone effortless and I don't think I'd find anything I want to do but can't on either. I've owned both iPhones and Androids and they both allow you do to do whatever you want. iOS makes it simpler, but also requires that you download apps to do some things you may expect to be native, so I'm pretty indifferent.
In terms of Apps, the previously most compelling reason to get an iPhone, I believe Android has caught up or is catching up too.
I don't think SGS3 is particularly advanced, it doesn't innovate at all as far as I can see.. they added some gimmicky features like closing when you close your eyes - honestly that doesn't interest me. It doesn't put me off either. I can't see much on their phone which doesn't exist elsewhere.
Due to my indifference to the operating systems, it'll probably come down to battery life, performance and specifications when I make my decision, including things like size, weight, network speeds. I can't make that decision until the new iPhone gets released.
For me to buy a Samsung I would also need to get some confidence that the phone would get Android updates for the life of my mobile contract.
RE: Can't Wait
7/9/2012 8:30:50 AM
"I think they both make using a phone effortless and I don't think I'd find anything I want to do but can't on either. I've owned both iPhones and Androids and they both allow you do to do whatever you want."
True... That's a fair assessment that covers 99% of the purchasing public. It's a very different tone than I have ever heard from you, but fairness is a good thing, so +1 to that.
"I don't think SGS3 is particularly advanced, it doesn't innovate at all as far as I can see"
It's not really. It's using the latest and greatest stuff and has great specs and a killer screen. Samsung has stepped its way to the top. Not by releasing a single major jump, but baby steps all the way. This is just the latest step.
"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
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