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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



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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.


"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov














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