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.
This article is over a month old, voting and posting comments is disabled
RE: These kinds of numbers cannot be ignored...
7/13/2012 2:59:54 AM
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.
"DailyTech is the best kept secret on the Internet." -- Larry Barber
Apple Granted Preliminary Injunction Against Samsung’s Galaxy Nexus
June 30, 2012, 3:10 AM
Apple Wins Galaxy Tab 10.1 Ban in U.S.
June 27, 2012, 11:28 AM
HTC Sees Poor Sales in Europe, But Stronger Than Expected Chinese Sales
June 7, 2012, 7:40 PM
Samsung Galaxy S III To Hit all Four Major U.S. Carriers Starting at $199 on June 21
June 4, 2012, 9:48 AM
Google Completes Acquisition of Motorola Mobility, Layoffs Likely
May 22, 2012, 11:47 AM
New Reversible "Type-C" USB Plug Coming in Mid-2014
December 4, 2013, 10:38 AM
IDC Reports PC Shipments Will Decline by Double Digits in 2013
December 4, 2013, 10:18 AM
Canon EOS M2 Digital Camera Unveiled In Japan
December 3, 2013, 11:10 AM
Applebee's to Place Tablets at Each Table for Paying the Check, Ordering Food
December 3, 2013, 10:01 AM
Quick Note: Sony PS4 Sells 2.1 Million Units
December 3, 2013, 8:16 AM
UK iPhone Sales Show 5S Preference by Three-to-One Over 5C
December 2, 2013, 10:55 AM
Most Popular Articles
NSA Snares Americans' Porn Viewing Histories in Effort to Target Muslims
December 1, 2013, 9:00 PM
Coalition of 20+ Tech Firms Backs MRAM as Potential DRAM, NAND Replacement
November 29, 2013, 11:59 PM
Dow Chemical to NYC City Council: You Don't Even Know What Styrofoam is!
December 2, 2013, 8:30 PM
Fed Up With Cheating OEMs, Microsoft Trolls Chromebooks in New Ad
November 27, 2013, 4:09 PM
OCZ Goes Bankrupt, SSD Assets are Targeted by Toshiba
December 1, 2013, 9:58 PM
Latest Blog Posts
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
U.S. Army Developing Cyber, Electronic War Arsenal
Oct 31, 2013, 4:49 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information