Samsung Posts Record $7.3 Billion Quarterly Profit
October 5, 2012 8:47 AM
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Samsung Galaxy S III
Full quarterly results are due by the end of the month
Samsung has offered up its official financial numbers for its latest quarter and has posted record quarterly profit. Samsung posted a profit of $7.3 billion, which is nearly twice the figure from the same quarter of last year. Samsung says that strong sales of high-end TVs and its
were the key drivers for the record profits.
While Samsung Electronics is riding high this quarter, most expect the next quarter to be significantly more challenging. Samsung is believed to have spent about $2.7 billion on marketing in the quarter spanning July to September alone during the London Olympic Games and to promote the new Galaxy smartphone. The estimate on marketing expenses comes from Credit Suisse.
Other reasons Samsung may see a significant decline in profitability in the next quarter have to do with higher performance related payouts to many Samsung employees thanks to the record profits experience so far this year. Samsung also has to consider the
$1 billion in damages it owes Apple for patent infringements
if it's unable to overturn the ruling.
Most analysts expect earnings to continue to climb until Q2 2013 with a decline in computer sales and a weakening global economy that will reduce the demand for electronics. Analysts are also pointing out that a misstep in the smartphone market could prove disastrous for Samsung since much of its profits rely on smartphone sales.
"The biggest risk for Samsung is competitive product line-ups from its rivals such as the iPhone 5," said Byun Han-joon, an analyst at KB Investment & Securities.
Samsung's full quarterly results are due by October 26.
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10/5/2012 11:14:35 AM
Google makes money by resale of personal usage and other statistics you make when you use their device. Makers like it because the OS cost is nothing. Google makes all their money on the back-end so they can afford to give it away. It's kind of like giving a hamster a free wheel that's hooked up to a generator that gives Google money, the wheel was free but as the hamster uses it, it begins to generate a profit for Google. It's only an illusion of "Free".
10/5/2012 12:51:00 PM
Google still makes a lot more money serving ads on iOS than they do off of their own Android platform. Obviously that's going to change with the removal of the native maps application. That will be a drop in a billion in revenue just from Apple's licensing fees alone,
what they end up collecting from users, but perhaps they'll start making that back if their own Maps app coming out in a few months ends up being a huge hit. I think it will be, but we'll see.
"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes
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