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Samsung Galaxy S III  (Source:
Samsung did well, but many worry that it won't see this amount of money rolling in next year as the smartphone market continues to grow competitive

Samsung reported strong financial earnings in the third quarter, but now faces slowed smartphone momentum in the future as the market gets more crowded.

Samsung posted $7.4 billion USD in Q3 2012 operating profit. Net profit rose 90 percent to $5.9 billion USD. 

During the third quarter, Samsung sold 56.3 million smartphones, giving it a global market share of 31.3 percent. Apple only sold 26.9 million iPhones in the same quarter. The Samsung Galaxy S III alone accounted for 18-20 million shipments from July to September.

While Samsung did well in the smartphone department, particularly with its Galaxy line of devices, it didn't do so hot in chip sales. The chip division dropped 28 percent to $1 billion USD.

Samsung rocked a healthy profit overall this quarter, but many worry that the electronics maker won't see this amount of money rolling in next year as the smartphone market continues to grow competitive.

In fact, Samsung's profit is expected to grow 16 percent next year -- down from this year's predictions of 73 percent.

Samsung has other strong businesses, like tablets and OLED TVs, but analysts say these sectors aren't quite ready to sell the way that Galaxy is selling.

Samsung's tablets, in particular, haven't been able to keep up with the like of the iPad and Kindle Fire. Now, with the iPad Mini and Windows 8 tablets making a fresh appearance into the market (not to mention Google's Nexus 7 and a refreshed Kindle Fire HD line has made its way into the market), Samsung seems to continuously fall behind.

Samsung also took a hard hit with tablets due to its patent war with Apple. Apple worked pretty hard to ban Samsung's smartphones and tablets around the world, and successfully accomplished this in countries like Germany and Australia. Samsung launched a few lawsuits of its own regarding 3G patents, and was also able to lift the ban on its Galaxy Tab 10.1 in Australia in December 2011. However, Samsung wasn't so lucky in Germany, where the Galaxy Tab 10.1 is still banned.

Back in August, a jury in the U.S. District Court for the Northern District of California reached an unfavorable verdict for Samsung, saying that the South Korean electronics maker was guilty of violating technology patents. In other words, most of Samsung's smartphones and tablets in question were found guilt of copying Apple's iPhone and iPad designs. It was ordered to pay $1.05 billion in damages to Apple.

Earlier this week, Samsung Display decided to cut ties with Apple, saying it will no longer ship LCDs to Apple next year. Its LCD shipments to Apple have been cut more and more over time due to Apple wanting huge discounts, but the recent patent infringement drama couldn't have helped either.

More recently, an ITC judge found that Samsung violated four Apple patents, including
the flat front face with wider borders at the top and bottom, the lozenge-shaped speaker about the display screen; the translucent images for applications displayed on the screen, and the device's ability to detect when a headset is plugged in.

Samsung did get a little bit of relief in the UK, though, when a judge ordered Apple to post a notice on its UK site that Samsung didn't copy the iPad. Apple complied, but in a very snarky way.

Source: Samsung

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RE: Impressive
By retrospooty on 10/27/2012 11:12:04 AM , Rating: 1
Its really just starting, as a business plan Android has only been around 3-4 years and it takes time. The 1st goal a good enough OS to gain marketshare. Done...

RE: Impressive
By t_sandman on 10/27/2012 3:56:30 PM , Rating: 2
I just don't see how Samsung can remain competitive with Apple, Google/Motorola, and Windows since the only thing Samsung generates revenue from is hardware sales.

Samsung sold 2x as many phones as Apple and made less profit. (Recognizing that not all profit came from just phones).

Apple and Windows can control the quality of the apps (no malware) where Samsung has no input in the validation process of apps.

If you can't control the user experience, then you don't control your destiny. I believe Samsung will remain profitable, but I don't see Samsung having the same type of current success. At least not from phones.

RE: Impressive
By testerguy on 10/27/2012 6:20:31 PM , Rating: 1
Its really just starting, as a business plan Android has only been around 3-4 years and it takes time. The 1st goal a good enough OS to gain marketshare. Done...

First two results when I followed your link:

Can Google Make Money With Android? - Three Guys and a Podcast

Wait, Google earns four times more from iOS than Android? | Digital ... Google does take a 30 percent cut of every Android app sold, but the market for paid apps under ...

RE: Impressive
By retrospooty on 10/27/2012 6:52:10 PM , Rating: 2
You are having an extra thick headed weekend arent you? I am not quite getting your point.

"Wait, Google earns four times more from iOS than Android? "

Can you name me one business that wouldn't like to make money when its competition makes a sale? Sounds like a great deal to me. I know Googles financial model is a bit to complex for you to follow. Just look at the end results. They just had a 14 billion dollar quarterly revenue.

As far as the rest, as a business model - Android hasnt been around that long. It takes time to cultivate, you lay the foundation then reap the profits. It wasn't that long ago that Apple was losing money hand over fist and if not for a bailout from MS and other investors, they would have gone under completely. Surely you must have heard of the term "investment". It's something businesses do to obtain future profit.

Honestly, you sound just like Tony right now. It's amazingly similar how you both see all the possibilities of Apple's future business, yet when looking at Google, you see right now today only and have blinders on the future and what its all about. Whatever. I keep forgetting you arent here to learn or debate. You are only here to defend Apple, so your kind of a waste of time (and skin)

RE: Impressive
By testerguy on 10/27/12, Rating: 0
RE: Impressive
By testerguy on 10/27/12, Rating: 0
RE: Impressive
By ritualm on 10/28/2012 12:36:40 PM , Rating: 2
And the point of the links is that everyone else, not just me, is questioning Google's capability to generate any kind of meaningful profits off Android.

Google doesn't make money off Android, instead it uses Android as a vehicle to drive its other primary businesses. It's a big distinction that seemed to just fly over your puny Apple-sponsored head.

RE: Impressive
By testerguy on 10/28/2012 6:20:06 PM , Rating: 1
Except those exact 'primary businesses' make more money off iOS users...

So Android isn't gaining them anything.

RE: Impressive
By robinthakur on 10/29/2012 12:57:27 PM , Rating: 2
Not wanting to defend Google, but they make more than enough money. The consumer operations side subsidies the Enterprise area, where they have historically been weaker versus MS. Android ties into their overall Enterprise and home user strategy. You use a Google Chrome book in the office, (wearing your Google Glasses obviously) writing Google docs and storing them on your Google Drive in the cloud, using Google Maps to navigate to your client meeting, then have a teleconference using your Gmail with Google Voice and everybody else is using Android Phones or Nexus tablets to remotely connect, with what you are typing instantly translated in realtime by Google Translate. It gains in their ecosystem's growth and helps to monetize their investment in Cloud computing and all those colossal data centers.

The Android OS offers Google an ability to track you wherever you go, (to help improve their traffic mapping amongst other things) harvest your usage data to sell to marketers, use you to improve their services and to lock you in, should it wish, to its future technologies. They probably even record the voice searches and speech to text you dictate and use this to build up an overall profile on you. They have done this all legally because the disclaimer in their all-in-one terms of usage which you didn't read properly and just approved, allows them to. In the same way Apple want you to use iCloud and Apple maps, free services which pay Apple big-time in the data which they report back. This provides lock in to an ecosystem, and allows you to sell more to a captive market.

If Google really wanted to kill the iPhone it would simply stop iPhone users and Safari browsers from using any Google service and watch people change phones and Macs overnight. That would be an evil move for sure, but who is to say what the cause of the greater good is? I'm not sure the arbiter should be Google, which is after all beholden to its shareholders.

RE: Impressive
By retrospooty on 10/29/2012 1:13:50 PM , Rating: 2
Don't bother... He doesn't understand the concept of investment, or synergy as it relates to a business. Either that or he is just being obstinate as it serves his agenda.

It's not making money right now as observed via the internet so thats a fact. LOL. By that standard, Apple should have closed the doors in the late 90's as they werent making money either. Oh, wait, they invested, developed products and then mad money later with a group of synergistic product lines. Wow, kind of like a business plan.

"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg

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