Samsung Reports $7.4 Billion Profit, Sells 56.3 Million Phones
October 26, 2012 5:04 PM
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Samsung Galaxy S III
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
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
, 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
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
This article is over a month old, voting and posting comments is disabled
10/29/2012 1:04:15 AM
Yeah, anyone who can't tell that they're looking at a pentile display should be thankful for poor eyesight.
Other than that, most Android devices I've seen have very inaccurate color calibration. I'm surprised that this is still a problem, but maybe not calibrating at the factory is a way to cut costs.
As someone that works in imaging, I have all of my desktop monitors and my HDTV plasma color calibrated, and iPhones and iPads are the only ones that I'd call anywhere close to accurate. Anandtech's color tests on the iPhone 5 review confirmed it.
They also confirm what I'd been saying about the S3 color settings for a while, but I guess if oversaturated settings with too much contrast are considered "good", then great. I know there are people out there that run their LCD HDTVs with an awful "sports" preset and that 60fps frame interpolation on, and they think it looks fantastic. It doesn't mean that they're right, but whatever makes them happy.
"It seems as though my state-funded math degree has failed me. Let the lashings commence." -- DailyTech Editor-in-Chief Kristopher Kubicki
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