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  (Source: Cult of Mac)
And that's all without the Galaxy S IV even; Samsung is almost even with Apple in profitability

While reviewers were generally enthusiastic, but a bit critical of Samsung Electronics Comp., Ltd.'s (KSC:005930) hot new flagship phone -- the Galaxy S IV -- the company has little to feel bad about currently.  Even without the GSIV anchoring its Android tag team, Samsung managed to crush rival Apple, Inc. (AAPL) in unit sales and deliver a fiscal performance that blew past analyst estimates.

The high profit was a bit of a surprise -- a survey of 10 analysts by UK-based Financial Times, a Pearson PLC unit (LON:PSON), found an expectation of 8.0T won ($7.2B USD) in profit.  A newer compilation by Bloomberg of 39 analysts' predictions showed an average expectation for 8.4T won ($7.6B USD) in profit.

Instead, Samsung delivered 8.8T won ($7.9B USD) profit, up over 50 percent from the 5.7T won ($5.1B USD) profit it posted in the first calendar quarter of 2012 and 10 percent better than the early analyst estimates.  The Android mobile division drove the big win. 6.51T won ($5.7B USD) of the profit -- nearly three-quarters -- came from the mobile unit.  Total revenue came in at 52.87T won ($47.6B USD).  These figures were in line with Samsung's estimate released near the start of the month.
 
After years of Apple fans and shareholders mocking Samsung as "less profitable", Samsung is almost even with Apple in profitability.  Apple reported its first quarter results at the start of the week, announcing its first YOY decline in profit in a decade.

Apple has seen its momentum halted by the death of its iconic leader Steven P. Jobs (in 2011) and then by disappointment over the iPhone 5 sales growth and hardware. Google meanwhile has surged as Apple's court bid to ban Android stalled [1][2], and as its OEM partners pounced on Apple in terms of hardware offerings.  Stock and profit for Apple are riding at recent lows.  Apple's supporters point to new products and refreshes, optimistically -- but Samsung is boasting the same upcoming events (see: Samsung Smart Watch, for example).

Here's a quick recap on how the two companies are stacking up:

Apple v. Samsung

Samsung appears poised to potentially pass Apple in profit in Q2. And early indications show that if the Galaxy S IV has any problem it will be in being unable to keep up with wild demand.  

The phone is launching in coming weeks on 327 mobile carriers in 155 countries, backed by a massive global advertising campaign that kicked off this week.  In the U.S. Samsung has paired with top brick-and-mortar electronics retailer Best Buy Comp., Inc. (BBY) to set up "mini-stores" promoting the phone within Best Buy's retail locations.

Galaxy S IV
Galaxy S IV preorders are higher than expected [Image Source: Samsung]

According to Reuters, the very high level of preorders have surprised even analysts, and indicate that Samsung may struggle to fulfill demand.  That's a pretty good problem to have, though.

Samsung hopes to sell 390 million smartphones this year.

Source: Samsung



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RE: Apple getting what it deserves
By Nortel on 4/26/2013 2:27:57 PM , Rating: 0
Apple spends over 11 million dollars a day on R&D.

Apple is a huge company, they aren't spending any of their engineering efforts on suing anyone.

I don't know what pedestal you are referring but Apple still owns net profit, 9.5 billion vs 6.4 billion for Samsung.


RE: Apple getting what it deserves
By Rukkian on 4/26/2013 3:06:47 PM , Rating: 6
While Apple does have the lead, I am not sure where you are getting your info, as this is from the article you are posting about:
quote:
Instead, Samsung delivered 8.8T won ($7.9B USD) profit


RE: Apple getting what it deserves
By Lifted on 4/26/2013 6:23:44 PM , Rating: 3
This comment response receives 6?

Really?

Not funny. Not informative. No original thoughts. Just pointing out someones oversight from the article.


RE: Apple getting what it deserves
By Cheesew1z69 on 4/26/13, Rating: -1
RE: Apple getting what it deserves
By Tegeril on 4/27/2013 4:03:05 AM , Rating: 2
Minus the part where Mick got it wrong in the article and he got it right.


RE: Apple getting what it deserves
By Rukkian on 4/29/2013 2:27:13 PM , Rating: 2
quote:
Minus the part where Mick got it wrong in the article and he got it right.


Source?


RE: Apple getting what it deserves
By Lifted on 4/29/2013 8:08:45 PM , Rating: 3
Did you try ready the very first paragraph in the link at the bottom of the article titled "Source".

Yes, I understand the actual source for the article would not seem like the likely place for the correct information since the article was wrong, but that's only if you make the mistake of assuming the author can comprehend a clearly worded financial report.

quote:
SEOUL, Korea – April 26, 2013 – Samsung Electronics Co., Ltd. today announced revenues of 52.87 trillion won on a consolidated basis for the first quarter ended March 31, 2013, a 6-percent decrease from the previous quarter. Consolidated operating profit for the quarter reached 8.78 trillion won , representing a 1-percent decline (QoQ), while consolidated net profit for the same quarter was 7.15 trillion won .


RE: Apple getting what it deserves
By ilt24 on 4/26/2013 10:22:40 PM , Rating: 2
The problem here is the article isn't correct.

It appears that Jason is comparing Samsung's Operating Profit of $7.9B with Apples Net Profit of $9.5B.

Net Profit Samsung $6.5B vs. Apple $9.5B
Operating profit Samsung $7.9B vs. Apple $12.6B


By karlostomy on 4/27/2013 2:28:40 AM , Rating: 2
Thank you for the clarification.

It shows that the gap isn't quite as narrow as was made out to be. So I welcome the factual clarification.

Still, Samsung achieved this on the on the eve of the launch of the Galaxy S4.
I expect Samsung's net profits will continue to rise on the strength of sales of the S4.
Not sure I can say the same for Apple.

But yeah, that's just my opinion, given Apple's recently declining profit margins.


RE: Apple getting what it deserves
By Tegeril on 4/27/2013 3:59:19 AM , Rating: 2
Whoa whoa whoa, you expect DailyTech to accurately report on issues involving Apple and Samsung?


RE: Apple getting what it deserves
By Lifted on 4/28/2013 3:15:00 AM , Rating: 2
shocker


RE: Apple getting what it deserves
By BRB29 on 4/29/2013 12:04:56 PM , Rating: 2
how do you even get a 6?


RE: Apple getting what it deserves
By Reclaimer77 on 4/26/2013 7:30:41 PM , Rating: 1
quote:
Apple spends over 11 million dollars a day on R&D.


That's a blatant lie dude. Sorry.


RE: Apple getting what it deserves
By Cheesew1z69 on 4/26/2013 8:24:51 PM , Rating: 2
As much as I can't stand him and his trollish ways, it appears to be true.

http://www.zdnet.com/apple-spending-over-11-6-mill...


By Reclaimer77 on 4/26/2013 10:30:42 PM , Rating: 5
Apple has always been a poor historic R&D spender. They weren't even in the top 20 in 2012. Despite the insane profits, they refuse to invest in their future.

http://www.thephoenixprinciple.com/.a/6a00d8341c27...

So, okay, apparently Apple just now this quarter decided to kick it up a notch.

*golfclap*

By the way, it's presented as a big number. Wow, you think, $11 a day! That's a little over $4 billion a year. Which wouldn't have even placed them on that top 20 chart for last year.

Compared to their profits, Apple's R&D budget is charity.


RE: Apple getting what it deserves
By nikon133 on 4/28/2013 6:25:05 PM , Rating: 2
It is nice to see MS is spending $27 mil a day, according to the same article.

Now that is what I call "a company bent on innovation".


RE: Apple getting what it deserves
By BRB29 on 4/29/2013 12:01:41 PM , Rating: 2
spending more does not equate to more productivity. Efficiency is what keeps you in the black. Look at apple's profit margins. That's very high for a company that size. Normally, you only see that kind of margins in a monopoly that is dominating the market. For example intel and microsoft.

$11mil a day in R&D is less than the interest they can get for their massive amount of cash.

You don't have to like Apple to acknowledge the fact that they are a very efficiently managed company. Much like Walmart and its success.


By euclidean on 5/1/2013 11:26:32 AM , Rating: 2
You would be surprised in all that M$ does in the R&D space...some really interesting designs...

http://www.pcworld.com/article/2020268/meet-micros...


RE: Apple getting what it deserves
By jimbojimbo on 4/26/2013 8:17:23 PM , Rating: 1
quote:
Apple spends over 11 million dollars a day on R&D
If this was at all true then after all that the best they could come up with is another line of static icons... just 4 icons at that.
Do you really believe in a company that can spend 4billion a year in R&D and just add another row of icons?


RE: Apple getting what it deserves
By Tegeril on 4/27/2013 4:00:23 AM , Rating: 2
"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein














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