Samsung Beats Analyst Profit Expectations by 10%, Outsells Apple 2-to-1
April 26, 2013 12:20 PM
comment(s) - last by
(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 (
) 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
to crush rival Apple, Inc. (
) in unit sales and deliver a fiscal performance that blew past analyst estimates.
The high profit was a bit of a surprise --
of 10 analysts by UK-based
, a Pearson PLC unit (
), found an expectation of 8.0T won ($7.2B USD) in profit. A newer compilation
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
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 [
], 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:
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. (
) to set up "mini-stores" promoting the phone within Best Buy's retail locations.
Galaxy S IV preorders are higher than expected [Image Source: Samsung]
, 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 article is over a month old, voting and posting comments is disabled
RE: Run, Suzy! It's a giant phone!
4/26/2013 6:09:28 PM
I would be too if giant 6 foot tall phones were after me.
"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings
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