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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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Profiting off of fragile phones
By Lord 666 on 4/26/2013 6:31:51 PM , Rating: 0
Of the 12 or so people who I know who have SG3s, only two of them haven't had cracked screens. I'm not talking bunch of teenagers, but executives over the age of 40. One person has done it four times already.

So in other words, question how much of these sales/profit is from conquest and how much of it from same device replacement.

RE: Profiting off of fragile phones
By V-Money on 4/26/2013 7:26:06 PM , Rating: 2
I know, they should have went with Apple, I don't know anyone with an iPhone/iPod with a cracked screen 8-/

RE: Profiting off of fragile phones
By StevoLincolnite on 4/27/2013 4:04:00 AM , Rating: 3
Funny. I've repaired dozens of iPhone/iPod cracked screens.

Don't pretend they're immune to such issues.

RE: Profiting off of fragile phones
By BZDTemp on 4/28/2013 12:58:20 PM , Rating: 2
I think you replied to the wrong post ;-)

RE: Profiting off of fragile phones
By Cheesew1z69 on 4/26/2013 7:26:43 PM , Rating: 2
Perhaps they should quit being so rough on the phones. They aren't that fragile.

RE: Profiting off of fragile phones
By Lord 666 on 4/26/2013 8:25:38 PM , Rating: 2
Of the 40 or so RAZR M and RAZR HD devices within my company, none have had a broken screen yet or died.

By Cheesew1z69 on 4/26/2013 8:34:47 PM , Rating: 2
And? Many people have GS3 that have dropped them with 0 issues. I have dropped mine several times with minor scratching. Again, they need to quit manhandling the phones. And 4 times? Seriously? I find it highly suspect that ONE person has had his screen cracked FOUR times in a row.

My Razr that was given to my wife, the screen broke when my 8 month old grabbed it and threw it on the floor.

Not quite sure what your point is?

By Reclaimer77 on 4/28/2013 1:35:14 AM , Rating: 2
Of the 40 or so RAZR M and RAZR HD devices within my company, none have had a broken screen yet or died.

Hey physics dropout, compare the weight of a Razr to that of the GS3. Notice something?

Anyway enough of this stupid sophomoric argument. I don't care how many phones broke in your made up example. The GS3 in real life doesn't have anything close to the 90%+ brick-on-drop rate you're claiming.

RE: Profiting off of fragile phones
By Yongsta on 4/26/2013 9:49:02 PM , Rating: 2
That's the thing with Anecdotal evidence. I know plenty of people with SG3s and no cracked screens yet so many cracked screens on people who have iphone 4s & motorola droids.

RE: Profiting off of fragile phones
By Lord 666 on 4/26/13, Rating: -1
RE: Profiting off of fragile phones
By SlyNine on 4/26/2013 11:57:55 PM , Rating: 4
What he clearly meant was your sample is pathetic and you cannot infer any reasonable data from that limited sample.

If these other sources you mention have data supporting your hypothesis, then you should have cited them instead. As it stands you are committing the fallacy; begging the question, by implying that perhaps Samsung isn't as hardy as the IP4 and that Samsung is only beating apple because of their inferior product (again IMPLYING).

RE: Profiting off of fragile phones
By Solandri on 4/27/2013 12:20:16 AM , Rating: 2
Where is the anecdotal evidence?

I've put it in bold for you.
Of the 12 or so people who I know who have SG3s

As the saying goes, the plural of anecdote is not data. A proper sample would control for factors like how roughly or carefully people handle their phones (also whether it's a personal or company-provided phone), how many hours/day the phones are used (and thus vulnerable to being dropped), height of the person, the environment they're most often used in (carpeted floor or outdoors on concrete), etc. And even after you control for those, the angle the phone hits the ground will make a huge difference too.

I haven't seen any studies which attempt to systematically answer the question of phone durability. It'd probably be too expensive because you'd have to destroy so many phones. The manufacturers probably do get breakage statistics from their retailers, but even that is to some extent a self-selected sample. Occasionally I do see different devices treated the exact same way, making it worthy of mentioning, but still not what I'd call reliable data.

For me personally, it's an academic point. Over the last 15 years I've dropped each phone I've owned about a dozen times. The only screen I've managed to smash was one which fell out of my pocket as I was closing the car door and got crushed between the door and frame (the plastic-body phone bounced back to shape and still worked btw; I suspect a metal one would've deformed and lost battery contact). So if one does finally break from a drop, I'm more inclined to chalk it up to plain bad luck (i.e. it happened to hit the ground just right to break it) before I'll attribute it to a design defect.

RE: Profiting off of fragile phones
By BRB29 on 4/29/2013 8:37:02 AM , Rating: 1
A sample set of 12 is not statistically effective. Your chart wouldn't make any sense. I can't wait to see how wide your predictions are with a 95 or 99% confidence.

Also, I don't know of too many companies handing out GS3s for corporate use. It's not a good corporate phone. I've seen more iphones and motorolas than anything else.

IDK who made the decision for using GS3s but it is more of a consumer phone and it's excellent at that.

RE: Profiting off of fragile phones
By retrospooty on 4/27/2013 8:39:23 AM , Rating: 4
" one person has gone through four SG3s; three with smashed screens and one lost"

Ummm... Ya, that isnt a user issue, must be a bad phone LOL. The GS3 isnt the most sturdy phone ever built, but its doesnt break when dropped. Not to a problematic point. WTF do these 12 people do for work? Are they some sort of field service that uses the phone outdoors and in rugged environments? If so, they should be getting rugged phones. If someone broke 3 phones in less than 1 year you really need to give that person a feature phone because hey arent responsible enough to own a smartphone.

RE: Profiting off of fragile phones
By messele on 4/27/13, Rating: 0
By retrospooty on 4/28/2013 9:36:29 AM , Rating: 2
??? I guess you troll'd me.

Sorry, starve bitch.

RE: Profiting off of fragile phones
By Reclaimer77 on 4/27/2013 11:28:45 AM , Rating: 2
Am I the only one that's missing the part about him knowing 12 or so people who all own GS3's?

Yeah clearly the phone must suck when almost everyone you know bought one...

Lord 666 is a chronic liar, however. Even if he wasn't, his claims require a complete suspension of disbelief.

Hey guys I know 12 people with iPhones, all of them had their batteries explode. One person has done it four times already and caused his house to burn down. True story!!! *wink*

RE: Profiting off of fragile phones
By Lord 666 on 4/27/2013 5:30:08 PM , Rating: 2
Liar? The 12 people with SG3s are all corporate issued by myself. Did all of them break; nope. Learn how to read.

What part am I missing that you have "this suspension of disbelief?"

At no point did I say the SG3 suck. The phone has its place and increased Android market share. My only question was of Samsung's sales, how much of it is from conquests and same-phone replacements?

Where did I even bring up iPhones?

RE: Profiting off of fragile phones
By cyberguyz on 4/28/2013 7:22:20 AM , Rating: 3
Dude, sometimes when a smartphone falls and hits a hard surface, it breaks. I don't care who makes it. That will hold true for any smartphone - not just the SG3. They are ALL fragile of mishandled.

Now that Samsung has people who broke their phones coming back to them for another of the same phone tells me that Samsung is doing something right. After all there is no real reason why most of those people can't go out and buy something else line an HTC One or iPhone to replace it, right? They are going out and buying another Galaxy.

You call it profiting off of fragility. I call it Samsung making their customers so happy they keep coming back. That to me sounds like good business.

RE: Profiting off of fragile phones
By retrospooty on 4/28/2013 3:05:09 PM , Rating: 2
Exactly... There have been 50 million GS3's sold. If it were epidemic, the internet would be on fore complaining about it. All phones break when dropped in certain ways at certain percentages... The GS3 isnt on the top of that list, but isnt on the bottom either.

RE: Profiting off of fragile phones
By rob19478 on 4/29/2013 6:11:21 AM , Rating: 2
Only smartphone I had so far is the Nokia 710 which falled twice but is still as new. All of my friends and colleagues have smart phones, most of them are cheap android phones mostly samsung/htc none ever had a broken screens. The couple friends I have with an Iphone had no broken screen either. Actually I know no one with a broken screen, even the users with sg3. Thus i really think that OP of this thread is just a fat liar and invented the whole anecdote to troll.

By retrospooty on 4/29/2013 8:19:33 AM , Rating: 2
LOL... Well, I am not going to say he is lying, but his sample size is rediculous... Well, I know 8 people with GS3's and zero have broken so therefore it is the most stursy phone ever built?

Snd if any One person broke 3 phones and lost another in less than 1 year (The GS3 came out last May) they have a problem. FFS 3 phones broken in a year? He mentioned getting things done before "Hurricane season" above so I am thinking these people are in some type of job that may be a better fit for a ruggedized phone with a smaller screen. Less surface area will always be less brittle... Science man!

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