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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: 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.

"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins

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