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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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Article title is inaccurate...
By TEAMSWITCHER on 4/29/2013 8:24:56 AM , Rating: 1
Samsung didn't outsell Apple...they out-shipped them. This would explain the lower profits despite higher revenues. And the iHaters are so eager to pounce on bad Apple news they will jump at this contrived data. Until Samsung reports ACTUAL smart phone numbers sold, this is merely an accounting trick, and not a sign that Apple's market strength is fading. Think about it, Apple just had a great quarter, and Mac Sales were down. The iPhone and iPad made up the difference. Yes, profits were down, but they are spending billions on new facilities, products in development, and semi-conductors to replace Samsung. Don't read too much into this, Apple still has the lead and for them...it's only half-time.




By TakinYourPoints on 4/29/2013 5:29:50 PM , Rating: 3
Reporting shipped vs sold is one reason, the other is that Samsung mostly ships low end devices. Flagship phones make up only about a quarter of Samsung's sales, while most of what Apple sells are high end. If Samsung sold a similar percentage of high end devices as Apple then you'd see much closer overall profit margins. There is only so much to be made on cheap/giveaway low end devices.

Samsung does ship more high end Android phones by a very wide margin though. HTC/LG/Moto aren't even close.


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