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
Article title is inaccurate...
4/29/2013 8:24:56 AM
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.
RE: Article title is inaccurate...
4/29/2013 5:29:50 PM
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.
"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
Samsung Galaxy S IV Reviews: Better Than Its Predecessor, But Most Prefer HTC One
April 24, 2013, 10:16 AM
Apple's Q2 Earnings Slightly Exceed Analyst Expectations, Sees First YOY Profit Drop in a Decade
April 23, 2013, 4:41 PM
Samsung to Break Another Profit Record, Creeps Closer to Apple
April 5, 2013, 12:34 PM
Samsung Planning to Release a Smart Watch
March 19, 2013, 10:42 AM
Galaxy S IV Smartphone Launches in NYC
March 14, 2013, 7:15 PM
Apple's "iBeacon" Tracks Customers Inside Apple Stores for Enhanced Shopping Experience
December 6, 2013, 11:26 AM
Apple Says 74% of Its Mobile Devices Now Run iOS 7
December 6, 2013, 10:06 AM
Apple and Samsung See Virtual Tie in Q3 U.S. Sales, Nokia Seizes Fourth
December 5, 2013, 8:00 PM
AT&T Goes After T-Mobile with Reduced Off-Contract Prices, New Base Rates
December 5, 2013, 11:28 AM
MSI Unveils 3K Resolution GT60 Gaming, Workstation Notebooks
December 5, 2013, 11:00 AM
No iPhone for Obama Due to Security Concerns
December 5, 2013, 9:57 AM
Most Popular Articles
NSA Snares Americans' Porn Viewing Histories in Effort to Target Muslims
December 1, 2013, 9:00 PM
Coalition of 20+ Tech Firms Backs MRAM as Potential DRAM, NAND Replacement
November 29, 2013, 11:59 PM
Dow Chemical to NYC City Council: You Don't Even Know What Styrofoam is!
December 2, 2013, 8:30 PM
OCZ Goes Bankrupt, SSD Assets are Targeted by Toshiba
December 1, 2013, 9:58 PM
Man Arrested for Using 5 Cents Worth of Electricity to Charge Nissan Leaf at Middle School
December 4, 2013, 8:00 PM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information