samsung Samsung posts record profits as Galaxy sales crush Apple

[+Frank B. Subscriber²]

Samsung posts record profits as Galaxy sales crush Apple

Mobile biz powers 91% boost to Q3 bottom line

Booming mobile sales have powered record profits at Samsung in Q3. Samsung published a preliminary statement of their financials yesterday [PDF] which shows a 91 per cent increase in net profit compared to the same three months last year.

The South Korean firm drew in 6.56 trillion won profit ($5.9bn or ?3.7bn) in the three months to the end of October, compared to 3.44 trillion won ($3.1bn or ?1.9bn) for the same period in 2011.

And with general consumer electronics sales flat at 2 per cent growth, and LCD and memory sales down, it was mobile - and to an extent display panels - that were surging and pulled the whole company with them.

It comes just after news that Samsung's handsets had outsold Apple's by two to one.

Samsung clocked a stunning 82 per cent year on year increase in sales in the highly competitive mobile market. Sales were up 28 per cent sequentially from Q2. The 26.25 trillion won ($23.9 billion, ?14.8 billion) brought in by the mobile sector was 50 per cent of Samsung's total 52.18 trillion won ($47.6bn, ?29.5bn) revenues for the quarter.

Samsung execs noted the global expansion of the Samsung Galaxy SII as the key Samsung strength in the mobile market and reinforced line-ups at the mid/low levels.

Weak demand for PCs, air-conditioning units and TVs in the developed world put a lag on other areas of the business.

Samsung's profit margin for the quarter sits at 12.6 per cent - less than Apple's 25 per cent - but still very healthy. And of course, it also outshone Apple year-on-year Q3 profit increase of 21 per cent, which was below market-watchers' estimates.

The Sammie execs predicted that Q4 Christmas season would fuel a rise in sales of TVs, tablets and phones, though did warn that competition in the smartphone market was intensifying. ?

Samsung's Q3 2012 preliminary results [PDF]

Source: The Register

[HoochieMamma]

Fantastic news (Y)

I just hope that all manufacturers could make "nexus" devices where they HAVE to run stock JB and only have updates through Google :D

[Subhadip]

Only Apple could even dream of challenging with a single, solitary flagship product. That too with a screen size you would expect on an mid-range phone (in fact, entry-level, considering we are talking about Q3 with 4S). It is a remarkable achievement of marketing in that sense. Also, despite being outsold two-to-one, it still makes as much money as Samsung.

[Muhammad Farrukh]

I don't see how that crushes Apple :s

iPhone is still selling strongly. Its just that overall smartphone market is growing.

[Mathiasdm]

Also, despite being outsold two-to-one, it still makes as much money as Samsung.

Which is great for Apple, but doesn't sound so good for its customers...

[javagreen]

Also, despite being outsold two-to-one, it still makes as much money as Samsung.

Not hard really, when you're selling your product with a huge markup.

They were selling the 3GS, 4, 4S and started with the 5 - each and every single one with a large-ish markup. For the price they were selling the 3GS for, one could just add a little more and buy a Galaxy S2 instead.

That's how high their markup (is) was.

[The Evil Overlord]

...Yes but Apple could outsell Samsung, honest, honest, honest, truly, honest, they really could, they're better in every way, honest and truly they are, Samsung just got lucky, that's all, we're ok, we really are, we'll be fine, honest...........

[srbeen]

Apple-assisted sales campaign worked!

...Yes but Apple could outsell Samsung, honest, honest, honest, truly, honest, they really could, they're better in every way, honest and truly they are, Samsung just got lucky, that's all, we're ok, we really are, we'll be fine, honest...........

except for the overpriced walled-garden way, expandable memory, large screen & fast network way. LTE is over a year old, its almost fully deployed and Apple got 1 LTE phone out... yawn.

Samsung developed a competing product that exceeded the walled-garden approach & got it to market sooner. Apple DID outsell samsung, but not anymore. Apple stopped innovating & the proof is in the numbers. consider their $350 7" tablet 'tax' when most competitors are UNDER $200. hell, playbooks are $150 taxes in around here now! They could outsell if they removed their 'tax' from their goods and actually competed at a cost and feature level. Their profit margin for selling half the amount of goods is equal though so why would they care?

The only people sticking with apple are those with an account at the AppStore with $$$$ sank into it. iOS is boring in its 6th unchanged interface year.. Everyone else is seeing the light now. even iPads sale expectations are down almost 20%. must be why the 7" is so expensive.

[benthebear]

except for the overpriced walled-garden way, expandable memory, large screen & fast network way. LTE is over a year old, its almost fully deployed and Apple got 1 LTE phone out... yawn.

Yawn indeed.

Samsung developed a competing product that exceeded the walled-garden approach & got it to market sooner. Apple DID outsell samsung, but not anymore.

There was one month (August 2012) that the sales of the S3 exceeded the 4s. One month. The 2 to 1 number the article references are comparing Samsung's shipment to retailers number to Apple's sold to consumers number.

Apple stopped innovating & the proof is in the numbers. consider their $350 7" tablet 'tax' when most competitors are UNDER $200. hell, playbooks are $150 taxes in around here now!

Correction. Their $350 7.9" tablet. Playbooks maybe $150, but they're not exactly flying off of the shelves. 1.74 million Playbooks shipped since it's launch in April 2011 through September 2012. Apple sold 14 million iPads last quarter. Apple keeps selling more of their iCrap compared to the same quarter the year before, so what numbers are you looking at for your, "proof" ?

Also, I remember that people complained about the price of the iPod mini when it was first introduced at $50 less than an iPod. It went on to be the best selling device at the time. So, we'll see about this iPad mini thing. Damn iSheep, right?

The only people sticking with apple are those with an account at the AppStore with $$$$ sank into it.

If that were true, how come the smart phone market is growing, and Apple, along with others, are growing with it?

iOS is boring in its 6th unchanged interface year.. Everyone else is seeing the light now. even iPads sale expectations are down almost 20%. must be why the 7" is so expensive.

6th unchanged interface year? So everything that's in iOS 6 now was there, and looks exactly the same as it did in 2007? If your answer is yes, then you just proved that you haven't really used iOS, and that you sound just like this Trollem Ipsum.

[Growled Member]

Samsung is one of the few companies that actually can challenge Apple, and win.

[srbeen]

Yawn indeed.

Im just saying what has apple brought to light since the iPad & iOS3/4? nothing. They stole every major new feature from ios5 up from the competitors. Be it the bbm-imessage, or the android-notification, or the multiple top-selling cydia apps they 'freely' incorporated into their iOS. Its not identical as their 2007 launch, c'mon give me a bit of credit here. For the grandpa who looks at the sale ads a photo of iOS6 on an iPhone 5 and a photo of launch IOS on a 2G? Theres one more line of icons in the difference. Unless they used a 2G device they are ignorant to any changes in the interface as the ads dont show software - only hardware... Apple also only did subtle changes, nothing revolutionary or wow factor. theres an icon grid which they copyrighted, theres a launch bar which they copyrighted, theres a rectangle shape with rounded corners they copyrighted... Its like driving a 2003 corolla and a 2013 corolla. 10 years newer but the EXACT same feel. Obviously this is working for them though just like it is with Toyota.

The sheep metaphor is best described in iOS6.. Apple took a perfectly functional mapping app and replaced it with their alpha software for their best iphone release yet, because why? they are ###### and can.. Google didn't say 'don't use our maps' - apple did to the dismay of millions of their adopters.

This is the choice thing I was saying with the walled garden.. Blackberry are also part of this garden too. It left a bad taste in my mouth with iOS just like "youtubes does HD" when Jobs was questioned on mac's stance on HD/bluray, or when Apple decided to brick people who 'pirated' software on the 'mac'-hines. Hell, thinking back to the iPad release - I thought, 'screw that, this is the dumbest idea anyone could ever have. this is going to fall flat on apples face. They are too brazin with their iPhone success' - now like 2/3 years later I just UPGRADED my iPad to a 3. Simple reason, Apple has the apps. My android based tablet can't stream TV, as it don't have a CTV app, or a cityTV app, or a vevo app, or any of the other super glossed well oiled code. Thats the sole reason. I owned a 3G and a 3GS and refuse to go back to the iOS for a phone again. Not one thing is wrong with it (aside from my yawn factors) but I just can't stand the monotonousness of it. Having said that, nokia & blackberry are in the same boat. I require android. Its stubborn, I waste a lot of my life screwing with it, but I love that about it. I can screw with it... With iOS it just works. Nevermind the countless reports that iOS is 'spying' on you which I don't like.

The numbers are the profit to sales ratio, the PROOF of the gouging iSheep eat up. Compared to the nexus 7 which is the best-selling competition, apple 'copied' the smaller tablet design at a seemingly outrageous price. As google drops theirs $30-50 apple releases one thats $130 more costly with fewer features. Example is I seen full iPad3's with a better processor (A5 vs A5x), 2x the resolution and the same amount of storage for $349 on their webstore. I think apple serverly missed the mark on their 7.9" tablet, and a 'refresh' will be coming in less than 6 months, just like the iPad 3, which ****es off the consumer.. Needless to say Im sure the sales numbers will far exceed that of all blackberry and android tablets combined before 2013.

I just keep seeing factors surfacing with Apples method that anger me, and the iSheep are baa'ing all the way to the stable with their crispest $100 bills.

[Astra.Xtreme]

There comparisons are always really stupid. How many phones does Samsung offer? 100? So comparing sales of 100 phones to the sales of 3 phones? Yeah, that makes sense.

Let's compare the sales of the GS3 to the 5. ;)

[Boz]

I don't see how that crushes Apple :s

iPhone is still selling strongly. Its just that overall smartphone market is growing.

Samsung outselling Apple by 2:1 is called crushing in my book.

Let's compare the sales of the GS3 to the 5. ;)

Yes.. that's where they also outsell them.. Galaxy phone outsells iPhone by itself.. when you count in other models they outsell Apple 2:1. And btw, Apple still sells Iphone 3GS, iPhone 4, iPhone 4S and now iPhone 5.

[srbeen]

Samsung is one of the few companies that actually can challenge Apple, and win.

They lost hard in California verdict, to the tune of 1-3 billion. They won in other countries, but all-in-all, everyone steals from everyone in this business. This is how electronics are innovated... Apple stifling the competition can only hurt them in the long run. After they ****ed the cydia devs they slowed down development. Competition is the only place they can get reliable market-backed ideas...

[srbeen]

Samsung outselling Apple by 2:1 is called crushing in my book.

Yes.. that's where they also outsell them.. Galaxy phone outsells iPhone by itself.. when you count in other models they outsell Apple 2:1. And btw, Apple still sells Iphone 3GS, iPhone 4, iPhone 4S and now iPhone 5.

Apple made an excellent sales campaign with the lawsuites.

The SGS3 is better than the iPhone in all these ways, but they are using our patented square phone with rounded corners and icon-grid design!

Got a billion dollars in some half-assed biased verdict, but SGS3 sales increased more and more since then.. Im still unsure if this is good or bad for Apple. I guess if everyone gets android and are ****ed off trying to figure it out, thats perfect.. but if people get android and think "screw iOS" then they are biting their own hand. file management and MKV playback are awesome, as well as swype.

[.Neo]

Samsung outselling Apple by 2:1 is called crushing in my book.

We all know that book of yours is stored well within your own Reality Distortion Field. If you're going to make a comparison do so properly. In this case they're comparing two very different things:

[...] The 2 to 1 number the article references are comparing Samsung's shipment to retailers number to Apple's sold to consumers number.

[Growled Member]

The 2 to 1 number the article references are comparing Samsung's shipment to retailers number to Apple's sold to consumers number

Apparently they are comparing apples to oranges. I've always want to say that.

[Muhammad Farrukh]

Samsung outselling Apple by 2:1 is called crushing in my book.

You have a couple dozen phones against what? Two?

Yeah, that ain't crushing in any sense

[Astra.Xtreme]

Yes.. that's where they also outsell them.. Galaxy phone outsells iPhone by itself.. when you count in other models they outsell Apple 2:1. And btw, Apple still sells Iphone 3GS, iPhone 4, iPhone 4S and now iPhone 5.

Care to provide proof of those claims? We all know you're lying your ass off...

And Apple doesn't still sell the 3GS. You can get it from places like Amazon and maybe Best Buy, but Apple themselves and all carriers don't offer it. There's no reason to buy that old ass phone when the 4 is free with contract.

[Shadrack]

Its funny how Android users still act like their platform is the underdog and iPhone represents a product that people only buy to be popular and cool. Clearly Android is more popular and has been for awhile now. Please stop acting like cry baby victims now, ok?