Samsung 'crushes' Apple with its earnings report

Apple reported its financial earnings almost a week ago and even though it beat some predictions and brought in billions of dollars in net profit there are still signs that the company is somewhat struggling. And this becomes even more evident now that Samsung's financial report is out.

Samsung's financials show that the company's profit soared by 42% in this quarter compared to the same time last year and that amounts to about $6.5 billion. Apple on the other hand reported its first profit decline in almost a decade.

Samsung also did well in terms of volume sales with research firms estimating that the Korean company sold around 70 million smartphone devices, almost double when compared to Apple's 37 million iPhones.  Hyun Joon Kim, Samsung's vice president of mobile planning said:

Our business earnings grew from the previous quarter driven by an increase in smartphone sales and decreased marketing expenses

The company has done well on account of its Galaxy S III and Note II devices that have sold in record numbers. And now that Samsung has launched its brand new S4 flagship they're expected to remain a very fierce adversary for a struggling Apple.

Via: Wired Source: Samsung | Image via Neowin/Tim Schiesser

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Android activations are hovering around 1.5m per day. Eric Schmidt says 1bn activations by the end of 2013! Wasn't it also Microsoft that started getting sued for their massive success 15 years ago? ;-)

Is that (revenue / profit) number just at Samsungs smart phone division? because Samsung is a MASSIVE company compared to the nitch market company Apple is (Computing devices only).. Samsung makes everything from watches to guided missiles and everything in-between and all the components too..

6.5B is a lot of money and the Galaxy S 4 isn't even included in this number. Wait til those bad boys start shipping.

If you look at Apple's numbers, they show they have sustained sales for 2 quarters...there first which falls during the busiest shopping holiday of the season and the second. After that sales fall considerably due to people waiting for the announcement of a newer product revision.

Unlike Samsung who releases a new product several times in the year, keeping sales at a fairly average pace that doesn't drop as much. By the time the Galaxy S 4 sales start to drop, the Galaxy Note will come and pick them right back up. Can't say that for Apple.

More difference....iPhone 5 launched and was available in 50 countries as of December hoping with the final numbers hitting 100 counties and 240 carriers...this vs the Galaxy S 4 which released to 60 countries and will end up over 150 countries and 300 carriers.

All of that distribution costs money. Making all that hardware cost money. Apple pays others to make hardware and assemble it which is cheaper than doing it yourself. This is why Microsoft always stayed away from making PC's. The overhead required is very costly and you reap lesser benefits.

The fact is all this hard work is paying off because Apple is dropping in profits while Samsung is going up. The more Samsung products are available, the more space Apple has to fight for. Right now the numbers show that for every 1 iPhone sold, 3 are sold by Samsung. And all 3 are different models hitting the millions...not just one.

Again the more you make, the more cost and more money you spend in this case Samsung spends a lot of money. Apple doesn't spend much at all.

So people read the number and don't consider the following...

Apple 9.7B and dropping...Samsung 6.5B and growing.

Now lets compare. Samsung has devices available in more markets. That means more distribution...which in turns adds more cost. Apple can enjoy higher profits because they don't make a darn thing. They aren't spending much money. They sign a dela to have product made at the lowest possible price. They sell a phone that cost $200 to make at up to 4 times the cost. The 64Gb iPhone cost 899.99 retail and 850 from Apple. What are you paying for over the 16GB or 32GB model? Other than storage they are 100% identical. 64GB of nand is about $50 retail...so apple pays far less. That plus they charge $100 for the 32GB model vs the 16GB model. That's more free money. Next, carriers must pay for their order upfront. If ATT orders 20M phones, they have to pay before they even get shipped.

Samsung spends money on manufacturing...Foxconn doesn't make the phones, they assemble them. Assembly is cheap, manufacturing is not. Apple pays cheap labor to assemble the iPhone. Samsung spends money to make the chips, ship the chips to the foxconn along with the other electronics and then has too pay to have them ship to twice as many countries than where iPhone is avail. Apple right there save at least $3B in costs because they don't make squat.

This is what the fanboys of Apple don't take into consideration. It cost Samsung more money to make 10 or 20 different phones. They don't make 100's of different model of smartphones.

This an the fact they sell more devices in developing countries where they ship lower costing phones. In a case where carriers likely pay as they sell, not pay on pre-orders like the US does. But I am only speculating here.

Samsung unlike APple doesn't just depend on the mobile market. This $6.5B is just money they made from this once segment of their company. Samsung is 10x's the size of Apple. Makes far more products, ships far more products and spends far more money.

You trying to compare Samsung a company that makes the world largest cargo ship to Apple who has never made a product in their entire life. Apple designs hardware...they don't make it. Design is cheap. You pay a guy a lousy salary to draw picture and maybe build a prototype.

That's the problem with fanbois, so superficial...just like bashing plastic vs alloys. Phone materials aren't a spec. Forgetting your favorite also makes plastic devices is sad. Fact, a block of solid aluminum is about $1.00 more than poly-carbonate which is less likely to get damage.

I have a bet for anyone...drop you iPhone 5 down an escalator at O'Hare where I can meet you and I will drop my Galaxy Note 2. Whoever's device sustains the least amount of damage, is to be bought a new device of his/her choice. Either put your money where your mouth is...or be quit.

Also Apple can rake in cash because they get money from the app sales as well. They also get money from licensing the connector port that companies that make docks have to pay. Samsung use a standard port that has no royalties attached. They also don't sell very many if any applications.

Samsung makes all their money solely on the hardware and they are using an OS that is also being sold by others and actually have to compete, unlike Apple who has no other competition using iOS, so thus they reap more of the profits. Good thing none of these fanbois run a business. They would be just like RIM and Microsoftwas. We own the market so we don't need to do anything except watch the money fall in out laps. They found out the hard way the money tree does lose it leaves if not properly taken care of. I thought Apple learn from the Mac mistakes...guess not!

Edited by Hi_XPecTa_Chens, May 1 2013, 5:30pm :

This article is such BS!

"Samsung also did well in terms of volume sales with research firms estimating that the Korean company sold around 70 million smartphone devices" <- Key words: research firms! They didn't release any actual sales numbers. Also, how many other genre's of products does Scamsung sell? These financials do not break down the sales of just smartphones, but rather the company's global income as a whole. What does that tell me? They actually didn't do anywhere NEAR as good as Apple.

BTW, with such a multitude of products only pulling in $6.5b, compared to Apple's $9.7b with only a fraction of the product lineup actually tells me Apple is CRUSHING Scamsung.

-=MagMan=- said,
This article is such BS!

"Samsung also did well in terms of volume sales with research firms estimating that the Korean company sold around 70 million smartphone devices" <- Key words: research firms! They didn't release any actual sales numbers. Also, how many other genre's of products does Scamsung sell? These financials do not break down the sales of just smartphones, but rather the company's global income as a whole. What does that tell me? They actually didn't do anywhere NEAR as good as Apple.

BTW, with such a multitude of products only pulling in $6.5b, compared to Apple's $9.7b with only a fraction of the product lineup actually tells me Apple is CRUSHING Scamsung.

This is not their global income. This specifically is for Samsung Electronics. You obviously can't comprehend what you read.

And if you are shipping 70M products of anything...they are selling as those shipments means these items were ordered to be sold. They aren't sitting collecting dust. At least not in this market. Samsung sold 90M devices as of Q3 2012...45M were smartphones. if it leaves Samsung it is sold...no matter what happens...just like with Apple.

If ATT orders 20M iPhones and they must pay up front, they are counted as sold. If ATT cant sell them all to customers, its ATT who takes the lose...not Apple.

Sprint got stuck with a whole bunch which is why they moved so many over to Virgin mobile hoping to sell them.

So Samsung, which is in far more markets than Apple and has far more smartphone lines than Apple, managed to achieve a net profit of $6.5 billion compared to Apple's $9.5 billion, yet the former is spanking the latter because they sold around twice as many smartphones? Riiiiight...

Manish said,
So Samsung, which is in far more markets than Apple and has far more smartphone lines than Apple, managed to achieve a net profit of $6.5 billion compared to Apple's $9.5 billion, yet the former is spanking the latter because they sold around twice as many smartphones? Riiiiight...

Yes because to ship 70M phones to more counties, means you have to spend more money.

TechieXP said,

Yes because to ship 70M phones to more counties, means you have to spend more money.


I'm sure it would take $3 billion to do that.

Manish said,

I'm sure it would take $3 billion to do that.

Well lets see if we can come up with a reasonable point.
Between May of last year and this year, how many phone models have Samsung made, including those that didn't come to the USA?

Also you have ot consider the many variants of a single model. The GS3 had 4 US variants alone, then there is the International models too.

Then you have to consider Samsung is making componenents 24/7 and people have to get paid. Samsung has 220k employees, but how mnay work just in electronics, I don't know. Samsung has to ship product to, 300+ carriers and 150+ countries. The iPhone 5 as of december, was only in 100 ciuntries on 240 carriers.

Then you have to factor in costs Samsung has that Apple doesn't. Samsung makes the hardware for its phones, Apple doesn;t make crap. They draw a design on paper ans pay someone to do it, which is factually cheaper than doing it yourself.

Then Samsung has to pay to ship that stuff to all these places, which Apple doesn;t. Apple pays Foxconn a set price that includes everything and if Foxconn ends up with more cost vs what they contracted, that's their own fault.

All this cost could easily be $3B in cash. If Samsung could work like APple, they means they would spend far less money. Whether its 3B or not isntthe point. The fact is, Samsung spends way mor emoney becaus ethey ahve far more overhead vs APple.

I love it. billions of dollars of PROFIT and it struggling.

I bet BlackBerry and Nokia wish that could have that problem.

if you look past the money, you will see the trend. Its the trend that is going downhill according the article.

The only Samsung I have bought, and will buy, is the Galaxy Nexus...unless they release another Nexus device. Other than that, I am not to impressed with their gimmicks.

Careful guys neowin is very quick to BAN anyone that make a few posts that are negative towards Microsoft friend of mine showed me proof as long as its apple hate you are safe just do not post anything negative about Microsoft

apple made 50% more profit than samsung so how does that equate into crushing apple. i dont like apple but just cus samsung sold twice as many devices doesnt mean theyve beaten them. just theyll have sold alot more low end devices seeing as apple doesnt have any in the mobile space at least.

Pointless article

I suppose it's how you read the title. I understood it as shipping more phones but not necessarily making more money.

Like I say, it's how you read into it

wow...what an incredible anti-apple biased article. Apple $9.5 billion profit versus Samsung's $6.5 and people don't look at that 'nearly twice as many smart phones' as apple statement and think...yea they're not mostly Samsung's lower end offerings.

Struggling Apple...give me a break!

They are talking about the profits. Re-read, "Apple on the other hand reported its first profit decline in almost a decade."

sorry i still don't understand, apple still made a bigger profit than samsung plus samsung is a more diverse company, they sell washing machines, tv's etc.. where as apple only sells a small range of products.

I own a Samsung GNote2 and do like samsung products (have a TV etc..) however i fail to see how samsung is anywhere near the level of success that apple is currently enjoying, a slight dip at the beginning of the year after a decade is not a sign of loss it's just a sign of uncertain markets during a prolonged recession.

that is not how I read it, profit increased 42% which AMOUNTED TO $6.5b. Therefore 6.5b +8.976b (58%) = $15.476b profit.

Editor, please correct me if i'm wrong...

neokal said,

Editor, please correct me if i'm wrong...

No need to rely on the editor to correct you; you can just use the link to Samsung's financial report to realise that you've got it wrong.

competition creates innovation so it is good thing
own products bye both so i hope the challenge remains for the pair of them
as far as monetary issues apple has none

I think Apple's marketing has become lacklustre... And part of this is because there's been no MAJOR push on features, so what's to market? iPhone5 - like before but a little bit more. However, I feel the same about the Galaxy S4 - not much of a leap from my Note 2.

nik louch said,
I think Apple's marketing has become lacklustre... And part of this is because there's been no MAJOR push on features, so what's to market? iPhone5 - like before but a little bit more. However, I feel the same about the Galaxy S4 - not much of a leap from my Note 2.
Bec the Galaxy S isn't in the same category as the Note 2...DUH!!!

Yeah I agree... Apple has been going downhill rapidly.
Not that I have anything against them, but iPhones just aren't...
"The Next Big Thing", lol. They really are "sooo yesterday".

Raa said,
That's because Samsung charge a realistic price for their products.

iPhone 5 - 16GB: $699.99
Galaxy S4 - 16GB: $749.99

Dinggus said,

iPhone 5 - 16GB: $699.99
Galaxy S4 - 16GB: $749.99

The Samsung will have the higher end components, so the price will be more realistic vs the iPhone, which is more trading on brand.

I bought two iPhone 5's ... very happy with the price point. Realistic? What is that? Apple's phone sales are still HUGE ... how can you say it's unrealistic? Ahhh, what you mean is Samsung make cheaper quality devices, and charge less for them? Right ... that's more like it

ffs. said,
LOOOOOOOOOOOOOOOL APPLE IS GETTING PWNED.
No! SAMSUNGED!!!!

What happens when you sue your best friend? Your best friend becomes the new friend to have.

Apple strategy has always been....any company can be our friend as long as you don't compete against us. Apple was perfect happy with Microsoft when they made the OS for the APple II, and they made Office for the Mac. But as soon as Windows came along to compete...Apple didn't want to be friends anymore.

When iPhone first came, they were happy to be Google's friend...using Google Maps, YouTube and Google Search. Now that Google has an OS that compete, Apple has distanced itself by dropping Google Maps, Google Search and YouTube. Now you have to download them yourselves if you want them.

Who's next? Apple diss'd Intel even tho they didn't compete. But Intel was an original investor in Apple's platforms. They smack Intel in the face by choosing Sega Chips (the ols 64K macs cpu the Motorola 68k) and then moved to PPC through iBM. Now they kiss up to Intel.

Just like they had to kiss up to Microsoft in 1997 and after the Apple Maps debackle, you know SOMEONE at Apple was all over Schmidt's jock.

Who will be next? This is what I am betting. Apple has been trying for the past 2 years to ditch Samsung for making chips. They have moved to TSMC, a company who has a recoding of "not delivering" on time. Which means iPhone will take even longer to make if they cant keep up and that could mean quality issues as Samsung is the only company on the planet who can make as many chips as Intel can at the same high quality. This could hurt Apple and if it does, I am sure Apple will go vrawling back to Samsung.

Facts show chips cost have increase because of the newer chip making processes for making them smaller. Apple didn't want to pay Samsung and went for the bargain so they could keep phones at the same cost. Yet Samsung is making newer phones that remain basically at the same cost. Hmmmm!

Samsung is the new Apple. Aluminum and fancy commercials aren't enough. Apple better wise up or they are going to be at the bottom looking up another @$$ to kiss.

virtorio said,
Samsung profit: $6.5B
Apple profit: $9.5B

That's the kind of "PWNED"ing I could get used to.

Samsung's first quarter, doesn't include the Christmas Holiday season like Apple's does. Apple tends to sell more product at holiday's, but don't sustain those sales for longer than 2 quarters...vs Samsung who retains similar sales numbers or better each following quarter.

Dinggus said,

iPhone 5 - 16GB: $699.99
Galaxy S4 - 16GB: $749.99


Depends on where you buy it. It is a no duh that if you buy something direct from the company it cost more...dummy. That is why we have options. Unlike iPhone which retails for the exact same price everywhere, Android phones do not.

http://www.amazon.com/gp/produ...&pf_rd_i=Galaxy%20S%204 - 689.99 making it less than an iPhone 5 and the iPhone 5 should be cheaper since it is last years model vs the Gs4 which just came out.

I never even found the $749 price...Wirefly is at $715.
But trying to compare a price of a phone that never changes until the new model arrives 365+ days later to one that was just released a month ago is a total and uttered failure and a true reach for straws.

Lets compare what you get

You get a phone that almost doubles the speed of the iPhone 5 in benchmarks.
You get a 5"devices that is smaller than its 4.8" predecessor.
The GS4 has more cores, more in both models...yet manage to have a larger battery and equal battery-life to the iPhone 5.
Full Multi-tasking vs Apple retarded way
Flash support, better HTML5 support
Open file system so apps can easily share file
fully customizable UI
widgets

Wired and wireless syncing with no need for iTunes...
Flash storage and expandable storage and so much more.

Why you trying to compare Apple who doesn't compete on this level?

Oh and poly-carbonate factually is not a plastic and has been proven in this case of usage to be better than allows at being water resistant, scratch resistant*, damage resistant.

The asterisk? Poly-Carbonate is even more porous vs Aluminum, which makes it just as easy to scratch. To help aid it, Samsung uses a glossy coating which protects the case so that you actually will scratch the coating off first. The coating is easy to repair which clear enamel fingernail polish. Such cosmetic tricks wont work on an iDevice.

Edited by Hi_XPecTa_Chens, May 1 2013, 5:13pm :

Dinggus said,

iPhone 5 - 16GB: $699.99
Galaxy S4 - 16GB: $749.99


iPhone 5 - 16GB: $699.99 dualcore, 1GB RAM, no real multi-tasking, half-bakes HTML5 support, Apple Maps garbage, siri garbage (fast but less accurate), available with 240 carriers, 100 countries, no removable battery or expandable storage, alloy casing that requires plastic or rubber to protect, comes 16/32/64, can't choose default apps, can't send whatever file type you want, can't be used for USB storage, cant send file via BT, can't choose specific resolution of picture taken, can't theme the UI/ add fonts/ add widgets, received a 3 out of 10 user repairable score, can't sideload apps or media, 4" screen @ 1136x640, HD camera/8MP etc

Galaxy S4 - 16GB: $749.99 quadcore/octacore, 2GB RAM, real multi-tasking, full HTML5 support, google maps awesome, s-voice awesome (little slower more accurate), avail at 300 carriers, 150 countries, removable battery and expandable storage, already made of a durable poly-carbonate case and no extra case needed, comes 16/32/64 and you can add 64gb more, can choose default apps, can email any file type, can be used for USB storage, can send via BT, can choose resolution of picture taken, full user customization of everything out the box, 8 out of 10 repairable score, can sideload apps/media out the box, 5" @ 1920x1080, 2MP HD/13MP HD, etc

Even if I was stupid enough to pay Samsung's asking price, it would be money very well spent.

When you pay more, you expect more. The iPhone when it was first released did less than many of the phones it claimed to replace, yet it costs more. By 2009 the iPhone showed it ages as HTC beat Apple sales for 2 quarters with only 2 phones. They won with better features and capabilities...not better pricing as they all were 199.99 on a contract and they were $699 off contract. YEt you got more of everything including screen size

Edited by Hi_XPecTa_Chens, May 1 2013, 6:33pm :

TechieXP said,
keyboard warrior

Insulting me because I posted prices? I got them both from BestBuy as a quick comment. Relax.

Remember S4 just came out, we can compare when 5S comes out.

Spirit Dave said,
Sweet ... I wonder when they're gonna start making good phones?
Oh you mean like the 40M+ Galaxy S III's they sold? How about the 10M+ Galaxy Note 2's they've sold? How about the fact the Galaxy S II which is a year old is selling hot as well over 10M+?

How about the fact the Galaxy S IV is selling so fast? Samsung had a pre-order of nearly double what the GS3 had and Samsung couldn't even fill 1/2 right away.

I guess you have to define what a good phone is. I would say, if you can sell 70M phones in 90 days, they are all good phones.