Samsung is enjoying the success of their Galaxy S III as the South Korean company has just announced that—as a whole—they’ve made $5.9 billion in profit last quarter. One thing to keep in mind, is that, that number also includes every other aspect of Samsung Electronics, meaning TV’s, computers, chips, displays and more. That being said, while other areas like TV’s and such are struggling, due to the European financial crisis, Samsung’s Mobile division is skyrocketing (no pun intended) thanks to the release of the Galaxy S III. Some European retailers are reporting growth of up to 40-60%. This is great news for Samsung, as they continue to climb the ladder as the biggest smartphone manufacturer and compete head to head with the folks in Cupertino.
Speaking of Apple, just how does Samsung’s recent record breaking numbers (internally) compare? As impressive as $5.9 billion sounds, Apple still has a bit of a lead, mainly due to their high profit margins. In the 4th quarter last year, Apple made $13 billion in profit from $46 billion in revenue, more than double of Samsung’s current record. As for the first quarter of 2012, Apple saw $11.6 billion in profit from $39.2 billion in revenue. One thing to keep in mind for Apple was the 4th quarter included holiday sales, where as the first quarter of 2012 didn’t and they still saw profits of $11 billion. Like I said, Apple has far fewer expenses and higher profit margins, but regardless, they may not enjoy the 50% smartphone market share like Android, but with nearly $12 billion in profit, I’m sure they’re okay with that.
In any event, congrats to Samsung on hitting $5.9 billion in profit, now if they’d only spend some of that money on more industrial materials for the Galaxy S IV and I think we’d see even larger numbers next year.
Source: Mercury News