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Samsung Report Incredible Record High Quarterly Earnings

Eric McBride
5

 

It's no secret that Samsung is moving an absolutely insane amount of Android devices right now, and in the process are also making insane amounts of cashflow. The Galaxy S2 was a massive hit with over 20 million sold, and Samsung seem willing to bet the bank that the Galaxy S3 will be "their most successful smartphone ever sold". A few days ago I wrote an aritcle about how Samsung seem to be moving into a monopoly like position when it comes to Android phones,  and they do that as HTC, Sony, Motorola, and LG all seem to struggle. Samsung on the other hand sells like there's no tomorrow, and while I knew they must be doing well in terms of sales, I was shocked today to learn that after reading their Q1 reports that profits are up an unbelievable 82%.

That's just INSANE. Not only that, but Samsung also reports a 4.5 billion dollar quarterly net profit, which is a record for the company that's existed since 1938. The combination of tremendous sales of Android phones, cameras, home appliances, and other electronics have simply made HTC, LG, and Motorola look very weak in terms of numbers, and to make matters worse for other OEM's, those numbers came BEFORE the release of the Galaxy S3 next week.

Year on year growth was also staggering. The company earned 40 billion US dollars in revenue, which is a 22% increase compared to revenue a year ago. Samsung also managed to make records in operating profits, and turned in a record 5.1 billion, which is a 98% increase from a year ago. Net profits also increased 82% year on year.

That's honestly scary in a way. This isn't just growth...it's domination. I do realize that Samsung makes money on other things than just phones and tablets, but then again so do other OEM's like LG, Sony, ect. But no other company are throwing numbers like this, and it's great to see Androids biggest manufacturer having the best success it's ever had.

What remains to be determined however, is how bad it is for the rest Android OEM's. Make no mistake though... it's shaping up to be a HUGE year for Samsung and Android. 

Congrats on the success Sammy :-D

Picture credits: (logo) Phandroid.com (cash) colourbox.com 

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Comments

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  • ljhaye Apr 27, 2012 Link

    Samsung's quarterly handset division profits nearly tripled to 4.27 trillion won ($3.8 billion), accounting for 73 percent of total profit, and operating margins jumped to 18.4 percent from 12 percent in the preceding quarter on strong sales of the Galaxy S and the Note phone/tablet, the surprise consumer hit of recent months.

    With these numbers it should be of no surprise, that apple and samsung combine to make 90% of all handset profits. The other OEMs are losing money as smartphones become commoditized and it's reflected in the earning reports at LG, HTC, and Sony. Samsung will own android with Google's blessing at least for smartphones.

    BTW Kindle Fire owns 54.4% of "Android" tablet market, WoW

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  • Eric McBride Apr 27, 2012 Link

    Totally agree. The issue is how other OEM's can bounce back, not just in smartphone sales but overall. If Samsung continues this growth, their name will continue to be pushed to the front of consumers minds when it comes to buying phones.

    And yeah..the kindle is rockin it. But that doesnt doesnt shock me, as Amazon are very good at what they do.

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  • ljhaye Apr 27, 2012 Link

    @Eric--The other OEMs can not bounce back, since they do not control their supply chain. It's the dirty little secret that Apple has used as a weapon for the past decade. Only Samsung has figured it out and is the only other OEM capable of emulating this type of control. They also make their own chips and screens. Your starting to see how this affects other OEMs by looking at the Motorola razr hd which cannot use any of samsungs new samoled screens since Samsung will be using that tech for their future flagship products. Same thing with the exynos processor, they are trying to get away from Qualcomm and nvidia " generic" chips. The exynos is already a better chip but the other OEMs will not be allowed to use it.

    Mark my words in time samsung will become a " walled hardware garden" and that will be the death of all the other android OEMs. The only player Samsung respects and does business with is apple and even that's a frenemy relationship.

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  • ljhaye Apr 27, 2012 Link

    @Eric-- Amazon’s Kindle Fire now makes up the absolute majority of the Android tablet platform in the US, at second place, the entire Samsung Galaxy Tab lineup comprised just 15.4 percent of Android slates. No other manufacturer got above 10 percent, with Google’s reference tablet, the Motorola Xoom, stopping at seven percent.

    Android will not become a dominant platform without an adequate presence in tablets. These numbers are disturbing because the windows metro tablets are due out in the fall and apple is selling 12-15 million tablets a quarter. I really don't understand how Samsung as pure google/ android device OEM and the others ( including the transformer prime with its wack GPS fix) are losing to the kindle fire. In the next two to three years we may find out that apples approach was the " right" approach to building an ecosystem( iCloud, iPad, iPhone, MacBook, iTunes , retail stores, and integrated supply chain) . Sigh, I get depressed thinking about it but I do respect Steve Jobs, man was a BEAST!

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  • Eric McBride Apr 27, 2012 Link

    @ljhaye - Perfectly said! This is why I wrote about Samsung becoming a monopoly on Android. It WILL happen, and its going to be a dangerous situation if it does. At the same time, it will be an extremely profitable one for Google and Samsung.

    And the tablets are also a big factor. I think the pricing and marketing play a huge impact here. The kindle doesnt even count for me as a true Android tablet, and I think that Asus and Samsung will have keep pump out more high quality tablets that are more competitively priced if they ever want to win that market or gain significant marketshare.

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