Samsung's Q2: 50.5 Million Smartphones Sold, Profits Surge To Record $5.9 Billion

[jpeyton]

http://in.reuters.com/article/2012/07/27/us-samsung-smartphones-idINBRE86Q02H20120727

http://www.reuters.com/article/2012/07/26/us-samsung-earnings-q-idUSBRE86P1VJ20120726

And Q2 only included 1 month of limited release for the SGS3; Samsung's Q3 results should be even better.

 

[Bateluer]

They need to be sued for copying Apple by moving portable gadgets into consumer hands in exchange for money. Pretty sure Apple invented that.

 

[swanysto]

In before Cheezy craps apples on this thread.

 

[Oyeve]

In before Cheezy craps apples on this thread.

Me too.

 

[cheezy321]

Callout Thread! MODS!

Good for Samsung. The SGS3 stands well on its own two feet. I saw one out in the wild yesterday and got to play with it. Solid phone.

I'm not going to do anything stupid like call Samsungs 'peak'. They have many good quarters and a lot of growth ahead of them. They are clearly the first company you should look at when purchasing an android phone.

On a side note, I am really curious what the hell Google is going to do with Motorola. I thought they would start making a splash with phones by now.

 

[Oyeve]

Callout Thread! MODS!

Good for Samsung. The SGS3 stands well on its own two feet. I saw one out in the wild yesterday and got to play with it. Solid phone.

I'm not going to do anything stupid like call Samsungs 'peak'. They have many good quarters and a lot of growth ahead of them. They are clearly the first company you should look at when purchasing an android phone.

On a side note, I am really curious what the hell Google is going to do with Motorola. I thought they would start making a splash with phones by now.

I think they bought moto for its patents. They probably dont give a rats ass about them as a product.

 

[jiffylube1024]

Callout Thread! MODS!

Good for Samsung. The SGS3 stands well on its own two feet. I saw one out in the wild yesterday and got to play with it. Solid phone.

I'm not going to do anything stupid like call Samsungs 'peak'. They have many good quarters and a lot of growth ahead of them. They are clearly the first company you should look at when purchasing an android phone.

On a side note, I am really curious what the hell Google is going to do with Motorola. I thought they would start making a splash with phones by now.

Yeah, they need to start by simplifying the product lineup. I read recently that the new Photon Q 4G LTE will have an unlocked bootloader... Great! Who knows what a photon q is? Anyone? They need to stick with a product name like apple, Samsung and Asus to start. HTC started to do this with the HTC One but it's getting complicated again...

 

[Phokus]

In before Cheezy craps apples on this thread.

Hahahaha!

 

[jpiniero]

I think they bought moto for its patents. They probably dont give a rats ass about them as a product.

Oh definitely. Of course it did cost them more than all of the revenue they had made on Android to that point.

 

[Mopetar]

Oh definitely. Of course it did cost them more than all of the revenue they had made on Android to that point.

Probably going to cost them more as the company is still losing money. It's like Google's very own version of Microsoft's online services division.

I would be interested in seeing the detailed financials for Samsung as they do make more than just smart phones. Given that that use a lot of their own parts and that Apple also had large sales uses a lot of Samsung parts, I imagine that the other parts of their company also did quite well, given that Apple and Samsung together accounted for about half of smart phone shipments this past quarter.

 

[psych2]

Looking forward to seeing the Q3 results. The GSIII was just the first part of samsung's 1,2 punch, with the Note 2 coming in around August. Apple just can't catch a break :twisted:

 

[CVSiN]

also 10 Million GS3s sold in July alone.
good stuff.

 

[Phynaz]

Definitely confirms the smartphone market is a duopoly.

 

[Phynaz]

Looking forward to seeing the Q3 results. The GSIII was just the first part of samsung's 1,2 punch, with the Note 2 coming in around August. Apple just can't catch a break :twisted:

Did we have to make this another Apple vs Samsung thread?

 

[Ns1]

Definitely confirms the smartphone market is a duopoly.

yep

 

[Mopetar]

Looks as though the detailed financials have finally been released. Their mobile sales looks to account for a bit more than 40% of their revenue, which is up from about 35% last quarter and around 25% from the same quarter in the previous year. Oddly, their semiconductor division is actually down about 13%, but the report indicates that this may be largely due to weak DRAM demand and NAND prices continuing to fall.

Another interesting thing is that even though their revenue in their consumer electronics division (TVs, etc.) only grew by 2% year-over-year, their profitability from that division was up over 500%. There wasn't too much information about why this occurred, but they do mention transitioning towards more LED TVs, which may be more profitable for them.

They also apparently sold off their spinning hard disk division to Seagate for ~$1.4 billion, but they only received half of that in cash. Kind of a bummer there for me personally, since I've been buying Samsung branded HDDs for a while now because they've been more reliable for me than other brands. Might also explain why they've been priced so low.

 

[Phynaz]

How much of that $1.4B made it to the bottom line?

Or is that $5.9B GAAP?

 

[Mopetar]

How much of that $1.4B made it to the bottom line?

Or is that $5.9B GAAP?

Not sure, but at most half, according to Tom's as the other half was for Seagate stock. Also, I'm not sure how it would get marked on the books. While they probably made some profit from the sale, they probably had the division marked as assets, so they would have to deduct that value. Also, even though they officially sold it this quarter, it may not get counted until regulators approve of everything.

So really, I have no idea at all. I just saw that it was included one of the articles that I had read about Samsung's earnings and thought it was kind of interesting. Maybe someone with a better knowledge of accounting practices could give you a better idea of how it would be recorded/reported.

 

[jiffylube1024]

Another interesting thing is that even though their revenue in their consumer electronics division (TVs, etc.) only grew by 2% year-over-year, their profitability from that division was up over 500%. There wasn't too much information about why this occurred, but they do mention transitioning towards more LED TVs, which may be more profitable for them.

I read that Samsung invested something like 3+ trillion won into R&D for larger OLED screens, so maybe that plays a factor. Whatever it was, Samsung is investing heavily in OLED to replace LED TV, so the future is looking very interesting indeed.

 

[dagamer34]

I read that Samsung invested something like 3+ trillion won into R&D for larger OLED screens, so maybe that plays a factor. Whatever it was, Samsung is investing heavily in OLED to replace LED TV, so the future is looking very interesting indeed.

If Wikipedia is accurate, Samsung makes 97% of the world's OLED screens, and considering the number of Galaxy S, S II, and S III phones sold, it makes a lot of sense too.

 

[Dari]

Is this Samsung or Samsung Electronics or the parts that makes cellphones and tvs? For a really large company like Samsung, with hundreds of thousands of employees, and a revenue that equals 20% of the entire GDP of S. Korea, these numbers are ok. But there are dark clouds on the horizon. With their mobile division making so much of the profit and so many competitors pouring into that market, things can only get worse. I mean, even SONY is coming out with a new phone every day. They probably make as many different phones as Samsung and sell it everywhere except America. Add other Asian competitors and the Android market is becoming saturated and there will be casualties. Samsung seems better prepared for this than other manufacturers but it can also be devastated if competitors move away from her components for obvious reasons. I would not be surprised if Samsung started selling other parts of its empire in order to appease investors. This would be counterintuitive to how Asians view businesses but Japan learned that lesson late but it is now fashionable. We shall see.

 

[jpeyton]

Is this Samsung or Samsung Electronics or the parts that makes cellphones and tvs?

Read the article?

With their mobile division making so much of the profit and so many competitors pouring into that market, things can only get worse. I mean, even SONY is coming out with a new phone every day.

Who are these so-called "competitors pouring into that market"? Sony has already been in the market for a while; same with LG, HTC, Motorola, Acer, Sharp, NEC, Dell, Pantech, Meizu, Huawei, ZTE, etc. Most of these competitors have been in the market for a couple of years or more, as long as Samsung has.

What most of these competitors, including Apple, DON'T have in common with Samsung: vertical integration. Samsung makes their own screens, SoC, batteries, radios, flash memory, cameras, sensors, etc.

Add other Asian competitors and the Android market is becoming saturated and there will be casualties.

There have already been casualties; Samsung seems to be the company doing the killing. The company with the most to lose if smartphones become cheap and commonplace is Apple; they can still make a hefty profit on hardware sales, but their app ecosystem will suffer if their marketshare plummets to <10% of the market (right now they are at ~20%).

 

[PingviN]

Definitely confirms the smartphone market is a duopoly.

If two manufacturers sells half of the smartphone is a duopoly to you, then yes. I disagree.

If you look at high-end devices, I'm sure that the situation looks a bit different (probably more dominated by Apple and Samsung), but smartphones overall?

 

[poofyhairguy]

Who is green in that graph?

 

[Yongsta]

Who is green in that graph?

Other, every other manufacturer combined.