Originally Posted by EricTheHalfBee
Your numbers are so far off it's not even funny. GS3 had already hit 10 million sales by Mid July (according to Samsung). They also hit 20 million by Sept 6th and 30 million by Nov 2nd. The GS3 has been pretty consistently selling at 5 million units per month since it was released at the end of May (and there was an initial surge of buyers which is why they were able to hit 10 million in mid July).
Thank you. I appreciate your checking.
I took that into account. The GS3 was production constrained that first June. It had a lot of preorders, but shipments didn't start in earnest until July, and preorders don't count towards quarterly sales numbers with either Apple or Samsung. With Apple, the unit has to ship to count as a sale (or delivered if going direct to a consumer), and with Samsung, the unit has to be delivered to the buyer, retail or consumer.
However, even if we used your lowest GS3 numbers, once we add back the Note 2 sales (~7 million in 4Q), those two high end devices alone total at least 35 - 40% for the last quarter of 2012.
All that also still leaves out all the mid-range phones, which are not bad at all.. they're basically like a 3GS or better. They probably add another 30%, but I'll have to find some numbers. The remainder are the actual low end devices that people keep bringing up. A lot, but not likely the majority.
The upshot is, it appears that at least half of Samsung's sales are NOT low end phones, even if they're also not the highest end phones with large screens and Wacom pen technology.
Bottom line is Samsung sells a LOT more cheap phones than they do GS3's or Notes. This is why their margins are so low (17.4%). Samsung makes very good margins on the GS3 and Note (just like Apple does on their iPhones) but makes slim margins and low end devices (like everyone else). The margin tells the whole story of just what Samsungs mix is of low-end to high-end phones really is.
Heh. Samsung wishes they could make as high margins on their top phones like Apple does, but they average a lot lower ASP.
Reports show that yes, they do sell a lot of low end phones at $80-145 (especially in economically constrained countries like Greece and India). Those have very low margins, under 10%. They also sell a lot of mid-level $150-$250 phones with really nice specs, and better margins.
Edited by KDarling - 1/25/13 at 12:13pm