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Samsung pre-announces earnings, profits surge 53% to $7.7 billion

post #1 of 64
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Apple's main rival Samsung pre-announced its earnings on Friday, revealing that the company had an even stronger-than-expected quarter with operating profits of 8.7 trillion won, or $7.7 billion U.S.

Samsung
Samsung's recent success is believed to have come from low- and mid-level smartphones.


The numbers represent a 53 percent from Samsung's earnings in the first quarter of 2012. In all the company had sales of 52 trillion won, which equates to about $46 billion, up 15 percent from the year-ago quarter.

Analysts polled by Thomson Reuters had expected Samsung to see 8.3 trillion won in operating profit and 53 trillion won in sales, as noted by CNNMoney.

It's believed that Samsung's quarter was driven by low-end and mid-level smartphones. The company's flagship device, the Galaxy S III, took a hit in the wake of Apple's iPhone 5, while consumers awaited Samsung's next-generation handset, the Galaxy S4, which will become available for preorder April 16.

Samsung's better-than-expected quarter ahead of the Galaxy S4 launch may further drive home the belief among investors that Apple needs to offer a new low-cost smartphone that could be sold to consumers without a carrier subsidy. Rumors have suggested that Apple is planning to launch such a device later this year.

As for Apple's own fiscal quarter, the iPhone maker will report its earnings on Tuesday, April 23 after the markets close. A conference call will follow at 5 p.m. Eastern, 2 p.m. Pacific.

Analysts expect that Apple will reveal sales growth of around 9 percent, but net income will have dropped by about 17 percent year over year. The company's stock has struggled over the last six months as investors have expressed concern that Apple's growth could be slowing in the wake of surging competitors like Samsung.
post #2 of 64

Samsung or Samsung electronics ?

post #3 of 64
1) edit: Pipped by umrk_lab.

2) Either way, it's pretty good for being half of what Apple makes. I hope the other vendors using Android can find a way to come back into the black after Samsung destroyed competition by their less than ethical tactics.

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #4 of 64

Ars Technica's headline:  Samsung’s string of record quarterly profits ends softly at a cool $7.7 billion

 

http://arstechnica.com/business/2013/04/samsungs-string-of-record-quarterly-profits-clocks-in-a-cool-7-7-billion/

 

Samsung will continue to be an "also-ran" until they can manage to do original work and not be such thieves.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #5 of 64

Great profits steal? ;-)

Citing unnamed sources with limited but direct knowledge of a rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of a rumoured device - Comedy Insider (Feb 2014)
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post #6 of 64
When all you get a a single billion (or is it half that now?) slap on the wrist for blatant plagiarism it makes it seem quite worthwhile.

Bring back hanging I say. These 'fines' don't seem to deter wrongdoing.
post #7 of 64
Quote:
Originally Posted by umrk_lab View Post

Samsung or Samsung electronics ?

 

Good point, but regardless their phones will be the majority of that.

Citing unnamed sources with limited but direct knowledge of a rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of a rumoured device - Comedy Insider (Feb 2014)
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post #8 of 64
Quote:
Originally Posted by SpamSandwich View Post

Ars Technica's headline:  Samsung’s string of record quarterly profits ends softly at a cool $7.7 billion

 

http://arstechnica.com/business/2013/04/samsungs-string-of-record-quarterly-profits-clocks-in-a-cool-7-7-billion/

 

Samsung will continue to be an "also-ran" until they can manage to do original work and not be such thieves.

 

There's this joke of an article on Ars Technica that I saw the other day. It must have been written by a braindead Fandroid.

 

 

From touch displays to the Surface: A brief history of touchscreen technology

The beginnings of capacitive, resisitive, and multitouch screens.

 

There's barely a mention of Apple in that article. Yet they keep talking about Microsoft and the Surface as if it was some huge breakthrough.1oyvey.gif

 

How in the hell can somebody have a history of touch displays, without even barely mentioning something like the iPhone and the iPad? It is because of Apple that everybody is using touch displays today. 

post #9 of 64
Quote:
Originally Posted by Apple ][ View Post

 

There's this joke of an article on Ars Technica that I saw the other day. It must have been written by a braindead Fandroid.

 

 

From touch displays to the Surface: A brief history of touchscreen technology

The beginnings of capacitive, resisitive, and multitouch screens.

 

There's barely a mention of Apple in that article. Yet they keep talking about Microsoft and the Surface as if it was some huge breakthrough.1oyvey.gif

 

How in the hell can somebody have a history of touch displays, without even barely mentioning something like the iPhone and the iPad? It is because of Apple that everybody is using touch displays today. 


Because they think Microsoft saved Apple from extinction. 

post #10 of 64
Quote:
Originally Posted by monstrosity View Post

When all you get a a single billion (or is it half that now?) slap on the wrist for blatant plagiarism it makes it seem quite worthwhile.

Bring back hanging I say. These 'fines' don't seem to deter wrongdoing.

Crime does pay, apparently.

 

Who cares about a billion dollar fine, when you've made many more billions than that in profit? And it probably won't even be a billion dollar fine. Some judge or other asshat will no doubt lower the fine.

post #11 of 64
It is time for Apple to pull up their socks and fix all their bugs. They are losing market share to their biggest rivals in Samsung.
post #12 of 64
Quote:
Originally Posted by Apple ][ View Post

There's this joke of an article on Ars Technica that I saw the other day. It must have been written by a braindead Fandroid.


From touch displays to the Surface: A brief history of touchscreen technology



The beginnings of capacitive, resisitive, and multitouch screens.




There's barely a mention of Apple in that article. Yet they keep talking about Microsoft and the Surface as if it was some huge breakthrough.1oyvey.gif

How in the hell can somebody have a history of touch displays, without even barely mentioning something like the iPhone and the iPad? It is because of Apple that everybody is using touch displays today. 

It could be that it's only Part 1 of a 3 part series. Give the next two parts a chance to win you back 1cool.gif. Note too that "Surface" in the article isn't referring to the current Microsoft hybrid tablet.
melior diabolus quem scies
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melior diabolus quem scies
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post #13 of 64
Quote:
Originally Posted by Gatorguy View Post


It could be that it's only Part 1 of a 3 part series. Give the next two parts a chance to win you back8-). Note too that "Surface" in the article isn't referring to the current Microsoft hybrid tablet.

Yeah, the Surface in the article is some huge table.

 

However, it's listed in the timeline for 2008, while the iPhone, which came out in 2007 is nowhere to be found on that timeline.

 

Reading that article was like reading the history of WWII, written by a skinhead.

post #14 of 64
Quote:
Originally Posted by SolipsismX View Post

1) edit: Pipped by umrk_lab.

2) Either way, it's pretty good for being half of what Apple makes. I hope the other vendors using Android can find a way to come back into the black after Samsung destroyed competition by their less than ethical tactics.

I too worry about other Android makers in the shadow of Samsung. HTC is paying attention. Their latest designs are ripped from someone's pages.
post #15 of 64
Quote:
Originally Posted by CentralParkMac View Post

It is time for Apple to pull up their socks and fix all their bugs. 

Huh?

post #16 of 64
Quote:
Originally Posted by Apple ][ View Post

Reading that article was like reading the history of WWII, written by a skinhead.

LOL.

post #17 of 64

Sold not shipped

post #18 of 64
Quote:
Originally Posted by Just_Me View Post

Sold not shipped

This article is talking about profits, not about the number of units sold or shipped.

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #19 of 64
Quote:
Originally Posted by SolipsismX View Post


This article is talking about profits, not about the number of units sold or shipped.

Didnt know you could profit from shipped items that have to be repurchased backed later on

post #20 of 64
Originally Posted by SolipsismX View Post
This article is talking about profits, not about the number of units sold or shipped.


Revenue, not profits. 1wink.gif

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Originally Posted by asdasd

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post #21 of 64
Quote:
Originally Posted by AppleInsider View Post


...Analysts polled by Thomson Reuters had expected Samsung to see 8.3 trillion won in operating profit and 53 trillion won in sales, as noted by CNNMoney.

Trillion ?? Well, Samsung only wishes it was in $$$'s.
post #22 of 64
How do you pre-announce? Didn't they just announce?
post #23 of 64
Quote:
Originally Posted by JupiterOne View Post

How do you pre-announce? Didn't they just announce?

I take it these press releases aren't backed up by offical audits.

post #24 of 64
Originally Posted by jfc1138 View Post
I take it these press releases aren't backed up by offical audits.

 

Their actual numbers aren't backed up by official anything, so it's okay.

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Originally Posted by asdasd

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post #25 of 64
Quote:
Originally Posted by SCProfessor View Post

I'm PayPaling to who will open an iPhone and tell me the names printed inside. I need some edumakation'.
.

Because Samsung makes every single part in their phones?  Riiiiiight.  Open a Samsung phone and you'll see many of the parts are from the same non-Samsung sources as you'll see in an iPhone.

post #26 of 64

The market is not terribly impressed, apparently: http://www.reuters.com/article/2013/04/05/markets-korea-stocks-idUSL3N0CR3L620130405?type=companyNews

 

The buzz is "they spend more on marketing than innovation" (Horrors! I thought only Apple did that!?): http://www.reuters.com/article/2013/04/05/us-samsung-spending-marketing-idUSBRE9340C120130405?type=companyNews

post #27 of 64
Quote:
Originally Posted by icoco3 View Post


Trillion ?? Well, Samsung only wishes it was in $$$'s.

"Trillion" is correct. The won is valued much less than a dollar or euro.

post #28 of 64
Quote:
Originally Posted by icoco3 View Post


Trillion ?? Well, Samsung only wishes it was in $$$'s.

₩'s

post #29 of 64
Quote:
Originally Posted by Dave MacLachlan View Post

"Trillion" is correct. The won is valued much less than a dollar or euro.

Soon, when Samsung's game is up, Korea is going to have no choice but to rename their currency to the lose.

post #30 of 64
Quote:
Originally Posted by Tallest Skil View Post

Originally Posted by SolipsismX View Post
This article is talking about profits, not about the number of units sold or shipped.


Revenue, not profits. 1wink.gif

8.7 trillion won in operating profit (at least according to the article)

 

sales of 52 trillion won

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Life is too short to drink bad coffee.

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post #31 of 64
Quote:
Originally Posted by Ireland View Post

Quote:
Originally Posted by umrk_lab View Post

Samsung or Samsung electronics ?

 

Good point, but regardless their phones will be the majority of that.

Not even close.

post #32 of 64
Quote:
Originally Posted by Apple ][ View Post

Yeah, the Surface in the article is some huge table.

However, it's listed in the timeline for 2008, while the iPhone, which came out in 2007 is nowhere to be found on that timeline.

Reading that article was like reading the history of WWII, written by a skinhead.

Did you really read it? If you did, then you'd have understood that Apple's products will be featured in the next part.

Sigh ...
post #33 of 64
Quote:
Originally Posted by anantksundaram View Post

The market is not terribly impressed, apparently: http://www.reuters.com/article/2013/04/05/markets-korea-stocks-idUSL3N0CR3L620130405?type=companyNews

 

The buzz is "they spend more on marketing than innovation" (Horrors! I thought only Apple did that!?): http://www.reuters.com/article/2013/04/05/us-samsung-spending-marketing-idUSBRE9340C120130405?type=companyNews

From the Reuters article: 

 

 

"Samsung keeps investing in R&D. They've boosted their smartphone R&D workforce to 25,000 or so from less than 20,000, and I think they have an exciting product lineup ready, probably in the second half, to upend the market," said Lee Do-hoon, an analyst at RBS.
 
So Samsung has 25,000 employees just working on smartphone R&D?  Somehow I find that hard to believe.
 
And since the S4 has already been announced I'd be curious to know what this new product lineup is that's going to "upend the market".
 
it blows my mind how much free PR Samsung gets from the media right now.  I mean on CNBC and elsewhere they're getting credited for reviving the brick and mortar stores.  There's an article over at Forbes about how Samsung is "shaking up" retail and how Microsoft needs to take notice.  Does the media not know the whole store within a store concept isn't new?  There's nothing new or groundbreaking about Samsung having a mini-store inside Best Buy,  Sheesh.
post #34 of 64
Quote:
Originally Posted by isaidso View Post

Not even close.

Source?

post #35 of 64
Quote:
Originally Posted by umrk_lab View Post

Samsung or Samsung electronics ?

It doesn't matter.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #36 of 64
Quote:
Originally Posted by AppleInsider View Post

Samsung's recent success is believed to have come from low- and mid-level smartphones.

 

The Reuters and other articles I read said it came from mid-tier phones.

 

They also said that the record-breaking earnings growth was "fueled by" high end phones like the Galaxy S and Note series.

 

I suspect it's a bit of each:  low, mid and high.

 

Quote:
Originally Posted by Apple ][ View Post

Crime does pay, apparently.

 

Who cares about a billion dollar fine, when you've made many more billions than that in profit? And it probably won't even be a billion dollar fine. Some judge or other asshat will no doubt lower the fine.

 

So how do you feel about Apple being hit with a half billion dollar fine (that will probably rise to over $1 B after the next trial) for their Facetime patent violations?

 
Quote:
Originally Posted by Just_Me View Post

Didnt know you could profit from shipped items that have to be repurchased backed later on

 

Apple reports profits the same way: from direct sales and retailer shipments.  Their SEC 10K filing states that returns are accounted for separately.

 

Btw, I've never read of Samsung having to repurchase a lot of items sold to retailers.   Even when the first US tablet end user sales didn't go as quickly as expected, US retailer buying rebounded a couple of quarters later as they sold their inventory and figured out a more realistic amount to purchase for the future.

 

(Retailer overbuying was also a difficulty for Apple's sales a couple of quarters last year.)


Edited by KDarling - 4/5/13 at 2:21pm
post #37 of 64
Quote:
Originally Posted by jdnc123 View Post

Meanwhile, Apple at 52-week low, and may no longer be most valuable tech company in the world by the end of the day or monday.  IBM about to surpass Apple in value despite making far less.  Short-term earnings don't matter this much, the market has lost all faith in this company longer term with current valuation.
what are you talking about? IBM's market cap is at 233 Billion while Apple's is at 397 Billion. Only Exxon is close at 398. These two have been swapping places for the last few weeks.
post #38 of 64
Quote:
Originally Posted by KDarling View Post

Apple reports profits the same way: from direct sales and retailer shipments.  Their SEC 10K filing states that returns are accounted for separately.

 

Btw, I've never read of Samsung having to repurchase a lot of items sold to retailers.   Even when the first US tablet end user sales didn't go as quickly as expected, US retailer buying rebounded a couple of quarters later as they sold their inventory and figured out a more realistic amount to purchase for the future.

 

(Retailer overbuying was also a difficulty for Apple's sales a couple of quarters last year.)

1) Here's Apple's revenue recognition policy from its 10-K, verbatim: "Net sales consist primarily of revenue from the sale of hardware, software, digital content and applications, peripherals, and service and support contracts. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Product is considered delivered to the customer once it has been shipped and title and risk of loss have been transferred. For most of the Company’s product sales, these criteria are met at the time the product is shipped. For online sales to individuals, for some sales to education customers in the U.S., and for certain other sales, the Company defers revenue until the customer receives the product because the Company retains a portion of the risk of loss on these sales during transit. The Company recognizes revenue from the sale of hardware products, software bundled with hardware that is essential to the functionality of the hardware, and third-party digital content sold on the iTunes Store in accordance with general revenue recognition accounting guidance. The Company recognizes revenue in accordance with industry specific software accounting guidance for the following types of sales transactions: (i) standalone sales of software products, (ii) sales of software upgrades and (iii) sales of software bundled with hardware not essential to the functionality of the hardware.

 

In addition, Apple provides channel inventory data during every quarterly conference call, so that you can fairly precisely estimate actual sales. And it provides number of actual units sold (so that an investor can calculate an average selling price). Does anyone else do that?

 

2) Here's Samsung's, from its equivalent of the 10-K: "Sales of products and merchandise are recognized upon delivery when the significant risks and rewards of ownership of goods have transferred to the buyer, continuing managerial involvement usually associated with ownership and effective control have ceased, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the Company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. The Company records reductions to revenue for special pricing arrangements, price protection and other volume based discounts. If product sales are subject to customer acceptance, revenue is not recognized until customer acceptance occurs. 

 

Do you notice any differences?

 

3) Even if Samsung were to repurchase a lot of items, just curious, here would you hear about it? What evidence do you have for your claim that "US retailer buying rebounded a couple of quarters later," and that they "figured out a more realistic amount to purchase for the future"?

 

4) I did not know that "retailer overbuying" was a problem for Apple "a couple of quarters last year." Please tell us more. Where did you see/read/hear about this? How big a problem was it? 0.1% of sales? 1% of sales? 10% of sales? What impact, if any, did it have on Apple's bottom line and/or its profit share?

post #39 of 64
I wonder how long it needs to grow that it earns as much as Apple .
post #40 of 64
OK, now they have the money to pay Apple.
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