Samsung reports "Operating Profit". Apple reports "Net Income".
What's the difference?
Lastly, most of the clickbait profit comparison reporting between Apple and Samsung usually involve Samsung's integrated device blah blah division (the one with phones) versus Apple's iPhone results. This click bait reporting for total operating profit is a different angle. As I recall, Samsung usually reports 5b to 10b of operating profit as a whole for their electronics, semiconductor components division. They've always had a lot of revenue, and profits fluctuated with the usual things driving margins.
I was simply citing Wikipedia which says Samsung Electronics "is the flagship division of the Samsung Group, accounting for 70% of the group's revenue in 2012." Sounded like "ownership" to me when I was doing my research prior to commenting here.
Yeah, that Wikipedia article is garbage. Samsung is way more complicated than that. This table only shows the crossholding of Samsung companies, missing are the direct holdings of the Lee family.
Samsung reports "Operating Profit". Apple reports "Net Income".
What's the difference?
Lastly, most of the clickbait profit comparison reporting between Apple and Samsung usually involve Samsung's integrated device blah blah division (the one with phones) versus Apple's iPhone results. This click bait reporting for total operating profit is a different angle. As I recall, Samsung usually reports 5b to 10b of operating profit as a whole for their electronics, semiconductor components division. They've always had a lot of revenue, and profits fluctuated with the usual things driving margins.
Both companies report operating profit (also referred to as operating income) and net income (also referred to as net profit).
This is just an estimate from Samsung, its actual results will be reported later. For its advance estimates it doesn't give all of the metrics (e.g. net profit) that it will give when it reports results.
Operating profit (or income) is what a company makes from its main business operations. It doesn't include certain other kinds of income or expenses - e.g., interest the company earns on cash holdings or financing costs it incurs. It also doesn't include provisions for income taxes. Those things are added to and subtracted from operating income to leave net income.
Also, yes, these reports from Samsung aggregate the results of 3 independently operated divisions: Consumer Electronics (e.g. TVs, washing machines, medical devices), Information Technology and Mobile Communications (e.g. computers, cell phones, network systems), and Device Solutions (e.g. memory, camera sensors, display panels). Those aren't just separate reporting segments, they are separately run businesses. That's why Samsung can report not only revenue for each division, but operating profit for each division.
The ratios vary from quarter to quarter, but over the last two years the Device Solutions division has been the biggest contributor to Samsung Electronics' profits, accounting for around $13 to $14 billion in operating profit per year - with most of that coming from the Semiconductor sub-division. The IT and Mobile division has accounted for around $9 billion in operating profit per year. It used to account for much more.The Consumer Electronics division accounts for a comparably small amount of operating profit.
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What's the difference?
Lastly, most of the clickbait profit comparison reporting between Apple and Samsung usually involve Samsung's integrated device blah blah division (the one with phones) versus Apple's iPhone results. This click bait reporting for total operating profit is a different angle. As I recall, Samsung usually reports 5b to 10b of operating profit as a whole for their electronics, semiconductor components division. They've always had a lot of revenue, and profits fluctuated with the usual things driving margins.
Samsung is way more complicated than that. This table only shows the crossholding of Samsung companies, missing are the direct holdings of the Lee family.
This is just an estimate from Samsung, its actual results will be reported later. For its advance estimates it doesn't give all of the metrics (e.g. net profit) that it will give when it reports results.
Operating profit (or income) is what a company makes from its main business operations. It doesn't include certain other kinds of income or expenses - e.g., interest the company earns on cash holdings or financing costs it incurs. It also doesn't include provisions for income taxes. Those things are added to and subtracted from operating income to leave net income.
Also, yes, these reports from Samsung aggregate the results of 3 independently operated divisions: Consumer Electronics (e.g. TVs, washing machines, medical devices), Information Technology and Mobile Communications (e.g. computers, cell phones, network systems), and Device Solutions (e.g. memory, camera sensors, display panels). Those aren't just separate reporting segments, they are separately run businesses. That's why Samsung can report not only revenue for each division, but operating profit for each division.
The ratios vary from quarter to quarter, but over the last two years the Device Solutions division has been the biggest contributor to Samsung Electronics' profits, accounting for around $13 to $14 billion in operating profit per year - with most of that coming from the Semiconductor sub-division. The IT and Mobile division has accounted for around $9 billion in operating profit per year. It used to account for much more.The Consumer Electronics division accounts for a comparably small amount of operating profit.