Samsung’s Extravagant Earnings in Quarter 2
News • Jul 28, 2012 07:00 BST
The world’s top earning technology company, Samsung, has reported a record profit of $5.9 billion for the second quarter of 2012. With the Samsung Galaxy range topping the charts in almost every sector of the smartphone market, the firm trumps Apple Inc yet again.
The news comes as a mind-play from the Korean giants as the iPhone 5 is due to come out on 21st September, and Apple has been leading up to that date for quite a long time now. Samsung’s profit of $7 billion over the start of the year has mostly been due to the smartphone market, which brings in 60% of the earnings; an incredible figure when you think of all of the other technological gadgets and systems that the firm produces such as air-conditioners, TVs, DVD players, fridges and many more.
The numbers are double that of the same time last year but it’s not just the smartphone market that is growing. Increases in the chip market have seen a 5% rise on last year and flat-screen TVs complete with 3D capability have also risen thanks to TV networks offering full HD or 3D channels. Despite the EuroZone crisis people are still spending and buying electronics, particularly new smartphones so often.
Although the Samsung Galaxy S2 was the best seller last year and early into this year, shifting 5 million handsets per month, the new Samsung Galaxy SIII was better than the 10 million units in two months that was forecasted. This is incredible news and shows just how strong the brand is because customers are obviously buying the new handset through impulse and reputation rather than waiting to hear about any reviews – although they too are astonishingly good.
The news also comes about at the same time as Nokia is having to hit the self-destrcut button. With 10,000 job losses due, scrapping of the operating system and losing so many sales in China, the Finnish company is seeing an end to its 14-year reign at the top of the mobile phone charts. Samsung also project that during June 50.5 million handsets will be shipped compared to that of 26 million of the iPhone. However, the Galaxy brand has so many variations and the iPhone 4S is just one, so Apple are still very much in tune with what the market wants.
The projections for September’s quarter are around 15-20 million Samsung Galaxy SIII handsets which will take it to the top of the charts, although the iPhone 5 release date will most likely affect that. The firm is valued at $160 billion, which is astonishing, but the net profit is only half that of Apple’s $8.8 billion that the Cupertino firm managed this time last year with stunning sales figures over Christmas and New Year from its iPad, iPhone 4S and Mac computer sales.
Of course, there is always going to be two camps; Apple and Samsung, but which one will you choose for your next phone? The Samsung Galaxy S3 or the iPhone 4S (or iPhone 5).