Samsung Shining: Profit Surges to Record $4.4 Billion, Beats Apple in Smartphone Sales

By Alexandra Burlacu | Apr 29, 2012 10:44 AM EDT

Share This Story

  • Print
  • Email

Galaxy smartphone sales have surged, driving Samsung Electronics' earnings to a record high in the first quarter. Though this is usually a tough season for the global consumer electronics industry, Samsung managed to outshine its rivals with strong quarter earnings.

Follow us

According to analysts, Samsung likely sold more smartphones than Apple in the first quarter, and gained more than 70 percent of its operating profit from mobile businesses. The company's net profit nearly doubled from the previous year to a record KRW5.05 trillion won ($4.46 billion) for the fiscal quarter ended March 31.

Samsung also marked a record high in terms of operating profit: 5.85 trillion won, meaning a 98 percent rise year-on-year. Sales climbed 22 percent from the previous year to 45.3 trillion won.

Lower Profit from Memory Chips

Strong demand for high-end Galaxy smartphones helped attenuate lower profit from memory chips, another flagship business for Samsung. The company expects to break its record profit in the coming quarters. Samsung will unveil its next-generation Galaxy phone on May 3, and global demand for PCs is picking up, which will earn more cash for the Korean company.

"Despite difficult business conditions including low seasonal demand for major products such as PCs and TVs amid a global economic slowdown, we achieved record quarterly results based on our differentiated products and technology leadership," Robert Yi, Samsung's senior VP and head of investor relations, said on a conference call. "We cautiously expect our earnings momentum to continue going forward, as competitiveness in our major business is enhanced."

Surging Sales of High-End Smartphones

Samsung's mobile communications divisions earned 4.27 trillion won of operating profit in the quarter, due to surging sales of high-end smartphones in developing markets including China, a key market for mobile makers. The company narrowly beat Apple in last year's smartphone shipments, taking 20 percent of the global market. Apple claimed 19 percent, according to Strategy Analytics. Moreover, analysts estimated that Samsung's smartphone sales during the quarter exceeded Apple's sales (35 million iPhones) by a large margin.

On the other hand, Apple's iPhone and iPad business is still more lucrative. Apple earned $11.6 billion in the quarter ended March 31, more than twice as much as Samsung. Its revenue, however, was about 10 percent less. Once a rookie in the smartphone business, Samsung quickly moved forward and now challenges Apple with its Google Android operating system.

Sales of iPhones and iPads Boost Samsung's 1Q results

Samsung and Apple have ongoing patent battles on four continents, but strong sales of Apple's iPhone and iPad still boosted Samsung's first-quarter results. Apple is Samsung's key customer in its semiconductor and display business, and had a major role in turning Samsung's display panel division into profit.

Samsung's display panel business reported a 280 billion won, on account of increased sales of 3-D TV panels and high-resolution Tablet PC panels. Meanwhile, Samsung said its operating profit from its semiconductor business reached 760 billion won in the first quarter, which is less than half from the previous year.

(reported by Alexandra Burlacu, edited by Dave Clark)

 

Get the Most Popular Mobile&Apps Stories in a Weekly Newsletter

© 2014 Mobile & Apps All rights reserved. Do not reproduce without permission.

Featured Video : Intel Pocket Avatars

Join Our Conversation

Smartphones
HTC Nexus 9 (Volantis) conceptGoogle Nexus 9 to debut on Oct. 8 at HTC’s ‘Double Exposure’ event?
Record iPhone 6, iPhone 6 Plus pre-order demand will push delivery into October
Samsung Galaxy Grand Prime selfie phone leaks: Images, specs, purported launch timeframe
OPPO N3 leaks in exclusive images ahead of October launch, reveals unorthodox design
Tablet / Laptop / PC
Dell Venue 7 and Venue 8Dell unveils Venue 7 and Venue 8 Android 4.3 Jelly Bean tablets
Retina iPad Mini facing delays, may not launch until early next year
Refurbished 128GB iPad with Retina Display now available on the Apple Online Store
Samsung Galaxy Note 10.1 – 2014 Edition: Pricing and availability now official
Gadgets
Amazon LogoAmazon reportedly to launch ‘Firetube’ set-top box before 2013 holidays
Samsung Galaxy Note 3 and Galaxy Gear India launch: Pricing and availability
Samsung Galaxy Gear Android smartwatch now up for pre-order in Canada
Samsung Galaxy Gear 2 reportedly in the works already, may debut at CES or MWC 2014
OS / Software
HTC LogoHTC reportedly considering Android/Windows Phone dual-booting smartphone as Microsoft pushes for deeper Windows mobile integration
iOS 7 Chrome Incognito mode leaks private searches due to bug
Sprint HTC One Android 4.3 Jelly Bean already rolling out, AT&T, T-Mobile & Verizon to follow
Microsoft Windows 8.1 now available for pre-order
Internet / Social Media
Google DowntimeGoogle blacks out for two minutes, causes 40 percent drop in world’s Internet traffic
Xbox Music web player is live and ready for Xbox Music Pass subscribers
Facebook Android app collected phone numbers even if users never logged in
Firefox 22 brings support for web video calls, 3D gaming, and Unreal Engine 3
What's App
Vine update brings new camera experienceVine gets major update, lets you upload previously-shot videos & more (VIDEO)
BlackBerry Messenger (BBM) finally hits Windows Phone – Available as a free download now
Instagram releases Bolt ephemeral messaging app in select markets to challenge Snapchat
PayPal for iOS update brings loyalty card support, other features and enhancements
Copyright © 2014 Mobile & Apps All rights reserved. mobilenapps
Real Time Analytics