by Mike Andrici, 1 year ago
HTC, the second biggest smartphone manufacturer from Asia, has recently announced a 70% year on year drop in profits for Q1 2012 and a 35% year on year decline in revenues. High Tech Computer’s earnings…
The graphic shown may be a year old, but it clearly documents Samsung’s rise to market dominance. It also shows HTC’s former glory days, but that’s a different topic. A year later, the South Korean company has done everything except create an Android kitchen sink and its profits reflect that productivity: Q4 aims to be in the neighborhood of $6.2B.
Driven by 20 million sales, a mere 100 days after launch, the Samsung Galaxy S3 is the primary reason these revenue numbers look so good. Just a year ago, the company was taking a big bet on the original Galaxy Note, and lucky for them, it worked out. the original Note hit just half of what the S3 has, at 10 million sales. But nothing has been as successful as the flagship phone.
On that Note (pardon the pun!), the second gen phablet has seen an increasing amount of competition from the likes of the Nexus 7 and rumors of a mini iPad. Samsung still thinks its bottom line will rocket forward because of the small tablet device, just unveiled at IFA 2012 in Berlin. The aforementioned competition, in no small part, is what Samsung is counting on to drive epic sales numbers on the 2nd gen Note. Confidence comes easy when you’re king of the hill.
I know most of you are wondering if the recent verdict against Samsung will hamper their growth and the bad news is: probably. The mere amount of $1.2B is nothing in light of a record-smashing $6.2B, just up from $5.9 in July. However, if an appeal fails to satisfy a judge and jury, Samsung could be facing a huge obstacle in one of its premiere markets. Only Q3 earnings post in October will show if there has been any “negative public image” effect on sales. Until then, it’s full steam ahead for the company, both with sales, and with due diligence in maintaining their strong American market presence.