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Samsung is on a roll: Q1 earnings top estimates to reach all-time high
We’ve been talking about Samsung’s recent incredible financial run for a while, with reports coming from left and right suggesting the Koreans are doing better than ever, with record smartphone sales, profits, and earnings. The most recent report comes as the cherry on top of Sammy’s cake, and the official confirmation that everything is going better than in even the wildest dreams of the giant’s executives.
According to official earnings results, Samsung’s consolidated operating profit in Q1 2012 reached an all-time high of 5.85 trillion Korean won (around $5.1 billion), which also represents an unbelievable 98-percent increase year-on-year. Reported consolidated net profit for the first three months of this year was 5.05 trillion won (roughly $4.4 billion), which is yet another all-time record for Sammy, but also just north of estimates a couple of weeks back.
The most interesting part of Samsung’s report, at least in my view, is the company’s recognition of the fact that “strong performance in the quarter was driven mainly by the IT & Mobile Communications segment”. “Brisk sales of flagship Galaxy Note and Galaxy S II devices contributed to the company’s profitability” states the report, which comes as no surprise for us here at Android Authority. We’ve always said that the S2-Note duo is the strongest on today’s smartphone market.
Consolidated operating profit for Samsung’s IT & Mobile Communications department has reached an incredible 4.27 trillion won ($3.7 billion) on revenue of 23.22 trillion won ($20 billion), which is impressive any way you look at the numbers. I, for one, can’t help to notice that the mobile division has brought Samsung more than 72% of its entire profit between January and March 2012, which means that the smartphone business can now be called the Koreans’ official number one cash cow.
Aside from Sammy’s report, that is truly impressive, but not in the least surprising, another recent report has drawn our attention. According to research from Strategy Analytics, global smartphone shipments grew 41% year-on-year in the first quarter of 2012, to reach a staggering 145 million units sold.
Samsung is the number one smartphone manufacturer worldwide, according to Strategy Analytics, with a 30.6% share in Q1 2012, flying up from just 12.2% a year earlier. Apple follows in second, with a 24.1% share (up six percent from last year), while Nokia is third, with 8.2% (unsurprisingly down more than 15%).
If we add Samsung’s numbers with Apple’s, we’ll get an astounding 55% market share for today’s two smartphone top dogs, which makes us safely say that the Android vs Apple battle has now turned into a Samsung vs Apple knife fight.
While we can’t predict the future of tech and things are surely moving one way or another really quickly, it’s pretty obvious that Sammy has completely taken over the Android world and the Koreans might have an ace or two up their sleeves for some time to come. Yes, I am talking about the Galaxy S3, which could well push the company’s sales and profits even further ahead in the coming months.
What do you guys think? Are we heading for a Samsung dictatorship in the Android world? And if so, would that be a good or a bad thing? Can Sammy make even more money from Android-based smartphones on a quarterly basis?