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Samsung Posts Record $7.4 Billion Profit Thanks to Galaxy

By - Source: Samsung (PDF) | B 29 comments

Electronics giant singled out strong sales of flagship Galaxy S3 smartphone.

As expected, Samsung has announced record profits of $7.4 billion thanks to sales stemming from its flagship Galaxy smartphone lineup.

It recorded a profit of $7.4 billion during the third quarter, attributing the earnings to its Galaxy smartphones and tablets, which have both made up for poor chip demand.

The South Korean electronics giant said its third-quarter operating profit increased by 91 percent, while revenue for the quarter that ended on September 30 stood at $47.5 billion, representing a 26 percent increase over the same period in 2011.

The firm's Mobile Communications division is responsible for half of that figure by accounting for $23.9 billion in revenue. Samsung specifically referred to the Galaxy S3 as one of the products that considerably raised profit margins. The smartphone became one of the best selling Android handsets of all time when it sold 20 million units in its first 100 days on sale.

While Samsung didn't divulge information relating to specific smartphone sales figures, analysts believe it sold around 60 million smartphones during the quarter. Comparatively, Apple sold 26.9 million iPhones during the same period.

Elsewhere, the company's display panel business enjoyed a return to profitability with operating profit equaling $1 billion, a 19 percent increase over the same period in 2011. However, profit deriving from Samsung's chip business decreased by 28 percent to 1.15 trillion won due to weak demand for DRAM chips.

"The business environment remained difficult with global economic uncertainties persisting amid the fiscal concerns in the U.S. and Europe," Robert Yi, Samsung's chief of Investor Relations said. "However, we continued to break our quarterly profit records."

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  • 22 Hide
    keither5150 , October 26, 2012 11:06 PM
    BTW, wife has galaxy S2 and I will be getting a note 2 shortly.... great phones.
  • 20 Hide
    keither5150 , October 26, 2012 11:06 PM
    You mean thanks to all of Apple's advertising.... i mean lawsuits.
    It's like telling your teenage daughter to stay away from the bad boy.
    Doesn't work very well. Samsung should really thank Apple.
Other Comments
  • 20 Hide
    keither5150 , October 26, 2012 11:06 PM
    You mean thanks to all of Apple's advertising.... i mean lawsuits.
    It's like telling your teenage daughter to stay away from the bad boy.
    Doesn't work very well. Samsung should really thank Apple.
  • 22 Hide
    keither5150 , October 26, 2012 11:06 PM
    BTW, wife has galaxy S2 and I will be getting a note 2 shortly.... great phones.
  • 1 Hide
    zoemayne , October 27, 2012 12:17 AM
    good to see some competition/wealth being spread
  • 5 Hide
    halcyon , October 27, 2012 12:18 AM
    I wonder how the Note 2's screen compares with S3's lovely screen.
  • 4 Hide
    youssef 2010 , October 27, 2012 12:28 AM
    Let's see how the Note 2 affects samsung's profits
  • -2 Hide
    ivanto , October 27, 2012 1:10 AM
    Good for Samsung and the consumers to have real competition on the market.
    -IvanTO
  • 7 Hide
    rpgplayer , October 27, 2012 1:37 AM
    "...analysts believe it sold around 60 million smartphones during the quarter..." Just think how much profit they would be showing if they charged as much for their phones as Apple does.
  • 2 Hide
    reprotected , October 27, 2012 3:13 AM
    rpgplayer"...analysts believe it sold around 60 million smartphones during the quarter..." Just think how much profit they would be showing if they charged as much for their phones as Apple does.

    They charged the same for the Galaxy S2 and S3, minus the extra memory.
  • 1 Hide
    applerocks , October 27, 2012 3:25 AM
    rpgplayer"...analysts believe it sold around 60 million smartphones during the quarter..." Just think how much profit they would be showing if they charged as much for their phones as Apple does.


    Probably a whole lot less because they wouldn't be able to command a premium like that. People would stop buying them. If they thought they could charge that much, Im sure they would. Samsung isnt trying to do everyone a favor by keeping phone costs down by reducing their profit margins.
  • -2 Hide
    peterkidd , October 27, 2012 3:33 AM
    You mean $6.4 billion.
  • 9 Hide
    fuzzion , October 27, 2012 3:59 AM
    rpgplayer"...analysts believe it sold around 60 million smartphones during the quarter..." Just think how much profit they would be showing if they charged as much for their phones as Apple does.


    Android users are independent thinkers. They are not iSheep so that strategy would not work so well on them.
  • 1 Hide
    livingthedream , October 27, 2012 5:30 AM
    It recorded a profit of $7.4 billion during the third quarter

    That's a lot of nickels and trucks ;) 
  • 6 Hide
    phatboe , October 27, 2012 5:54 AM
    Now how about Samsung Thank their customers with a Jelly Bean Update
  • -2 Hide
    ivanto , October 27, 2012 3:04 PM
    rpgplayer"...analysts believe it sold around 60 million smartphones during the quarter..." Just think how much profit they would be showing if they charged as much for their phones as Apple does.


    Rogers Canada - side by side comparison:

    Samsung Galaxy S III™ 16GB $159.99 on a 3y contract
    iPhone 5 16GB Black $179.00 on a 3y contract

    $20 is hardly a big difference.
    -IvanTO
  • 1 Hide
    nuvon , October 27, 2012 5:01 PM
    iHaters are just as hard core Android fan as the Apple fan; Reading iHaters comments, you know they are just as irrational as the true Apple fan boy, no difference. The funniest thing is the iHaters think they are smarter than everyone else.
  • 5 Hide
    willard , October 27, 2012 5:25 PM
    ivantoRogers Canada - side by side comparison:Samsung Galaxy S III™ 16GB $159.99 on a 3y contractiPhone 5 16GB Black $179.00 on a 3y contract$20 is hardly a big difference. -IvanTO

    What you pay your provider for the phone is not what the phone costs. That's the whole "subsidized" thing you hear about, the carriers eat most of the cost to get you into a lucrative contract.

    You have to compare off-contract prices, not on-contract. The top of the line iPhone is $849 off contract (fun fact, it costs $238 to build, including manufacturing costs) while the GS3 can be had for $599, less if you catch it on sale (I've seen it as low as $390). I'd say that's a pretty goddamn big difference.

    Apple's phones are the most expensive with the biggest margins, and have been since the beginning. Why else do you think they make so much more money than the other manufacturers while selling a fraction of the devices?
  • 4 Hide
    willard , October 27, 2012 5:27 PM
    nuvoniHaters are just as hard core Android fan as the Apple fan; Reading iHaters comments, you know they are just as irrational as the true Apple fan boy, no difference. The funniest thing is the iHaters think they are smarter than everyone else.

    Fanboys in general have this behavior. It's been shown that fanboyism activates the same part of the brain as religion, which explains why you see so many similar behaviors between extreme fanboys and religious nutjobs. Deifying Steve Jobs (I'd mention an Android equivalent, but only the macolytes have gone this far), refusing to accept that your chosen platform is not perfect, viciously attacking those who have different opinions, etc. etc.

    Is there anything religion can't fuck up for everyone?
  • 1 Hide
    Old_Fogie_Late_Bloomer , October 27, 2012 6:13 PM
    halcyonI wonder how the Note 2's screen compares with S3's lovely screen.
    youssef 2010Let's see how the Note 2 affects samsung's profits

    I can tell you it'll be contributing at least one phone's worth of revenue, that's for sure. I was on the fence about what I was going to upgrade to...SIII, Note 2, 920, 8X...and then I tried a Note 2 yesterday, and settled that question. The Note 2 is absolutely going to be my next phone. Beautiful huge screen, surprisingly good handwriting recognition...it's just about perfect (for me, at least).
  • 1 Hide
    willard , October 27, 2012 6:49 PM
    I'm expecting the Note 2 to be the surprise hit of the year, much like the first Note was. Samsung proved there was a huge market for these stupidly huge phones, and they're the only ones in the game for now.

    They're going to make bank until they get some competition up there.
  • 0 Hide
    jrodil , October 27, 2012 8:03 PM
    willardI'm expecting the Note 2 to be the surprise hit of the year, much like the first Note was. Samsung proved there was a huge market for these stupidly huge phones, and they're the only ones in the game for now. They're going to make bank until they get some competition up there.


    Well LG is trying... miserably I believe haha!
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