Samsung estimates $40 billion sales in Q1 2012

Samsung estimates $40 billion sales in Q1 2012

Summary: Samsung is likely heading towards a record quarter as it expects to rake in nearly $40 billion in sales for a period of three months alone, backed up by its supply chain profits.


Samsung estimates its operating profit nearly doubled in Q1 2012 between January and March from a year ago, as the company rides a high on boosted sales of its flagship Galaxy smartphones, including the part-tablet part-smartphone, the Galaxy Note.

The Korean giant will release its full quarterly results on April 27, with an estimated operating profit of $5.15 billion, with sales estimated to be just shy of $40 billion.

While Apple may be more than three-times the size of Samsung, with the Cupertino-based giant valued at over $580 billion versus that of $190 billion for Samsung, it maintains its marketshare position as one of Apple's greatest rivals.

Just this week, comScore's latest figures show Samsung leads the top mobile OEMs board with a steady market share lead at 25.6 percent over Apple's 13.5 percent.

Samsung is expected to have shipped around 44 million smartphones, up from 25 percent on the last quarter. The Note, a hybrid model between a tablet and a smartphone --- nearly doubling the iPhone in dimensions --- have already topped 5 million, adding a valuable addition to the company's revenue stream.

Pushing out rivals such as BlackBerry maker Research in Motion, Nokia, and HTC, Samsung remains the market leader in Android-running smartphones, doubling the success between the Korean giant and Google.

Despite the ongoing patent wars and the intense competition, Apple remains one of Samsung's major suppliers of components for its own iPhone and iPad.

While oversupply issues market have dropped worldwide prices in memory chips, smartphone makers are also weathering the storm the earthquake and tsunami in Tokyo in 2010, and bankruptcy of Japan's Elpida Memory have pushed competitors towards Samsung as a vital source of components and parts.

With the upcoming release of the new Galaxy S from Samsung, and the expected announcement of Apple's iPhone 5 looming in the coming weeks and months, Samsung may have to lower its smartphone prices which could impact its profit.

Image credit: Sarah Tew/CNET.


Topics: Samsung, Enterprise Software, Hardware, Mobility, Smartphones

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  • Isn't this just Samsung Electronics?

    Samsung owns something like 50 companies, some how I don't think they report all of thier sales, profits, etc for all those companies.
    • Yes, just Samsung Electronics.

      Samsung Group has 59 unlisted companies and 19 listed companies.
      • Non-electronics business would add another $15 billion sales per quarter

        But those business are separate and do not report unified results. So this article is inaccurate with the name of the company, which is "Samsung Electronics" (this inaccuracy would be irrelevant if the article would discuss only products, rather than financial results, which caused confusion).

        Zack reports that "Samsung is likely heading towards a record quarter", however, this is misreporting since this quarter is not going to be record one -- Samsung Electronics has set its record in Q4 with $42 billion sales.

        Also, with comScore reference author misleads readers into believing that Samsung's smartphone sales are bigger than Apple's, while it is not such lately. comScore only reports current "installed/subscribers base", which is totally different from how many smartphones were sold in latest quarters. In Q4, Apple had 43% of smartphone market and was by far #1 supplier.

        Lastly, Samsung stopped reporting their smartphone sales since 2011Q2. All information about later sales (such as "expected" 44 million smartphones for 2012Q1) is pure guessing by so-called "analysts". Those people are [b]known for their accuracy[/b] -- in 2010, for example, they had prognosis that iPad will sell 20 million units in 2011.
      • I know the fact that Samsung

        sells more phones that Apple bothers you, DeRSSS, but lets not turn this into an "Apple spin fest", shall we?

        When Apple talks sales, they are talking about sales to their stores and resellers, [b]not[/b] activations.

        They used to report activations, but once they leveled off, and then Samsung surpassed them, they quickly started reporting sales, as in slaes to resellers, as they could easilly track how many people actually purchased their products throug activations.

        So all data points to the fact that Samsung sells more phones then Apple.
        William Farrel
      • What part of "37m iPhones, 32m Samsung smartphones" (Q4) tells you that ...

        @William Farrel ... Apple sells less smartphones than Samsung?

        I know the fact that Apple sells more phones that Samsung bothers you, William Farrel, but lets not turn this into an "Samsung spin fest", shall we?

        When Apple talks sales, they are not talking about sales to their stores, because stores are not separate entity. Via Apple Stores and site Apple accounts direct sales.
      • What is this new math your using, DeRSSS?

        It sounds pretty interesting.

        Samsung phones account for 25.6% of the phones, while Apple phones account for 13.5. So how could Apple sell more phones but have less of them out there? You might have to explain that to me.

        I take it by your posting sales from [b]one[/b] recent quarter, using this math of yours allows you to go back and change previous quarter sales figures in the past, that then reverses the previous sales of Samsung phones, transfering them to Apple's sales.

        So if I go to bed tonight with a Samsung phone, will I wake up in the morning to find it was magically tranformed into an iPhone?

        That's what your math is telling me will happen.
        William Farrel
      • What part of ...

        @William Farrel: ... "comScore only reports current "installed/subscribers base", which is totally different from how many smartphones were sold in latest quarters" makes you think that I am using wrong mathematics?

        In the past, Samsung might have sold any number of smartphones and the current installed base mixes into those 25/13 shares. But this has nothing to do with how many smartphones are sold in the latest quarters. Samsung went to the sharp decline in terms of market share of new sales, and Apple is #1.
  • Impressive performance.

    The cellphone market is shaing up to be an Apple/Samsung game. More and more HTC looks to have lost their mojo. Bummer since HTC seems pretty well run but with their current quarter showing the lowest profit in years is not encouraging.
  • Stay on topic

    "While Apple may be more than three-times the size of Samsung, with the Cupertino-based giant valued at over $580 billion versus that of $190 billion for Samsung, it maintains its marketshare position as one of Apple???s greatest rivals."

    Was that really necessary? In this Samsung article?
  • 40 Billion total sales account for much more than android powered phones.

    Sure samsungs phone market is one of it's main revenue stake holds, they are also a leader in HDTVs and home electronics such as Refrigerators, Air Conditioners, Washers, Driers, etc ... They also are a leader in home entertainment devices such as Blu-ray players, home theater units and speakers, etc...

    They also have indusrtial and commercial producs as well

    Everything from these markets all add up to 40 billion. Yet apple can make more money off Mac, Ipod, iphone, and ipad. 4 product classes versus hundreds. It's insane.
  • Samsung has become....

    ... the 21st century version of Sony. They have a huge portfolio of electronic consumer products, OEM parts manufacturing, and a global manufacturing/distribution presence.

    In many ways, comparing them to apple is a disservice to them - Apple has one achilles heel (and there are ~some~ rumors of this issue already): a limited portfolio. A couple of phones, half a dozen computers, and a few mp3 players. Itunes is starting to turn off artists and labels who are sick of having to pay 30% just to be listed. Something's gonna give. I predict major changes within the next 3-4 years.