Everyone knows that Samsung is reeling in the dough. After all, they are the top smartphone manufacturer in the mobile industry, and it’s been that way for a while. Samsung Electronics just announced a profit of 8.78 trillion won for the first quarter of 2013, which is roughly $7.9 billion.
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Total revenue for the company was announced at 52.87 trillion won, or $47.6 billion. This resulted in a net profit of 7.15 trillion won, or $6.45 billion. To translate, that’s a f***ton of cash. If you own stock in Samsung right now, you’re probably one very happy camper.
It will be fascinating to see how the upcoming launch of Samsung’s latest flagship adds to that revenue stream. Of course, we won’t know for sure how Samsung’s profits will be affected by the launch until after they release a financial report for Q2 2013, which is some time away.
Even though the figures are still good, Samsung experienced a 6 percent decline in revenue since the end of last quarter. Samsung officials believe wholeheartedly that the slight drop is just because of the current economy. They also cited poor TV and home appliance sales to back up their claims.
Of course, up until recently Samsung has done pretty well in the mid to low end smartphone market. It’s possible they will continue to do well on all fronts, but rivals have begun to release a larger selection of budget handsets in order to compete. Ultimately, Samsung is going to meet with more resistance even when it comes to the budget market.
As for the boost in revenue, Samsung directly equates it to booming smartphone sales combined with a cutback in marketing costs. Seeing as every 3 out of 10 smartphones sold last quarter was Samsung branded, that’s a fairly accurate assumption. Even more so, when you consider the fact that Samsung currently retains 30% of the smartphone market share.
Clearly, Samsung is not going anywhere anytime soon. The coming launch of the Galaxy S4 is just going to make it even more difficult for competitors to take that number one spot away.
Are you going to contribute to Samsung’s profit this quarter? More specifically, are you getting a Galaxy S4, or do you already have one pre-ordered?