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Analyst: Samsung Galaxy S4 shipments ahead of estimates

Posted: , by Alan F.

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Analyst: Samsung Galaxy S4 shipments ahead of estimates
Bernstein Research analyst Mark Newman put out a note to his clients earlier this week maintaining his 'Outperform' rating on Samsung's stock. Newman notes that while the Samsung Galaxy S4 has a lower gross margin than the Samsung Galaxy S III, the operating margins between the two phones are roughly the same. How can this be? It's because the newer model eats more home-cookin' than its predecessor. In other words, more parts in the newer flagship phone come directly from Samsung.

Newman's math reveals that while 64% of the Samsung Galaxy S III used Samsung parts, 68% of the Samsung Galaxy S4's parts come directly from the Korean manufacturer. Those extra percentage points represent money flowing to Samsung's bottom line. That should more than make up for the 2% difference in gross margin between last year's model (48%) and the soon to launch new model of the phone (46%). That calculation is based on an average selling price of $520 for both handsets.

"We estimate that, while 53% of Galaxy S3 BOM cost was internal, 58% of Galaxy S4 BOM costs should now flow through Display/Semis (Memory & S.LSI). We estimate that, while 64% of Galaxy S3 BOM cost was within the Samsung Group (i.e. SEMCO, Samsung SDI, etc.), 68% of Galaxy S4 BOM costs should now flow through the Samsung Group. Additional profits to Samsung group entities should benefit Samsung Electronics in the form of increased equity income."-Mark Newman, Bernstein Research

Newman also points out that with 10 million units of the Samsung Galaxy S4 being produced each month, the OEM is churning out more phones monthly than Bernstein had estimated. Overall, the analyst says that "We believe the Galaxy S4 positions Samsung Electronics for continued strong earnings growth this year."

source: Barron's via AndroidCentral

49 Comments
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posted on 05 Apr 2013, 15:00 42

1. MartianMe (unregistered)


Nothing new here....we all know that samsung is going to win no matter what.

posted on 05 Apr 2013, 15:08 16

4. bojan (Posts: 188; Member since: 06 Oct 2012)


fanboy garbage words

posted on 05 Apr 2013, 15:26 32

6. Aeires (unregistered)


Not really. Samsung is one, if not the biggest electronic component manufacturer. It's all about volume.

posted on 05 Apr 2013, 15:32 5

8. lovenyc8 (Posts: 164; Member since: 13 Mar 2013)


typical plastic fanboy.

posted on 05 Apr 2013, 15:45 35

9. SleepingOz (Posts: 2475; Member since: 22 Oct 2011)


bojan and lovenyc8, two butthurt HTC fanboys doing their daily Samsung's articles trolling job.
The GSIV has already won the battle in many comparisons. Now, let the sales speak for themselves. =]

Oh btw, you two need to get a life!

posted on 05 Apr 2013, 17:49 13

19. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Why the hate?
Its still Android!

I love both the S4 Htc One™
Why not own both?

posted on 05 Apr 2013, 18:18

23. nobelset (Posts: 265; Member since: 17 Oct 2012)


O.O Dufaq, what/who are you and what did you do to the troll-TROLL?

posted on 05 Apr 2013, 18:36

26. evarod48 (Posts: 130; Member since: 30 Oct 2012)


i completely agree

posted on 05 Apr 2013, 19:17 4

28. andu.florea (Posts: 2; Member since: 05 Apr 2013)


Because we don't want to throw money out the window...

Why not 2-3 cars, 2-3 houses and 2 wifes(i like blondes and redheads)

posted on 05 Apr 2013, 19:32 1

31. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


We would all love that™

posted on 05 Apr 2013, 18:41 1

27. Aeires (unregistered)


Yeah, because there's a ton of that on my LG Nexus 4.

idiot

posted on 05 Apr 2013, 20:31

36. pwnarena (Posts: 718; Member since: 15 Feb 2013)


no, it's intel. samsung is second. qualcom 3rd.

posted on 05 Apr 2013, 23:34 7

38. taikucing (unregistered)


Ummm, he said that samsung is the one, not the biggest. Perhaps it's true because Samsung has many businesses. Not only electronics, but also heavy industries. Have you heard about Samsung excavators, bulldozers or ships?
Meanwhile, does intel make TVs, LCDs, phones, tablets, laptops, air conditioners, washing machines, printers, blue ray players, cameras, home theaters, microwave, broadband equiments for telco operators, medical equipments like Samsung does?
Don't be wrong, I'm not a Samsung fanboy. But I tell the truth.

posted on 05 Apr 2013, 23:46 6

39. taikucing (unregistered)


ooops, I forget that Samsung has semiconductor industries too that makes SSDs, RAMs, CPUs like Intel does. What's else? Yes, Hard drive, eventhough it belongs to seagate now. Samsung is like Intel + Foxconn + Fuji Heavy Industries + Sharp + etc..
Don't be wrong.. I'm still not a Samsung fanboy. I choose the best when buying a phone, my formula of choosing a phone is price/performance & price/features & price/hardwares ratio

posted on 06 Apr 2013, 08:04 1

44. procol (Posts: 16; Member since: 28 Feb 2013)


I disagree. In semiconductor sector, it's true what you said. Even though semiconductors would take large proportion of components industry, they are not all the components out there. Display, battery, camera lenses and the other various components exist. I'm not sure Samsung is the biggest component manufacturer or not. But it's highly likely. Their market shares on the components they manufacture usually among top 5, not to mention of numerous no.1 positions.

posted on 06 Apr 2013, 11:25

46. moroninc (Posts: 162; Member since: 14 Jul 2012)


Its true when u manufacture the parts yourselves, you control everything even the production rates. HTC hit a snag despite getting a head start.. Samsung once gets ahead (official release to market) will leave everyone in the dust.. just like the GS3 did to the awesome HTC One X

posted on 05 Apr 2013, 18:28 3

24. darkkjedii (Posts: 9280; Member since: 05 Feb 2011)


What exactly are they gonna when? The fanboy stuff is so tired man...please tell us what they'll win.

posted on 05 Apr 2013, 19:23 1

29. iushnt (Posts: 467; Member since: 06 Feb 2013)


I agree,

posted on 07 Apr 2013, 06:02

51. Trex95 (Posts: 520; Member since: 03 Mar 2013)


Don't be so sure.

posted on 05 Apr 2013, 15:01 12

2. KashAli (Posts: 102; Member since: 01 Apr 2013)


Please no-body buy smartphone above £500 (although £500 is quiet a-lot) these companies are taking advantages now. :@

posted on 05 Apr 2013, 16:44 2

13. mdroid (Posts: 18; Member since: 15 Mar 2013)


truly said mr. CashAli.

posted on 06 Apr 2013, 15:47

48. KashAli (Posts: 102; Member since: 01 Apr 2013)


lmao @mdroid ! n Apple really messed the smartphone market :@ these companies are being too greedy now :@ This Has To Stop.

posted on 05 Apr 2013, 16:58 4

16. torr310 (Posts: 306; Member since: 27 Oct 2011)


Apple is the first company who sets phone at that high price.

posted on 06 Apr 2013, 08:20 1

45. bucky (Posts: 1222; Member since: 30 Sep 2009)


U weren't old enough to care when the htc windows phones came out I guess....

posted on 05 Apr 2013, 15:03 5

3. osmaankhaan (unregistered)


Just using the formula of success which is best technology into the palm of a hand

posted on 05 Apr 2013, 15:15

5. kaliil10 (Posts: 144; Member since: 16 May 2012)


i will buy any Nokia Smartphone even if its €1000.

posted on 05 Apr 2013, 15:31 1

7. osmaankhaan (unregistered)


first buy any Nokia smartphone (if they really make one) which is already available or else the company will get closed due to bankruptcy ;-)

posted on 05 Apr 2013, 17:55 5

20. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Well if had
16MP ExmorR sensors with quarter lens
Stainles steel and Sapphire glass
64GB
500 PPI SLCD3 SAMOLED+
3500MAH Battery
4x PVR554 GPU
EXYNOS 5450 A15x6 CPU
3GB RAM

Then yes its a $1000 device™
®

posted on 05 Apr 2013, 19:53 4

32. Berzerk000 (Posts: 3656; Member since: 26 Jun 2011)


No no no, TROLL, you need to re-think some of that.

Exynos 5 Dodeca - 12 core CPU 6x A15 @ 2.5 GHz and 6x A7 cores @ 1.4 GHz

6 core PowerVR Rogue GPU @ 600 MHz

4500 mAh battery

4 GB RAM

When it comes to pure speculation, go big or go home.

posted on 07 Apr 2013, 07:14

52. Abiyouth (Posts: 3; Member since: 02 Apr 2013)


Lol I have to agree with your last sentence
" When it comes to pure speculation, go big or go home. "

posted on 05 Apr 2013, 19:24 1

30. taikucing (unregistered)


Then buy nokia 6130.

posted on 06 Apr 2013, 15:49

49. KashAli (Posts: 102; Member since: 01 Apr 2013)


Is your dad football player? However not mine.

posted on 05 Apr 2013, 16:02 8

11. darkkjedii (Posts: 9280; Member since: 05 Feb 2011)


Hurry up AT&T. I'm waiting.

posted on 05 Apr 2013, 17:58 3

22. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Me2, but not for AT&T, but to buy the Sim-Free Exynos version™

posted on 05 Apr 2013, 18:33 3

25. darkkjedii (Posts: 9280; Member since: 05 Feb 2011)


Sounds nice Troll but I had a very bad experience with buying unlocked, non carrier branded devices. I tried the original Htc hero from cellular superstore here in Vegas, it only worked on edge, wouldn't email or text pics/vids which is a deal breaker for me, and didn't receive any updates at all. Cost me $700, I sold it for $300...never again man. I'll just eat the contract bro.

posted on 05 Apr 2013, 19:58 2

33. Berzerk000 (Posts: 3656; Member since: 26 Jun 2011)


I'm waiting for T-Mobile to get it in store for me to try it out, and if I like it I'll buy the unlocked Exynos variant. I already know the Exynos 5410 works with T-Mobile's HSPA+ 42 and LTE, so that won't be a problem.

Then I'm going to sell it later in the year for whatever Motorola is cooking. Who knows, maybe Apple will pop out of nowhere and come out with something great.

posted on 05 Apr 2013, 20:12 1

35. darkkjedii (Posts: 9280; Member since: 05 Feb 2011)


Sounds look a good plan bro

posted on 05 Apr 2013, 16:34 3

12. Taters (Posts: 2374; Member since: 28 Jan 2013)


I wonder how much it would cost smaller manufacturers like HTC and LG to manufacture it.

posted on 05 Apr 2013, 16:57

14. Rodney13 (Posts: 2; Member since: 02 Apr 2013)


Announce the pre orders for sprint please.

posted on 05 Apr 2013, 16:58 8

15. darac (Posts: 2156; Member since: 17 Oct 2011)


Note to Samsung haters:
Samsung Galaxy S4 is NOT made in China, unlike all other flagship phones

posted on 05 Apr 2013, 16:59 4

17. torr310 (Posts: 306; Member since: 27 Oct 2011)


Do you know HTC is made in Taiwan?

posted on 05 Apr 2013, 19:59 1

34. ˇಠ_ಠˇ (Posts: 40; Member since: 29 Aug 2012)


The LG Optimus G Pro is made in Korea.

posted on 06 Apr 2013, 00:48 1

42. xperiaDROID (Posts: 4821; Member since: 08 Mar 2013)


And the Sony Xperia Z is made in Japan with a "MADE IN CHINA" word at the bottom.

posted on 05 Apr 2013, 21:03 2

37. Nephylim (Posts: 131; Member since: 04 Apr 2013)


good work sammy !!!

posted on 06 Apr 2013, 00:35 2

40. straywish (Posts: 13; Member since: 03 Dec 2012)


Samsung will win this is a fact........ I want it to win coz i hate apple :)

posted on 06 Apr 2013, 00:46

41. xperiaDROID (Posts: 4821; Member since: 08 Mar 2013)


Analysts do have their IMAGINATIONS.........

By the way, Samsung is doing very well, GOOD LUCK SAMSUNG!

posted on 06 Apr 2013, 05:53

43. andyw (Posts: 1; Member since: 06 Apr 2013)


Waiting for AT & T with Samsung...
Samsung Galaxy

posted on 06 Apr 2013, 15:51

50. KashAli (Posts: 102; Member since: 01 Apr 2013)


Apple really messed the smartphone market :@ these companies are being too greedy now :@ This Has To Stop.

posted on 08 Apr 2013, 06:31

53. iluvsmartphonexpdx (Posts: 48; Member since: 26 Mar 2013)


Samsung is gonna win again...

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