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Samsung tops Apple as most profitable smartphone manufacturer

Posted: , by Alan F.

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Samsung tops Apple as most profitable smartphone manufacturer
For the last couple of years, Apple has been the most profitable smartphone manufacturer. But that has changed and after Tuesday's earnings report from the Cupertino based OEM, it is now Samsung that is the most profitable of the smartphone manufacturers. Apple's report yesterday showed that the company sold 31.2 million units of the Apple iPhone for its fiscal third quarter, accounting for part of the company's profit of $6.9 billion. Gross margin, at 36.9% of sales, was down from the prior year's 42.8%.

On the other hand, Korean based Samsung estimated that it sold 71 million smartphones in its latest quarter which helped Sammy produce $8.33 billion in profits on $50 billion in revenue. Of course, part of the difference between the two companies when it comes to smartphone sales is the large number of different smartphone models that Samsung produces compared to the three made by Apple. These figures are based on a forecast made by the tech titan earlier this month. The official numbers are expected to be released on Friday.

With Apple rumored to be adding a low-cost version for the emerging markets, and a new full-price version due by the end of the year, we could see Apple put on more of a challenge to its main rival by the time the company reports its 2014 fiscal second quarter figures.

source: Apple via SamMobile

52 Comments
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posted on 24 Jul 2013, 22:08 18

1. Googler (Posts: 813; Member since: 10 Jun 2013)


Volume, producing their own components, and some great marketing to top if off, no doubt this was going to happen at some point.

posted on 25 Jul 2013, 00:24 5

16. Mxyzptlk (Posts: 3563; Member since: 21 Apr 2012)


In terms of profit per device Apple has them beat simply because Samsung releases so many different devices. Obviously this will bloat the figures and skew them some so it's kind of misleading.

posted on 25 Jul 2013, 00:49 13

19. Commentator (Posts: 2425; Member since: 16 Aug 2011)


It's not misleading at all. Samsung made more in profits than Apple selling smartphones, business tactics such as how many different models each produced notwithstanding.

posted on 25 Jul 2013, 01:08

22. Zeus.k (unregistered)


Exactly. Btw this was inevitable and I can only think of Samsung widening the gap I mean they are still left with note III.

posted on 25 Jul 2013, 01:49 6

26. someones4 (Posts: 619; Member since: 16 Sep 2012)


if Apple ain't happy, they are very welcome to release more devices.

posted on 25 Jul 2013, 06:56 1

33. Googler (Posts: 813; Member since: 10 Jun 2013)


This! Only Apple is to blame for how many phones/devices they release.

posted on 25 Jul 2013, 07:17

36. number29 (Posts: 185; Member since: 25 Jan 2013)


I'm sure Apple are probably very happy with the billions they already make. And making more devices doesn't automatically translate into making more money either.

posted on 25 Jul 2013, 03:27 2

28. Mittal (Posts: 427; Member since: 14 Dec 2011)


hmmm good strategy! keep talking staunch nonsense in favour of an argument(Apple, in yur case) and u will be famous (Infamous) in no time. getting plenty of shunning replies and curses. but who cares!! u are being noticed.. nice going

posted on 25 Jul 2013, 03:55 3

30. TylerGrunter (Posts: 924; Member since: 16 Feb 2012)


I heard you saying:
1) Apple is the company that makes most of the revenue, then Samsung started making more revenew
Then....
2) Apple is the company making the most profit, then Samsung is making more profit.
And now the important one is the profit per device? Sorry but then is VERTU the winner!!! Lol

posted on 25 Jul 2013, 07:20

37. number29 (Posts: 185; Member since: 25 Jan 2013)


The question is, why do you, or anyone for that matter, care? I don't care how many devices Apple makes, how many they sell, or how much money they make in the process. All I care about is that they continue to make the devices that they do.

But the reverse is also the case. Why aren't people posting repeatedly about how Samsung's profits show that they are a rip-off etc etc? It's double standards, that's why.

posted on 25 Jul 2013, 04:26 2

31. willard12 (Posts: 798; Member since: 04 Jul 2012)


Profit per device....so basically you're saying Apple charges a lot for a cheap device.

posted on 25 Jul 2013, 08:10 1

41. tedkord (Posts: 4815; Member since: 17 Jun 2009)


Profit is profit. Nothing is misleading, just disconcerting for you. You'll get over it.

posted on 25 Jul 2013, 10:28 1

47. joey_sfb (Posts: 2931; Member since: 29 Mar 2012)


idiocy of a hardcore Apple fan, they like to pay more so to brag about their handset. lol...

posted on 25 Jul 2013, 18:33 1

48. barondebxl (Posts: 102; Member since: 04 Nov 2011)


That doesn't make any sense. It doesn't matter because all the revenue goes back to the same company. The bottom line is Samsung sold more phones and made more money out of phones. period.

posted on 24 Jul 2013, 22:18

2. aryanfr1 (Posts: 53; Member since: 24 Jan 2013)


Apple has a war with army of galaxy series.But if they don't come with something new with there latest product this trend will increase

posted on 24 Jul 2013, 23:00 2

9. Shatter (Posts: 2027; Member since: 29 May 2013)


Apples stocks are about to fall and so is their user base.

posted on 24 Jul 2013, 23:52 1

14. alterecho (Posts: 1082; Member since: 23 Feb 2012)


I'm considering moving to iOS, actually, when the affordable iPhone comes out.

posted on 25 Jul 2013, 00:39

17. Mxyzptlk (Posts: 3563; Member since: 21 Apr 2012)


Their stock peaked. The same will happen to Samsung as recent articles are saying about sales of the S4 drying up.

posted on 25 Jul 2013, 06:59 1

34. Googler (Posts: 813; Member since: 10 Jun 2013)


Absolutely right, Apple's stock did peak, back in September 2012. New products, updates, more carriers, and various other techniques still haven't gotten it even close to what it was since then.

Maybe they should mold their stock pricing on your blind fanboyism? Break all kinds of records then.

posted on 25 Jul 2013, 08:12

42. tedkord (Posts: 4815; Member since: 17 Jun 2009)


The Galaxy S4 apparently outsold the iPhone 5 in Q2, with only 2 months of sales compared to the iPhone's full three months. It's sales have been fine.

posted on 24 Jul 2013, 22:29 10

3. PAPINYC (Posts: 2289; Member since: 30 Jul 2011)


How come Apples are measured in uniTs and Samsungs are measured in Smartphones?
It implies that Apples aren't Smartphones (but we already knew this).

BTW,
Apples 31.2 Million for the year? (really, their whole fiscal year??)
Samsung 71 Million in the latest quarter?

If the above is accurate then, Samsung is stomping all over them Apples!!

posted on 25 Jul 2013, 00:01

15. Birds (Posts: 991; Member since: 21 Nov 2011)


Not just Samsung Galaxy S4s, just all the devices they make.

posted on 25 Jul 2013, 00:59

21. Commentator (Posts: 2425; Member since: 16 Aug 2011)


The article says 31.2 million for Apple's fiscal third quarter.

(I'm assuming the article said "fiscal year" when you read it, and it's been changed since.)

posted on 25 Jul 2013, 07:02

35. PAPINYC (Posts: 2289; Member since: 30 Jul 2011)


Yeah, last night it did NOT say "for its fiscal third quarter," yet another horrific error on PA; this one could've left them Apples traumatized.

Oh, 31 Million vs 71 Million for the same fiscal quarter, YES, Samsung making AppleSauce!!

posted on 25 Jul 2013, 07:29

39. darkkjedii (Posts: 11463; Member since: 05 Feb 2011)


Good correction Commentator

posted on 25 Jul 2013, 07:37 1

40. PAPINYC (Posts: 2289; Member since: 30 Jul 2011)


No one called you, you troll. Commentator knows about tech' and you, for as much as you wish otherwise, DON'T (NADA - ZILCH - you add NOTHING). You just know how to interject your way into ANY post you can in hopes that someone (anyone) acknowledges your lonely existence. You only epitomiZe an iPhone user's need for constant validation. And, the only other thing you can probably do is continue to make fÜgly babies with fÜgly baby mamas'!!!

Speak when spoken to you 70% mass of water weight!!

"Good correction Commentator," you have conversations with yourself, how does it feel to be an iSchizophrenic??!

posted on 25 Jul 2013, 08:33

43. darkkjedii (Posts: 11463; Member since: 05 Feb 2011)


Lmao, bro you really gotta get some material. Your boys have stop giving big ups man. Here's a +1 for ya homie

posted on 25 Jul 2013, 08:38

45. darkkjedii (Posts: 11463; Member since: 05 Feb 2011)


Oops stopped papster

posted on 24 Jul 2013, 22:35 1

4. htc_evo_3d (Posts: 84; Member since: 11 Mar 2013)


low-cost version of Apple iPhone is going to be a super RIVAL for all mid-range smartphones. Apple is making a nice move.

In my country most of the people wants an iPhone. Since it was too costly they moved to android and wp. This low-cost iPhone will attract those people towards it

posted on 24 Jul 2013, 22:37

5. speckledapple (Posts: 879; Member since: 29 Sep 2011)


And that is when the other shoe drops.

posted on 24 Jul 2013, 22:49 4

6. Doakie (Posts: 1255; Member since: 06 May 2009)


There goes the Apple fan boys only defense. Their most profitable status... Poor Apple fan boys...

posted on 25 Jul 2013, 00:51 4

20. Commentator (Posts: 2425; Member since: 16 Aug 2011)


Along with the most apps in the App Store.

posted on 25 Jul 2013, 01:11

23. Zeus.k (unregistered)


Lol. You made my day. I'm just wondering what will they brag about now. Samsung has really done an awesome job. I wish they make nexus5.

posted on 25 Jul 2013, 07:24

38. number29 (Posts: 185; Member since: 25 Jan 2013)


Frankly I think you should ignore anyone who brags about anything. How profitable a company is, or how many devices they sell, has no bearing whatsoever on whether they make good products.

posted on 24 Jul 2013, 22:53

7. byazatt (Posts: 159; Member since: 26 Oct 2012)


since apple iPhone in many places is a status symbol, I believe the low specced lite version will piss off hippies when everyone starts 'affording ' the 'venerable 'icon

posted on 24 Jul 2013, 22:58 6

8. 1113douglas (Posts: 191; Member since: 04 Jul 2013)


Apple will never pass samsung again. Their wow is gone. Samsung is on the move, when you think abt it does apple innovate? Samsungs changes and advanced technology will continue to show in the sales. The gs4 makes the iphone look really bad.

posted on 24 Jul 2013, 23:01 7

10. 1113douglas (Posts: 191; Member since: 04 Jul 2013)


Their are now 5 models of the samsung galaxy s4 and the original galaxy s4 itself sold more than the iphone 5 worldwide. Apple is done! Face it!

posted on 24 Jul 2013, 23:08 5

11. byazatt (Posts: 159; Member since: 26 Oct 2012)


Haters call the software in galaxy flagship bloatware,but suppose it was found in the iPhone? I love tech, but I hate hypocritical fan base.

posted on 24 Jul 2013, 23:47 4

12. ilia1986 (unregistered)


iOS is the new Symbian. Good for old folks or people who like basic functionality only.

posted on 25 Jul 2013, 01:14 1

24. Zeus.k (unregistered)


I beg to differ. Symbian was way more functional than ios or wp. ios might be more fluid but it will take apple another couple of years to reach that functionality.

posted on 25 Jul 2013, 01:33 1

25. ilia1986 (unregistered)


Lol of course. I meant in terms of eventual fate. :)

posted on 25 Jul 2013, 08:37

44. darkkjedii (Posts: 11463; Member since: 05 Feb 2011)


So it's not good for people who want it, and have the money to buy it?

posted on 24 Jul 2013, 23:50 1

13. byazatt (Posts: 159; Member since: 26 Oct 2012)


hahaha, true that! new Symbian +1

posted on 25 Jul 2013, 00:45 1

18. Sondae (Posts: 190; Member since: 02 Jan 2013)


Iphone is so expensive that most cant afford to buy it plus they dont listen to there costumer they just only like to sell. Unlike samsung you can buy high to end depends on your budget.

posted on 25 Jul 2013, 03:24

27. piyath (Posts: 151; Member since: 23 Mar 2012)


Go home and sleep Apple..

posted on 25 Jul 2013, 03:28

29. itsdeepak4u2000 (Posts: 2666; Member since: 03 Nov 2012)


That's what Sammy gives choices.

posted on 25 Jul 2013, 06:33

32. XperiaFanZone (Posts: 1321; Member since: 21 Sep 2012)


Yay, now f off apple!

posted on 25 Jul 2013, 08:41

46. amilcarmz86 (Posts: 95; Member since: 09 Jul 2013)


the iphone is an overrated and overpriced phone....

posted on 26 Jul 2013, 05:31

50. itreday (Posts: 68; Member since: 24 May 2012)


Apple is priced that way because they actually use quality materials unlike Samsung. Samsung is the one that's over priced.

posted on 26 Jul 2013, 07:14

51. Googler (Posts: 813; Member since: 10 Jun 2013)


They are all overpriced, especially Apple. Apple pays less than $7 for 16 gigs of memory but charges the consumer $100 for it. Please, stop acting like Apple is innocent of overpricing their equipment.

posted on 26 Jul 2013, 05:30

49. itreday (Posts: 68; Member since: 24 May 2012)


Of coarse they profit more. They're over pricing inferior (Plastic) products.

posted on 27 Jul 2013, 19:02

52. PeteY48 (Posts: 1; Member since: 27 Jul 2013)


Strategic Analytics is simply wrong. For some reason they compared the profit of Samsung’s IM division which includes all of Samsung’s phones, TABLETS and COMPUTERs, to half of Apple’s profits. Why? OK I give, I don’t know. It makes no logical sense.

It appears that if you compare Samsung’s operating income for the IM division versus Apple’s operating income (similar product lines for both companies) that Samsung made about 61% of Apple. So, no, Samsung is not the “World’s most profitable phone maker.” Especially since no one knows what Samsung makes on their phones… and that includes Strategic Analytics.

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