Analyst: Samsung Galaxy S4 shipments ahead of estimates

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.


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

Related phones

Galaxy S4
  • Display 5.0" 1080 x 1920 pixels
  • Camera 13 MP / 2 MP front
  • Processor Qualcomm Snapdragon 600, Quad-core, 1900 MHz
  • Storage 64 GB + microSDXC
  • Battery 2600 mAh(17h 3G talk time)

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49 Comments

1. MartianMe unregistered

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

4. bojan

Posts: 188; Member since: Oct 06, 2012

fanboy garbage words

6. Aeires unregistered

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

8. lovenyc8

Posts: 164; Member since: Mar 13, 2013

typical plastic fanboy.

9. SleepingOz unregistered

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!

19. TROLL

Posts: 4851; Member since: Apr 13, 2012

Why the hate? Its still Android! I love both the S4 Htc One™ Why not own both?

23. nobelset

Posts: 270; Member since: Oct 17, 2012

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

26. evarod48

Posts: 154; Member since: Oct 30, 2012

i completely agree

28. andu.florea

Posts: 2; Member since: Apr 05, 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)

31. TROLL

Posts: 4851; Member since: Apr 13, 2012

We would all love that™

27. Aeires unregistered

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

36. pwnarena

Posts: 1129; Member since: Feb 15, 2013

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

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.

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

44. procol

Posts: 16; Member since: Feb 28, 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.

46. moroninc

Posts: 193; Member since: Jul 14, 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

24. darkkjedii

Posts: 31538; Member since: Feb 05, 2011

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

29. iushnt

Posts: 3147; Member since: Feb 06, 2013

I agree,

51. Trex95

Posts: 2383; Member since: Mar 03, 2013

Don't be so sure.

2. KashAli

Posts: 105; Member since: Apr 01, 2013

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

13. mdroid

Posts: 48; Member since: Mar 15, 2013

truly said mr. CashAli.

48. KashAli

Posts: 105; Member since: Apr 01, 2013

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

16. torr310

Posts: 1692; Member since: Oct 27, 2011

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

45. bucky

Posts: 3794; Member since: Sep 30, 2009

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

3. osmaankhaan unregistered

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

5. kaliil10

Posts: 146; Member since: May 16, 2012

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

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 ;-)

20. TROLL

Posts: 4851; Member since: Apr 13, 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™ ®

32. Berzerk000

Posts: 4275; Member since: Jun 26, 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.

52. Abiyouth

Posts: 3; Member since: Apr 02, 2013

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

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