Samsung posts record operating profit of $7.4 billion in Q3, will set aside a billion to pay Apple

Samsung posts record operating profit of $7.4 billion in Q3, will set aside a billion to pay Apple
Samsung posted an outstanding Q3 report, recording his highest operating profit so far of $7.4 billion, a 91% increase year-on-year. For comparison, Apple's number was $8.2 billion, and the two companies have never been that close.

Of course, the last quarter of Apple's fiscal year is not its strongest one, as usually a new iPhone appears at the end of it, and Samsung releases its flagship a few months prior, but it is still a remarkable achievement on Samsung's part.

The Koreans sold 20 million Galaxy S III units alone, against 26.9 iPhones of all types for Apple. Overall IDC estimates are that Samsung has sold 56.3 million smartphones in the quarter, widening the lead before Apple's 15%, with 31.3% of the global smartphone market, while Nokia has fallen out of the top 5.

Samsung posts record operating profit of $7.4 billion in Q3, will set aside a billion to pay Apple
The profits from the telecom division alone, which houses its phone and tablet sales, were $5.12 billion, and represent 69% of the company's take-home pay, that's how important it mobile business is. If you spread the profit margin across the division, however, it is close to 19%, next to Apple's 40%+ margins, which is where the difference in profits comes from, despite double the units sold.

The company said it will set aside $1 billion if it loses the appeal in the US lawsuit against Apple this quarter, to pay the damages that the patent infringement jury decided it is liable for. "The amount of provisioning will be fixed according to U.S. court ruling, and the costs will be set aside this quarter only if there's a ruling within the current quarter," said Robert Yi, head of Samsung investor relations, on a conference call with analysts. With north of $7 billion made last quarter alone, we are not very worried this will rock its boat.


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20 Comments

1. ramonleonjr62

Posts: 48; Member since: Oct 17, 2012

that is good news for samsung

10. Topcat488

Posts: 1411; Member since: Sep 29, 2012

Yeah, the good news is that Samsung is selling the best dope in this neighborhood. Almost everybody wants their smartphones man... People ain't crazy to by stuff if the dealer won't take care of their product, money is hard to come by... To bad Nokia went with Windows L8, cause i do believe that Lumia 920 would've had a better chance, with this dealer, Yo.

2. GALAXY-STORM

Posts: 328; Member since: Oct 13, 2012

In few more years the gap between $7.4 and $8.2 billion is going to be shortened further. It will be interesting to see Nokia's Q4 result with lumia 920 around the corner.

4. darac

Posts: 2156; Member since: Oct 17, 2011

Actually - and I'm sad to say this but - Apple's next quarter will be monstrous and could bring up to 14 billion in profits

17. letgomyeggroll

Posts: 139; Member since: Jun 13, 2012

I would to disagree with Apple coming up next quarter. Darac get the hint, some Apple and fans have already switch or planning to switch to an Android or Windows phone. They have just notice that, they just upgrading to another IPhone that that doesnt have that much of a change from the previous models. Mostly the new version repairs the problems with the original ones. The cool futures that claim that is new, its been in other phones for years. Like some review says or even Apple says "The new cool future in OUR DEVICE will wow our fans" Think about it, all Ipods, Iphoness, and Ipads are no different from each other. Unless you are a big Rainbow Apple logo fan, people have already caught on move else where. On top of that, Apple is folking up millions of dollars in legal fees. They are banking on these law suits to cover them.

3. darac

Posts: 2156; Member since: Oct 17, 2011

Wow, 74 million smartphones sold by "others " Can this really be?!? If we take away the paltry 6.4million shipped by Nokia it would mean 68 million smartphones sold by LG, Sony, Huawei, Motorola, Panasonic, Sharp, Acer, Asus, Alcatel, Pantech and many Chinese vendors. And they all run android! By that math, we get close to 120 million android phones shipped in the quarter!!

5. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I bought their phone for the first time in years so do a few of my friends to show support for samsung in their fight against a bully.

12. Topcat488

Posts: 1411; Member since: Sep 29, 2012

Samsung is just setting the $1 Billion aside, because they Know when their LTE court battle begins, Apple is going to have to add to that whats already in the kitty. And then Apple will have to resort back to 3G Networks for their Apps Launcher Phone.

6. mxion

Posts: 33; Member since: Sep 12, 2012

pay us our money asap.apple ftw

7. Rocksteady unregistered

Your money?! I didn't know that apple is saving your cut out of the 1 billion. On the contrary, they'll take more money from your pocket because the 1 billion is not enough to feed their greed.

11. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Employed by Apple?

16. Nathan_ingx

Posts: 4767; Member since: Mar 07, 2012

Apple: Here's $1 for you Mxion for the comment and do gladly keep the change.

19. Jelly_Bean

Posts: 109; Member since: Sep 11, 2012

And take $1 tip from me as well MXION.

20. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

apple to mxion: hey! bought our lighting adaptor and a spare lighting cable. there a lot of apple user stealing cable from each other you know...

8. app_droid_soft

Posts: 42; Member since: Sep 09, 2012

in this quarter apple had sold less iphones because iphone 5 was coming...next Q apple will kick everyone's ass

9. rusticguy

Posts: 2828; Member since: Aug 11, 2012

World is accustomed to hearing this crap so often now ... there's always some iNTELLIGENT statement behind every failure as alaways . .. :)

18. THETECHTEAM

Posts: 82; Member since: Dec 12, 2011

i doubt it

13. someones4

Posts: 627; Member since: Sep 16, 2012

A billion dollars is pocket change to Samsung. Apple will need it. Apple will follow nokia's and microsoft's path

14. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Apple sells less iPhones but have a higher profit than Samsung. Lol shows how they're robbing people of their money.

15. Nathan_ingx

Posts: 4767; Member since: Mar 07, 2012

Apple: Here's $1 for you Mxion and do gladly keep the change for the comment.

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