Samsung profit guidance way better than expected, company on track to becoming world’s biggest smartphone maker

Samsung profit guidance way better than expected, company on track to becoming world’s biggest smartphone maker
Samsung has released its quarterly profit estimate and it’s better than even most optimistic analysts thought. The Korean company sees its operating profits at some $3.5 billion (4.2 trillion won) against an average of $2.85 billion (3.4 trillion won) suggested by analysts. That’s a 12% increase on the quarter, but a 14% decline when looked on a year-on-year basis.

“Samsung’s estimates are far better than expected. Its telecommunications business is seen very positive as shipments of smartphones and other high-end handsets expanded,” Park Jong-min, a fund manager at ING Investment Management, said.

Samsung is projected to surpass Apple as the biggest smartphone maker in the world this very quarter. Last trimester, smartphone sales at Samsung stood at around 19 million, just a million short of Apple, and this quarter a dramatic increase to 28 million is said to leave Cupertino trailing. Everyone expected Samsung’s phone business to drive profits up, but the company’s estimate shows that it has surpassed all expectations.

"The Galaxy S II probably played a key role in boosting the company's earnings and it will continue to do so pretty much unchallenged, until Apple unveils a better new version of iPhone," Kyung Woo-hyun, a fund manager at Daishin Asset Management, said.

Previously, the company has mostly relied on its memory chips for profits, but lately as chip prices continue their decline, handsets have taken over as the company’s brightest spot. The Samsung Galaxy S II will be key to continuing that success as it faces the iPhone 4S stateside. Right after the somewhat underwhelming Apple release, Samsung released a comparison table showing that technically its S II is thinner and more powerful than the iPhone 4S.

The Koreans are also said to have the biggest competitor to the iPad in the form of the Samsung Galaxy Tab series. 

source: Reuters

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16 Comments

1. ledbetterp3

Posts: 467; Member since: Aug 31, 2011

didn't read article yet, but I thought samsung was already the worlds biggest smartphone manufacturer...? lets see what this article says

2. ledbetterp3

Posts: 467; Member since: Aug 31, 2011

ahh, I see, apple was ahead of them, I believe it...

3. taco50

Posts: 5506; Member since: Oct 08, 2009

Let the battle begin. iPhone preorders are live right now. Can Apple do 5 million in one weekend?

4. 10aera

Posts: 42; Member since: Mar 02, 2011

What battle? Don't you get it, Taco, samsung's 3 months old Galaxy SII is way too better than Apple's iPhone 4S. There's no battle, question, or doubt about it! Now, if Apple customers were able, as any other cellphone customer, to buy the ultimate technology according to reviews, specifications, and overall performance, they were also buying a SII right now. The problem is that Apple fans buy Apple and just Apple. Wether or not their little and already design-boring iPhone 4S has real matching specifications or not. Just a piece of advise: be like me and buy Samsung, HTC, Sony, LG, Apple, Nokia, or whatever brand of cellphone as long it offers the best piece of technology at the moment. That way you will never be wrong and you will never loose a discussion, simply because all the specifications, reviews, advises, and challenges perform or about your at-the-moment cellphone back your choice! ;-)

7. taco50

Posts: 5506; Member since: Oct 08, 2009

Trust me I'm making an educated decision. I'll pass on force close OS with no battery life and crap apps/malware/Trojan horse.

9. Devon

Posts: 11; Member since: Oct 07, 2011

I have a GS2 and an ipad 2. Malware? never had 'em. Battery life lasts more than a day but I do have it on full brightness. I love my Ipad 2 'cause it can play mkv's without a hitch even 720p unlike that s**t Tegra 2. But the ipad 2 crashes as much as the GS2 but it just brings you to the homescreen.

11. remixfa

Posts: 14605; Member since: Dec 19, 2008

except 1) the force close thing is pretty much ancient history 2) the SGS2 gets better battery life than the iphone4S, even by apple's charts. 3) the main apps are all the same, and same quality. While android might not have epic games developing for it, it does have the host of full google apps that apple will never see.. and people use a heck of a lot often than a game. 4) the incidence of malware on android is 0.000005% by last report. Android has also never been successfully hacked in the national hacking competitions, where apple holds the record for fastest remote hack at 12 seconds. if you prefer outdated apple, fine.. but get your facts straight.

12. gallitoking

Posts: 4721; Member since: May 17, 2011

yo forgot to mention the most important FACT... no other cell phone has EVER sold MORE then the iPhone... any single phone... thats a FACT every company in the world are after SALES and profits.. and guess what. Apple is number one on both...

16. sUsPeNc3 unregistered

I used my friends iPhone 4 and while playing a game, it closed (basically crashed). happened with at least 3 different apps. He said it happens sometimes. taco and other iphone fans are liars. iOS also crashes apps. It just doesn't give you a notification. Android is decent enough to atleast give a message of force close. On iOS it was like WTF just happened?

18. iHateCrapple

Posts: 734; Member since: Feb 12, 2010

And what does that mean gallito?

5. 10aera

Posts: 42; Member since: Mar 02, 2011

I'm telling you: when buying by brand you can either loose or win, when buying by specifications and reviews you will always win. Don't be a blind person... Apple is a great company and both, the iphone 1 and 4 were great gadgets, but today's moment belongs to Samsung... Probably tomorrow will be Apple's or Nokia' moment one more time... Then, i'll be with them. Try the SII or the Nexus Prime for the time being... Now that they are kings! Tomorrow you and I will go back to Apple when their future breaktrough rocks in! ;-)

6. 10aera

Posts: 42; Member since: Mar 02, 2011

And on regards of your sales' prediction: yes! Apple will do it. iFans will make unfinished lines for buying their ultimate gadget, but mark my words: they'll buy the iPhone 4S not for being the best gadget in the market, because it isn't, but for being an Apple's gadget. How much blind can they be??

8. henrickrw

Posts: 408; Member since: Sep 16, 2011

Accept this guys. The GS2 is overall a better handset than the Iphone 4S. No phone is perfect tough.

13. gallitoking

Posts: 4721; Member since: May 17, 2011

brand vs specs.. specs have been losing year after year...

15. belovedson

Posts: 1060; Member since: Nov 30, 2010

everyone who uses an android knows the coding behind it was loose and resulted in many force closes. however froyo on those bugs and force closes are becoming far and few between. google may not approach the tight coding of apple due to the amount of hardware they deal with. but eventually android or windows will get it just right and soon the hardware and or specs will be the determining factor for buyers. oops its actually the costs. i mean seriously if you make less than 2k a month and have a choice between two phones that offer the same experience, anyone that is budget conscious will choose the option with the lower asking price. gs2 could be had for a 100. the 4s bare minimum will be 200 even in 4-5 months price will not change. by that time gs2 or equivalent android phone will be half that at least

14. word unregistered

to all the flaming fanboys: grow up. not everyone wants the same things. not everyone has the same needs. stop trying to make everyone think the same as you. it wont happen. if eveyone thought the same as you the world would be doomed to be full of f**kwits. let it be. you like what you like. stop being f**knuckles and let others like what they like.

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