Samsung sitting on $40 billion in cash, $28.5 billion after debt

Samsung sitting on $40 billion in cash, $28.5 billion after debt
There has been a lot of talk recently about Samsung's financials and its rising profits, and the new word is that we should probably expect to see some acquisitions from Samsung, because the company is sitting on quite a lot of cash. According Samsung's last earnings report, the company has built up $40 billion in cash, and even after subtracting the company debt, it has $28.5 billion in cash.

On Monday, we heard that Samsung had the second largest profits in the smartphone market, behind the perennial leader, Apple. Over the past couple years, Apple has started to use its cash reserves to provide dividends and share buybacks to investors, but analysts are thinking that Samsung will use its cash reserves on acquisitions. 

Samsung told the Wall Street Journal that the use of the cash reserves will be focused on "investments sustainable for areas like facilities, R&D, and marketing that will help the company solidify or boost competitiveness", which is to say that Samsung avoided giving a real answer to what it plans for the money. But, that is quite a lot of money, and it could go a long way with the right investments.

source: WSJ

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30 Comments

1. Ninetysix

Posts: 2965; Member since: Oct 08, 2012

Oppa Gangnam Style.

3. p0rkguy

Posts: 685; Member since: Nov 23, 2010

I'm still surprised Samsung didn't use that for the S3. It probably would've sold even more.

9. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Probably not.

28. omar300

Posts: 210; Member since: Jun 24, 2012

R&D! what a joke, samsung doesn't have R&D. it has a huge software designer team, thats all.

29. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Ignorance is a bliss. Samsung make everything from every where including American. This is the true reason why apple is so hell bend to stop Samsung. I don't think apple could with their present strategy. Plus apple don't play well with others, everyone apple approaches is either a lawsuit or looking to buyout for a dime.

14. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

I'm a Mother Father Gentleman.

21. a961009

Posts: 120; Member since: Aug 04, 2011

actually it is Oppan gangnam style. From native korean;)

22. quakan

Posts: 1419; Member since: Mar 02, 2011

I think you mean Broken Condom Style

2. mikewillz

Posts: 52; Member since: May 03, 2013

That's a lot of double cheeseburgers from McDonalds.

4. Whateverman

Posts: 3295; Member since: May 17, 2009

Why oh, why can't Nokia, Motorola, LG, RIM, and Sony follow the Apple/Samsung model. HTC is on their way but VZW is being stupid about not offering the One. The DNA is a good phone, but haven't they learned about passing on hot devices like GS2 and the Note 1? Anywho, great job Samsung but I hope the others can learn from your success.

19. belovedson

Posts: 1061; Member since: Nov 30, 2010

dude whats with you htc fanatics. there's a ton of us who switched from htc to moto or samsung face it samsung has come along way since the galaxy. starting with the epic, samsung has been on a roll. stop complaining and respect them. apart from occasional radio problems and use of plastic. samsung owns every android manufacturer and if ios was open samsung would own in that market too. they seem to know what the customer wants and uses its assets to appeal to markets that were open. htc had a long head start since the windows 6.5. but lets face it they sucked until most recently, the one. the dna. let's not even start. i had that phone. crappy battery life, gets hot, and limited storage

24. Whateverman

Posts: 3295; Member since: May 17, 2009

Wait, what??? HTC fanatic? Stop complaint and respect them? Dude, did you even bother to read my post before you put me in those boxes? I complained about nothing, except for VZW's stupidity, and I referenced 2 Samsung devices. That should show they have my respect, but if that doesn't do it for you, how about the fact that I just paid full retail for a Note 2? Lastly, I hate HTC devices! So I don't know where you get the impression that I'm an HTC fanatic. No matter how I feel about their devices, the One and DNA are great phones. Sorry you had a bad experience, but every OEM has its duds. Some more than others. All I'm saying is the dualopoly is bad and if the other OEMs can hit their stride like samsung, it would be much better for us all.

27. troutsy

Posts: 383; Member since: Feb 17, 2012

Yeaaahhhhhhhh..... they're not choosing to sell fewer phones and make next to no profit. That's like if I were to say you need to make a phone and sell 200 million a year.

5. lorenzattractor unregistered

Should probably invest on a better design team.

12. RORYREVOLUTION

Posts: 3131; Member since: Jan 12, 2010

and yet their phones are selling like crazy.

18. lorenzattractor unregistered

One thing has nothing to do with the other one. Selling like crazy =/= good design.

20. belovedson

Posts: 1061; Member since: Nov 30, 2010

the metal body or composite (a fancy sphancy material with traces of plastic) is coming soon.

6. Aeires unregistered

Wonder how much the entire Samsung corporation makes, the mobile division is only a fraction of what they do. Samsung builds everything from phones to refrigerators to military tanks.

16. MichaelHeller

Posts: 2734; Member since: May 26, 2011

Earnings report for Q1 says $47.6 billion in revenue for the company as a whole, $6.4 billion in net profit.

7. kclgphilsbsa

Posts: 765; Member since: Jan 21, 2013

:D Now more R&D please!! so i wont go with Sony Honami.. Release a device w/ more innovations, stop d feature dumping

10. ph00ny

Posts: 2068; Member since: May 26, 2011

Don't they spend more on R&D than pretty much every other tech company? I think they were rivaling pharm companies in the last few years

11. kclgphilsbsa

Posts: 765; Member since: Jan 21, 2013

No,, samsung spent 10.3 billion in r&d 3.38 for Apple 11.sumthing in marketing 4 samsung 1bill for Apple Hmm but Samsung electronics has many products so we dont know the allocated budgets for every dept

8. corporateJP

Posts: 2458; Member since: Nov 28, 2009

O.O McDuck Sighting...

13. scsa852k

Posts: 331; Member since: Oct 16, 2012

No wonder Samsung is playing around by making 2139012391209832 variants of Galaxy phones.

15. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

Scrooge McDuck? What are you doing here? O_o

17. MichaelHeller

Posts: 2734; Member since: May 26, 2011

I believe that any company that has that much cash in reserves is obligated to have a McDuckian pool of money in which to swim or ski.

26. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

Hahaha......xD

23. Topcat488

Posts: 1417; Member since: Sep 29, 2012

Samsung being "Greedy", S4 will be compared to itself... 3 different varieties of 1, because of a rush too greediness... The stumble starts here for real, so standup straight with the Note III, if you don't want to fall. Rushing for profits = fail. Because the people aren't stupid.

25. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

I don't think it was necessarily a rush for greed's sake... more like a legal defensive move in case they are on the losing ends of any other lawsuits. Infringing devices have to be named. Due to the numbers being named, judges are imposing limits on how many devices can be included in the filing because these stupid suits are occupying so much of the courts' time. As only the devices named can be levied, any device that comes out after the filing will require all new paperwork be submitted. It's basically saying, "Oh, you wanna take me to court? Well, all right then... I'll give you all the court you can handle."

30. donfem

Posts: 708; Member since: Mar 30, 2011

And to think your bad english makes you .....

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