Samsung tops Apple as most profitable smartphone manufacturer

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

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52 Comments

1. Googler

Posts: 813; Member since: Jun 10, 2013

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

16. Mxyzptlk unregistered

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.

19. Commentator

Posts: 3722; Member since: Aug 16, 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.

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.

26. someones4

Posts: 627; Member since: Sep 16, 2012

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

33. Googler

Posts: 813; Member since: Jun 10, 2013

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

36. number29

Posts: 185; Member since: Jan 25, 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.

28. Mittal

Posts: 494; Member since: Dec 14, 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

30. TylerGrunter

Posts: 1544; Member since: Feb 16, 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

37. number29

Posts: 185; Member since: Jan 25, 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.

31. willard12 unregistered

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

41. tedkord

Posts: 17043; Member since: Jun 17, 2009

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

47. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

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

48. barondebxl

Posts: 180; Member since: Nov 04, 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.

2. aryanfr1

Posts: 125; Member since: Jan 24, 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

9. Shatter

Posts: 2036; Member since: May 29, 2013

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

14. alterecho

Posts: 1106; Member since: Feb 23, 2012

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

17. Mxyzptlk unregistered

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

34. Googler

Posts: 813; Member since: Jun 10, 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.

42. tedkord

Posts: 17043; Member since: Jun 17, 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.

3. PAPINYC

Posts: 2315; Member since: Jul 30, 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!!

15. Birds

Posts: 1172; Member since: Nov 21, 2011

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

21. Commentator

Posts: 3722; Member since: Aug 16, 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.)

35. PAPINYC

Posts: 2315; Member since: Jul 30, 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!!

39. darkkjedii

Posts: 30672; Member since: Feb 05, 2011

Good correction Commentator

40. PAPINYC

Posts: 2315; Member since: Jul 30, 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??!

43. darkkjedii

Posts: 30672; Member since: Feb 05, 2011

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

45. darkkjedii

Posts: 30672; Member since: Feb 05, 2011

Oops stopped papster

4. htc_evo_3d

Posts: 84; Member since: Mar 11, 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

5. speckledapple

Posts: 902; Member since: Sep 29, 2011

And that is when the other shoe drops.

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