Samsung posts Q1 results, overtakes Nokia's phone shipments

By Lee Kaelin on April 27, 2012, 7:30 AM

Samsung has halted Nokia's 14-year lead as the world's top phone supplier according to analysts, posting first quarter results on par with record predictions in April. Official figures for the period ending March 31 saw the electronics giant's operating profit hit a record 5.85 trillion won ($5.15 billion) with net profits of 5.05 trillion won ($4.46 billion), according to Business Week. Sales increased over the year-ago period by 22 percent, to 45.3 trillion won ($38.12 billion).

The company's mobile business accounted for over 70 percent of its operating income at 4.27 trillion won, masking the drop in semiconductor and TV profits. In the first quarter alone, Samsung shipped 93.5 million handsets, gaining a 25.4 percent market share according to the Financial Times. Of those shipments, 44.5 million were smartphones, equaling a massive 30.6 percent share of the smartphone market. In comparison, Apple shipped 35.1 million iPhones for a 24.1 percent share.

Senior vice president Robert Yi said he expects continued momentum in the company's phone business, helped by an upcoming launch event in London. "We anticipate very strong demand for Galaxy S III," now just days away.

"Samsung and Apple are outcompeting most of their major rivals and the smartphone market is at risk of becoming a two-horse race," Neil Mawston of Strategy Analytics told CNET. Strategy Analytics noted that "Samsung's global smartphone shipments rose 253 percent annually [...] as demand surged for its popular Galaxy models such as the Note, S2 and Y."

Upon hearing the news, company shares grew another 2.9 percent to a record of 1.38 million won, adding to the already impressive 29 percent growth this year. Samsung's market value is $191 billion, which although impressive is far from toppling Apple's $582 billion.




User Comments: 5

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Guest said:

And if you count the fact that Samsung makes Apple's iPhone and iPad internal parts like CPU's, SOCs and displays then Samsung market share is somewhere at 54.8, plus the facts that it sells AMOLED and TFT displays to other phone manufacturers.

MilwaukeeMike said:

i wouldn't say it's really a two-horse race, or will be in the future. HTC's new One line might be pretty good, and Intel just released their first phone. You don't have to be huge to survive, you just to be profitable. Windows 8 might be great for the business community, and most of them use Blackberrys currently. Then there's always Motorola....

Guest said:

I thought this happened years ago..

Guest said:

Not surprising at all. Samsung really does make just about everything and they're set to take over the world. I approve.

princeton princeton said:

i wouldn't say it's really a two-horse race, or will be in the future. HTC's new One line might be pretty good, and Intel just released their first phone. You don't have to be huge to survive, you just to be profitable. Windows 8 might be great for the business community, and most of them use Blackberrys currently. Then there's always Motorola....

Except companies like HTC and Motorola aren't turning a profit.

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