Samsung's Q1 operating profit drops for second consecutive quarter, still makes a hefty $8.2 billion

[Himanshu Arora]

Samsung's Q1 earning report is out revealing another slight decline in profit, mainly due to weaker demand for high-end smartphones. The South Korean company said that the operating profit dipped 3.3 percent year-on-year to 8.49 trillion Korean won ($8.2bn) in the January-March period.

Financial results were marginally better than guidance provided by the company earlier this month. They were also inline with analysts' average prediction of an 8.4 trillion won operating profit. As far as sales are concerned, the figure stood at 53.68 trillion won, a 3 percent increase year over year.

Samsung's mobile division recorded an operating profit of 6.43 trillion won ($6.2 billion). While this is slightly lower than the operating profit (6.51 trillion) that the world's largest phone maker reported a year ago, it's 18 percent more than the figure reported in the previous quarter.

An important point to note here is that sales of the Galaxy S5, Samsung's latest flagship that arrived earlier this month, do not factor into the company's Q1 results. The company expects better earnings in the next quarter mainly due to expected strong sales of the flagship, which outperformed launch day sales of its Galaxy S4 predecessor.

Samsung's earning report comes less than a week after it's chief competitor Apple reported that the company sold 43.7 million iPhones, much higher than the expected 38 million figure and a record for the first quarter.

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https://www.techspot.com/news/56568-samsungs-q1-operating-profit-drops-for-second-consecutive-quarter-still-makes-a-hefty-82-billion.html

 

[VitalyT]

It is a no surprise, since Galaxy S5 was a disappointment.

When the market is hyped up about an upcoming Apple product, most of the rumors turn into reality. With Galaxy S5 it was the other way round, barely anything became true, just a very dull refresh on S4.

But wait, because much more disappointment is coming this time. Galaxy S6 and Note 4 are expected to be the first 64-bit products, and as such to carry endless number of OS + software compatibility issues. It may take more than a year to smoother out experience with a 64-bit Android. And for anybody who gets sucked into that painful experiment - good luck!

 

[Guest]

Did you even ref the whole story? Ref the last paragraph!

 

[VitalyT]

Did you even ref the whole story? Ref the last paragraph!

That means I'm being prophetic Read my post 3 month from now

 

[MilwaukeeMike]

It is a no surprise, since Galaxy S5 was a disappointment.

When the market is hyped up about an upcoming Apple product, most of the rumors turn into reality. With Galaxy S5 it was the other way round, barely anything became true, just a very dull refresh on S4.

But wait, because much more disappointment is coming this time. Galaxy S6 and Note 4 are expected to be the first 64-bit products, and as such to carry endless number of OS + software compatibility issues. It may take more than a year to smoother out experience with a 64-bit Android. And for anybody who gets sucked into that painful experiment - good luck!

It 'was' a disappointment? Are they off the market already, or do you mean it 'is' a disappointment. Either way, having a company post poor results before a new flagship device is normal. Watch what iPhone sales will do this summer... they'll go down, because everyone who wants a new iPhone will wait for the next one in Sept. Same thing for the 1st quarter and Android phones.

The iPhone always delivers? Not since the 4S by any measure. A good measure of what people think the future of a company will bring is the stock price. The stock price is literally, the present value of future earnings. Look at Apple's stock price history. On Sept 17th, 2012, it was at an all time high at 700. It dropped soon after... why? because on 9-21-12 they released the iPhone 5. It hasn't recovered since.

 

[insect]

So... what do you do with 8.2 billion dollars?

Presumably, that is sales - costs = profit where-in the sales are their products/services and costs include salaries, materials, R&D, etc. (which is why the sales costs are high for consumers).

Obviously, they will want to sit on some of it for risk-management (future lawsuits, crappy product that has negative return, etc.).... but 8.2 billion? And that's just one "bad" quarter.

 

[lipe123]

It is a no surprise, since Galaxy S5 was a disappointment.

When the market is hyped up about an upcoming Apple product, most of the rumors turn into reality. With Galaxy S5 it was the other way round, barely anything became true, just a very dull refresh on S4.

But wait, because much more disappointment is coming this time. Galaxy S6 and Note 4 are expected to be the first 64-bit products, and as such to carry endless number of OS + software compatibility issues. It may take more than a year to smoother out experience with a 64-bit Android. And for anybody who gets sucked into that painful experiment - good luck!

Look there is nothing wrong with being an apple fanboy but at least claim ignorance like the rest instead of throwing out complete BS.

Lets see the S5 was a dissapointment hmm?
By what criteria?!, the technical specs blow apple out of the water, the software is FULLY configurable and you can load a custom build of android with no penalty or app store lockout or warranty BS. They've sold metric asstons of the things and they are still selling like crazy.
It's water proof without any further modding and it just goes on.

Rumors, hype about an iPhone, are you high?! The iphone has used the same interface and apps and everything since the first freaking 3S, there has been so little change since the 3S and the 5-whatever that it can't even be considered progress compared to the first android 2 phones to the current android 4 generation. If you want REAL actual tangible progress then comparing ios vs android is a no brainer.

64bit will be a mess when samsung does it but when apple did it, it was perfect? Kinda like how apple was perfect when they released their new mapping software that was a giant mess?
Thats just plain speculation and wanting someone else to fail because of a personal view.

I'm sorry but Apple with all their lawsuits and blatant stealing of tech from others and claming it to be their own inventions cannot possibly sink to a lower point in my book.
If you start bashing Samsung with a "Apple is better" standpoint you need to be corrected because you cannot be more wrong if you tried.
Samsung is not perfect at all but hell they are better than Apple by a HUGE margin.

 

[9Nails]

Lets see the S5 was a dissapointment hmm?
By what criteria?!

I'd certainly like to know by what criteria as well. The Galaxy S5 is very much a first class product that hit on all the marks. It was very much a consideration when I purchased my new phone for this year. There's nothing in the S5 package that I was not pleased with, but I ended up purchasing the HTC One M8's package for it's distinguishing Boom Sound feature and the overall look and feel of the phone.

 

[Guest]

Walls of text above

Ahh, Fanbois... Apple vs. Samsung... Its rather funny sitting on the side watching the two go at each other like they're going to war (Wasn't that a Maroon 5 song or something?)... That's just one of the many reasons I avoid both Samsung (Android included) an Apple products, due to the 'holier than thow' attitudes displayed by both, I just trudge along with my Nokia Lumia 920 and couldn't be happier, and with the 930 out soon I'm pretty much set with a good, solid, well rounded phone.

So, in summary fanbois, enjoy your pointless blustering sluging match to the fullest... au revoir you crazies, from a very happy Nokia owner.