Tag: Profits

Despite The Note 7 Recall, Samsung Posts Massive $12.5 Billion Profit

The South Korean electronics giant, Samsung, has posted a record quarterly profit despite being plagued by scandals in the recent past.

The recall of their 2016 flagship, the Galaxy Note 7, and the prosecution of de facto leader Jay Y. Lee on bribery charges, didn’t stop Samsung from raking in a record US $54.8 billion in quarterly revenue and an operating profit of US $12.5 billion. Revenue figure rose by 20 per cent year-on-year but net-profit rose by a staggering 89 per cent in the last quarter! A lot of the credit has to go the strong sales of their Galaxy S8 and S8+ devices and their component businesses.

Note- These figures are in KRW

Back in 2016, Samsung blew us away with their best smart phone till yet, the Galaxy Note 7. Widely regarded as the smartphone to beat, it garnered rave reviews and restored the Note series as a premium smartphone line-up. However, the fame was short-lived as reports of the Galaxy Note 7 batteries failing and catching fire started surfacing and it soon became a worldwide top news. Samsung guaranteed replacements for people who reported this incident in the beginning. But come October 2016, Samsung announced that they’re discontinuing the Galaxy Note 7 and recalling all the devices in the market. A report estimated that the recall of the Galaxy Note 7 cost the company upwards of US $17 billion.

Early 2017, Samsung’s Vice Chairman Jay Y. Lee was arrested on corruption charges. He was accused of bribing an advisor of Hong Kong’s then President Park Geun-hye in exchange for political favours. It was reported that he had paid close Us $36 million to the advisor in order to win government support for a merger between two Samsung subsidiaries. Jay Y. Lee, son of current chairman Kun-Hee Lee is considered to be the heir to the Samsung empire was also prosecuted back in January. However, his arrest was rejected by a court a few days later.

In 2016, Samsung acquired Harman for a record $8 billion, their most expensive acquisition yet. Samsung then posted that Harman garnered a sales revenue of $1.9 billion with an operating profit of $200 million. However, factoring the cost of acquisition, the profit comes down $5 million and Samsung has said that the acquisition will likely affect Harman’s business for the next few quarters.

Samsung has, however, warned that the rising price of components has eaten into its profit. Factoring the marketing cost for their soon-to-launch Note 8 will have an effect on the profit. And now that the Galaxy S8 and its bigger sibling the Galaxy S8+ are out of the rosy “post-launch period”, the sales will consequentially decrease.

July 28, 2017
Samsung Registers 30 Percent Dip in Profits in its Latest Quarter

Samsung’s profits have seen a steady drop in the past few quarters. The Korean electronic giant has released the figures for the period from January to March, and there is a 30.5 percent dip in the profits for the company. But the executives at Samsung might be satisfied with the results as the dip is lower than previous quarters.

Samsung said that it expected an earning of 5.9 trillion Korean won ($5.4 billion) in operating profits for the quarter that ended on March 31. The year 2014 was perhaps the worst year for Samsung where the company saw a fall of about 60% in profits over the last quarter of the year.

The Newest Samsung on the Block, the S6 Edge

This is Samsung’s sixth consecutive year-over-year fall in quarterly profit. The smartphone business was the major driver of growth for the company but due to lack of innovation and a barrage of competition, Samsung has steadily lost ground in the business. Industry analysts are predicting better performance in the future following the launch of new Galaxy S6 and S6 Edge.

Taking into consideration the heavy criticism for its lackluster products, Samsung has decided to bring metal frame designs that began with the Galaxy Alpha to more of its products. While the design is just one aspect of things, Samsung should also offer better specs to its customers for the price tag. Companies like Xiaomi, Lenovo, Asus and others have shown that it’s possible to offer great specs at lower prices and the consumers are demanding the same from the bigger companies.

April 7, 2015
Google Posts Profits But Misses Revenue Expectations

Google has released its Q2 2013 earnings today and, though they appear strong in absolutes, they missed analysts’ expectations by a fairly wide margin.

The company posted $14.1 billion in revenue, up slightly from last quarter and an improvement of 20% from the previous quarter last year, but analysts were expecting $14.4 billion. Net income was solid at $3.23 billion and $9.56 per share but, again, they were below expectations.

Motorola maintained its reputation as an anchor weighing down the otherwise-profitable Google, as the hardware division posted a quarterly loss of $342 million on revenue of $998 million. Revenue was down from the previous quarter, while the net loss was up, placing even higher expectations on Moto X, which is expected to debut at the end of the month.

Google’s average cost-per-click, which includes clicks related to ads served on Google sites and the sites of its network members, decreased about 6% in the quarter compared with a year ago. Analysts had predicted prices would drop about 3% in the period.

“The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google. With more devices, more information, and more activity online than ever, the potential to improve people’s lives even more is immense,” CEO Larry Page in a press release.

Google is expected to spend upwards of $500 million on advertising Moto X, which is rumoured to be customizable by colour, engraving and build material. The company is otherwise extremely healthy, with over $53 billion cash on hand.

[Via]

July 19, 2013
Samsung On Course For Record $8.33 Billion Profit In Q2

Samsung has released its estimated earnings for Q2 2013, with a full announcement scheduled for later this month. The company estimates profits of $8.33 billion (9.5 trillion won), up nearly $2 billion over Q1’s $6.4 billion profit.

This would give the Korean company a 47 percent year-on-year increase in profit from a revised KRW6.46 trillion in Q2 2012 – slowing from the 54 percent growth it posted in Q1 2013 – and a 20 percent year-on-year increase in revenue from KRW47.60 trillion during the same period.

Analysts had expected a figure of more than 10 trillion won, and Samsung shares lost more than two percent in morning trade.

“Demand for high-priced, high-end smartphones shows slowing growth, which could hurt Samsung’s profit margin,” IBK Investment and Securities analyst Lee Seung-Woo told the Yonhap news agency.

Samsung has lost nearly 30 billion dollars in market value since mid-March, before it launched the Galaxy S4 smartphone a month later. Several brokerages have downgraded Samsung and their earnings forecasts for the company on fears that the S4 is not selling as strongly as hoped.

As Reuters reports, shares in the $185 billion company have dropped 15 percent since early June, hit by a series of brokerages downgrades. The share price reflects concerns about handset margins, with its mobile business generating 70 percent of the tech giant’s total profit.

Its share price woes equate to a fall in market value of 33 trillion won ($29 billion), almost equal to the combined market capitalisation of Sony Corp and LG Electronics Inc .

Samsung was expected to post higher earnings in the current quarter, as analysts were expecting strong smartphone sales to revive its growth exponentially.

[Via]

July 5, 2013
Google Reveals $14 Billion Revenue In Q1 Earnings

Google presented its Q1 2013 earnings today and, overall, the company looks to be in good shape. Revenues of $13.97 billion were down slightly from the always-hot previous quarter, but that number was in line with analysts’ expectations. More impressive was the $3.35 billion net income, which was up over 30% from the same period a year ago.

Motorola Mobility continued to shed money, gross revenue of $1.02 billion and a net loss of $271 million. Patrick Pichette, Google’s CFO, said, ”We’re pleased with the velocity of change at Motorola Mobility. We’re excited about the future, but results will continue to be variable.” The amounts of lower, both in revenue and money lost, than the previous quarter, which means internal money-saving measures, in addition to the substantial number of jobs shed, are making a difference.

The company hasn’t released a product since September of last year, but 2013 promises to be one of big changes in the company. Now fully integrated into Google, we’re hearing rumours that the X-Phone will be “phenomenal” and come in up to 20 colours (don’t hold your breath), in addition to being much more manageably-sized. Motorola has also promised to stick fairly close to the stock Android experience, though whether that, along with Google’s help, will be enough to regain much of its lost brand recognition and market share remains to be seen.

Last year was Google’s first $50 billion revenue year, and CEO Larry Page said that the three pillars of the business — Chrome, Android and Ads — would continue to be the focus in 2013. The company is activating 1.5 million Android devices every day and with the release of Google Glass to developers this week, there’s yet another platform on which users can expect to see Google dominate.

April 19, 2013