Technology giants Samsung have released predictions for their first fiscal report of 2013, set to be released later this month, and reveal they expect a massive profit of ₩8.7 trillion (South Korean Won) which equates to around $7.7 billion for the first quarter of this year.
In comparison to the same period last year it is an increase of about 53% in operating profits. This large profit margin comes from a total sales figure of ₩52 trillion ($46 billion) and is owed in large part to massive smartphone sales.
Analysts predict that in total Samsung will have sold a total of between 68 and 70 million units in the first four months of 2013, somewhat surprisingly this is an increase on the sales figures of 63 million Samsung handsets sold over the final quarter of 2012, which includes the holiday season.
The strong showing by the colossal South Korean company was slightly down on the last quarter of 2012, when they posted profits of ₩8.84 trillion ($7.8 billion) however the festive period probably explains this better showing toward the end of 2012 as despite lower smartphone sales there was probably a stronger showing for other products provided by Samsung, such as televisions.
Whilst these remain rough numbers it is assumed that their estimates will be pretty close to the confirmed figures on April 26 and if so there is a lot for CEOs to be celebrating in Samsung Town (which is amusingly the actual name of Samsung’s Headquarters) in Seoul, as these impressive figures will be followed by the release of the much anticipated Galaxy S IV smartphone which should carry these impressive figures into Q2.
In terms of comparison with their competitors, namely Apple, the smartphone sales figure will be particularly impressive, as Apple’s 2013 Q1 report showed iPhone sales sat at 47.8 million, about 20 million units less than the figure shifted by Samsung.
Despite this Apple turned a greater profit and had higher revenue than Samsung, as these figures sat at $13.1 billion and $54.5 billion respectively. This is not a surprise as it has been established for a while now that Apple do not need to dominate the market in terms of sales to take home the lion share of the profit.
It is unlikely that this lower fiscal showing than this major rival will really affect Samsung bosses too much, they can still boast large increases on the numbers from the same period than last year and whilst theirs is a company in the ascendancy Apple has seen stagnant figures, with the company posting almost identical numbers to last year, Samsung have growth behind them and have large sections of the market eagerly anticipating the release of what could be a groundbreaking device in the Galaxy S IV later this month.
When the full figures are released at the end of the month it will be interesting to see the breakdown of profit gained through smartphone sales in comparison with the rest of their business as Samsung have many high-end products across the board and if smartphones can displace these other products as Samsung’s main earner it will be a significant shift indeed.