Apple posted net income of $9.5B for second quarter this year, and has reportedly earned a total of over $43B in revenue for the said quarter. This report comes possibly to prevent the AAPL stock from falling way below the $400-level. According to the report, some 19.5M iPads, 37.4M iPhones have been sold and we're not even half-way through the year yet.
Net income has dropped roughly $2.1B from the same quarter last year but the Company claims that they have actually sold more devices as compared to the same quarter last year. This report contradicts reports that the Company is already in trouble after Google, Samsung and even Microsoft have made strides in developing devices to compete with the iPhone and iPad.
Moreover, a big chunk of Apple revenue comes from the sale of applications, posting continuous growth at notable rate. Also, the Company reportedly is quite liquid as it has around $145B in cash, up from $121B same quarter last year. Clearly, the company is still on the roll.
BlackBerry recently shipped 1M units of Z10 devices to various key markets and has apparently sold most of the shipment, resulting in early profits this year. This is very unlike the typical earnings news by BlackBerry as they have posted a net loss of $125 million last year in the same quarter.
Aside from BlackBerry Z10 devices, they have also sold 370,000 units of their Playbook tablet as well as 5M units of earlier smartphones. However, the company saw a decline in the number of users from 79 last quarter of the previous fiscal year to 76 million at present.
According to Thorstein Heins, cost-cutting has been implemented to ensure that BlackBerry will not suffer from further losses. Looks like whatever it is they're doing is effective and that the Z10 is looking good, considering it's been only out since January in UK and February in Canada and the UAE.
Kind of sad for HTC, seeing it's earning drop quarter after quarter. Taiwan's largest smartphone maker HTC, posted its lowest quarterly profit on record after the delay of its newest flagship phone caused revenue to miss the company's target.
The net income for HTC in the first quarter was just $2.8 million, a painful 98% drop compared to the year ago quarter. Still, any profit is better than a loss, so it's not all bad. Revenue for Q1 2013 was $1.4 billion, down 37% over the year ago quarter (which saw $470 million in net income).
HTC lost early momentum for its HTC One handset in February as a shortage of camera components forced it to delay shipments in key markets by as much as a month. Hopes for revenue rebound this quarter may be limited as the new device becomes widely available less than a month before Samsung's new Galaxy S4, which goes on sale in the U.S. on April 26.
Recently Facebook announced the Facebook Home device - the HTC First - which targets the social network's 1+ billion people with a Facebook-made launcher called Home.
Samsung Electronics Co, the world's biggest technology firm by revenue, estimated its July-September operating profit at a record 8.1 trillion Korean won (RM21.9 billion), driven by strong sales of its Galaxy smartphones.
The South Korean firm's guidance - ahead of full quarterly results by October 26 - was higher than an average forecast of 7.6 trillion won by 16 analysts polled by Reuters.
Samsung, valued at around US$197 billion, estimated its July-September sales at 52.0 trillion won, compared with a market forecast for 51.7 trillion won.
Samsung shares have risen 7.2 per cent since a US court ruled on August 24 that the Korean firm copied parts of rival Apple Inc's iPhone and awarded the California-based firm more than US$1 billion in damages. Apple is up less than one per cent.
Samsung Electronics reported a record quarterly profit of $8.3 billion and kept its 2013 investment plans at the previous year's level, defying expectations that it may reduce spending amid weaker demand for computer chips.
The South Korean firm said October-December operating profit increased 89 percent from a year ago to 8.84 trillion korean won ($8.3 billion), in line with its earlier estimate.
In a statement on Friday, Samsung said it would keep 2013 investment at a similar level to 2012, despite a bleak PC outlook and a move by rival Apple (AAPL) to diversify its supplier base.
Analysts had expected a 4-20 percent cut in Samsung's capital spending this year.
Samsung, the world's biggest smartphone maker and a key supplier of memory chips, flat screens and microprocessors for Apple's iPhone and iPad, has increased its capital spending every year except 2009 since 2004.
Reuters Report: Samsung Electronics Co turned cautious on spending for the first time since the global financial crisis, keeping its annual investment plan unchanged at 2012 levels, as demand for computer chips wanes and the smartphone market slows.
Samsung, one of the industry's most aggressive spenders, has ramped up capital expenditure every year since 2004 except 2009 to meet soaring demand for its array of mobile devices. It sold a record 700,000 smartphones a day in the last quarter.
But with the personal computer market shrinking for the first time in 11 years, the global smartphone market growing more slowly, and Apple Inc moving to buy fewer of Samsung's microprocessors used in the iPhone and iPad, the South Korean IT giant is now forced to keep a lid on spending.
Samsung, which posted a record October-December profit on Friday, said it would keep spending this year at a level similar to 2012, without giving details. The company said previously it planned to spend 25 trillion won ($23.39 billion) in 2012.
While the decision to keep spending unchanged defies analyst expectations of a 4-20 percent cut, rival Taiwan's TSMC by comparison is planning to raise its capital expenditure to $9 billion this year, aimed in part at winning Apple orders away from Samsung.
The South Korean company had poured money into factories to boost production of chips and panels used in Apple products and its Galaxy range products, pushing its operating profit to 8.84 trillion won in the last quarter. The 89 percent increase from a year earlier was in line with its earlier estimate.
Profit at its mobile devices division, which makes phones, tablets and cameras, more than doubled to 5.44 trillion won in the quarter from a year earlier, lifted by a broader offering of smartphones - from the very cheap to the very expensive. It is also seeing strong sales of its Note phablet, which analysts expect to help Samsung get through any seasonal weakness better than rivals.
Samsung, which doesn't provide a breakdown of smartphone sales, is estimated to have sold around 63 million smartphones in the last quarter, including 15 million Galaxy S IIIs and 7 million Note IIs.
SAMSUNG VS APPLE
Apple shipped 47.8 million iPhones in the December quarter, a record that nonetheless disappointed many analysts accustomed to years of outperformance.
Cupertino, California-based Apple missed Wall Street's revenue forecast for a third straight quarter on Wednesday as iPhone sales lagged expectations.
Apple shares have dropped by more than a third since mid-September as investors fret that its days of hyper growth are over and its devices are no longer as 'must-have' as they were.
By contrast, shares in Samsung have risen 12 percent in the same period as the company once seen as quick to copy others' ideas now sets the pace in innovation.
At the world's biggest electronics show in Las Vegas this month, Samsung unveiled a prototype phone with a flexible display that can be folded almost like paper, and a microchip with eight processing cores, creating a buzz that these may be used in the next Galaxy range.
"It's very probable to us that the Exynos 5 Octa (processor) will find its way into the Galaxy S4," UBS analyst Nicolas Gaudois wrote in a recent note.
"It also looked as if the curved display is close enough to finished product. We came away even more convinced that displays will provide significant differentiation to Samsung devices, and application processors will materially grow over time," Gaudois said. ($1 = 1066.2000 Korean won)
(Reporting by Miyoung Kim; Editing by Ryan Woo)
Samsung according to today's reports have broken its previous quarterly earnings when a report unleashed a profit of $6.6 billion in the last quarter of 2012. With Apple reeling at the moment, Samsung is making a steady progress. The evidence of this has been provided by the report defined above. Last quarter earnings of previous year gathered $6 billion for this tech-gaint, whereas, in 2012 it increased its earnings by 18 percent. But, a 62 percent of this earning came from telecom business which meant other Samsung product were low on sell. This really tells that everything doesn't turn out fine for Samsung.
The Wall street Journal reported that Samsung‘s handset profit margin fell down by 1.4 percent i.e. starting from 18.8 percent and ending at 17.4 percent at the end of the quarter. The growths of their revenue also fell down from 82 percent to 58 percent at the end of the quarter.
Samsung released it's first quarter earnings press release this morning, it made an operating profit of $7.9 billion in the Q1 of 2013, matching its guidance and representing a more than 50% improvement on its performance last year. Revenues were $47.6 billion, and net profit was $6.45 billion.
Samsung stated that strong smartphone sales combined with a reduction in its marketing costs was one of the leading causes of its quarterly success. But I suppose such a decent turnover isn't surprising considering that the company sold 3 out of every 10 smartphones last quarter, and still holds an impressive 30% share of the smartphone market.
This month's much-anticipated launch of the Samung Galaxy S4 will make a large impact on Samsung's next quarter, too, though the company warns of increased competition and lower global demand for smartphones.
Source: Samsung Earnings Press Release