Revenues and operating profit (which both the financial press and Samsung use), in trillions of won (basically “billions of USD” at today’s exchange rates).
“IM” is Samsung’s IT & Mobile Communications division, which includes smartphones and tablets.
(Historical data source: Samsung Investor Relations website; IM data from quarterly PDF presentation files, Samsung IR Calendar. Guidance source: MarketWatch/WSJ; UPDATED – Samsung IR Q2 guidance news release)
Calendar Q2 2013:
Revs: 57.5T won (+20.7% year-over-year)
Operating Profit: 9.5T won (+46.2% YOY)
IM Revs: 35.5T won (+47.8% YOY)
IM operating profit: 6.28T won (+49.9% YOY)
Calendar Q3 2013:
Revs: 59.1T won (+13.2% YOY)
Operating Profit: 10.2T won (+25.9% YOY)
IM Revs: 36.57T won (+22.2% YOY)
IM operating profit: 6.7T won (+19% YOY)
Calendar Q4 2013:
Revs: 59.3T won (+5.7% YOY)
Operating Profit: 8.3T won (-5.7% YOY)
IM Revs: 33.89T won (+8.2% YOY)
IM operating profit: 5.47T won (+0.6% YOY)
Calendar Q1 2014:
Revs: 53.7T won (+1.5% YOY)
Operating Profit: 8.5T won (-3.4% YOY)
IM Revs: 32.44T won (+2.1% YOY)
IM operating profit: 6.43T (-1.2% YOY)
Calendar Q2 2014 (based on guidance):
Revs: 52T won (midpoint guidance) (-9.6% YOY)
Operating Profit: 7.2T won (midpoint guidance) (-24.2% YOY)
Kind of a reversal of fortune there, isn’t it.
IM Revs/Operating Profit will be provided when Samsung’s actual results are released, probably later in the month. But given the guidance and the trends, I don’t think it takes too much effort to guess the general trajectory of the IM division on a year-over-year basis.
Is Apple really fighting a losing battle, so to speak? Sure, competition from all sides (not just Apple) and currency (which a megacorporation should be able to hedge to some degree) are definite contributing factors in Samsung’s not-so-great quarter.
But my tinfoil theory: Apple’s lawsuits have affected Samsung’s product planning as well, which in turn have had some (albeit unquantifable/unprovable) impact on Samsung’s products.
Apple faces competitive threats from many other players besides Samsung – in theory, its premium positioning makes it at least as “vulnerable” if not moreso – and so far, so
good pretty decent. Will this relative performance divergence continue in the quarters ahead?