(UPDATED for Q2 actual) An Abbreviated History of Samsung Electronics’ Recent Financial Results

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.)

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:

Revs: 52.35T won (-9.0% YOY)
Operating Profit: 7.19T won (-24.3% YOY)
IM Revs: 28.45T won (-19.9% YOY)
IM operating profit: 4.42T won (-30.0% YOY)

Based on Samsung’s earnings presentation, the IM division is solely responsible for both the decline in overall revenue, and largely responsible (in absolute KRW Trillion terms) for the decline in overall operating profit.

Apparently Samsung’s Display Panel business had a drastic year-over-year drop in operating profit (from 1.12T won to 0.22T won), but since I don’t follow Samsung financials that closely, even by my humble home gamer standards, I’ll leave it to others to find out why – the presentation PDF doesn’t seem to shed light on that subject.

Samsung Electronics, being a ~$225B (US) giga-chaebol, is still about $50B “larger” than Apple (a dominant second place by revenues in tech-company land), and is by any objective measure a far stronger and far more vertically integrated company than Nokia (the previous handset volume leader) could ever hope to have been. It should remain #1 in smartphones for the foreseeable future, and its top-tier componentry businesses still attract top-tier vendors.

Even now, Apple (doubtless with some degree of grudging these days) counts a Samsung subsidiary in its Top 200 Suppliers list – with 21 separate corporate addresses. So it “ironically” contributed to the YOY growth in Samsung’s Semiconductor division.

But with those disquieting Q2 results, I think it’s fair to say that Samsung’s in need of some “halftime adjustments”. And that all of its competitors are eager to take advantage of Samsung’s recent stumbles.

Bodes well for the Cupertino competitor in the Samsung v. Apple matchup. As for “The Entire Smartphone World v. Apple”? That’s a “different” subject which is likely beyond the limits of my limited bandwidth. Maybe another time.

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