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Samsung Neck-and-Neck with iPhone in Q4

Posted January 30, 2020 | Android | Mobile | Samsung | Windows


Samsung reported this week that it earned a profit of $6 billion on revenues of $50 billion in the quarter ending December 31. The firm also reported that it earned $23 billion in profits and $190 billion in revenues in all of calendar year 2020.

In the bad news department, Samsung reported that its quarterly revenues dipped 38 percent year-over-year thanks to falling memory prices.

“The Memory Business reported a year-on-year decline in profit as DRAM prices continued its downward trend despite rising shipments,” the Samsung announcement notes. “However, earnings increased from the previous quarter, underpinned by increasing demand from data centers and other major applications as well as cost reduction. The logic chip business posted a YoY profit growth on demand for high-resolution image sensors and HPC (high-performance computing) chips.”

The good news? Despite Apple’s holiday surge, Samsung sold just as many smartphones in the fourth quarter as did the iPhone maker. Both firms are estimated to have sold about 70 million units in the quarter.

“Quarterly earnings improved significantly for the Mobile Business in annual terms, thanks to solid sales of flagship Galaxy smartphones and lineup changes to improve profitability for mass-market models,” Samsung noted. “Profit fell from the previous quarter, however, due to the fading effect from a new flagship product launch.”

Samsung also said that it expects improvements to its overall business in 2020 despite uncertainties triggered in part by the recent Coronavirus outbreak. The pace of 5G rollouts, it said, “remains to be seen” but Samsung said it would “differentiate” in 5G with various System-on-Chip products and high-resolution sensors. Its enhanced lineup of 5G-based smartphones should also help that business in the coming year, it said.

“The company plans to differentiate its premium smartphones by expanding 5G adoption and introducing new designs for foldable products,” Samsung added.

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