Samsung's Q3 Smartphone Sales Results Will Top Apple for the First Time

Discussion in 'Android News' started by dgstorm, Oct 20, 2011.

  1. dgstorm
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    dgstorm Editor in Chief Staff Member Premium Member

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    [​IMG]

    According to a report from industry insiders, Samsung beat Apple's third quarter results for smartphone sales for the first time. According to Apple's most recent earnings report, they sold 17.1 Million iPhones in Q3. Samsung doesn't publish specific smartphone sales numbers; however, a source from the WSJ was able to tally up the results and put the Korean manufacturer at over 20 Million smartphones for the same period.

    The last sales report in quarter 2 was very close with Samsung coming just shy of matching Apple's numbers, so this new report isn't surprising. Here's a quote from the SlashGear article with Apple's CEO Tim Cook's take on the subject,
    With the recent announcement of the Galaxy Nexus and Google's Ice Cream Sandwich, Samsung's market pressure will only continue to mount against Apple.

    These results from both Samsung and Apple have firmly shoved Nokia, once the largest cellphone manufacturer in the world, into third place. In fact, Nokia's sales for the third quarter slid dramatically downward by 38 percent. Nokia is banking on the idea that the Windows Phone 7 OS will rescue them.

    Source: Android.net via SlashGear
  2. GrillMouster
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    GrillMouster New Member

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    Makes sense. I'm sure that a bunch of folks held off of bying the iPhone 4 during Q3 in anticipation of the 4S being released in October, which falls in Q4. Apple was at its most vulnerable at the same time that Samsung's popular Galaxy S II was selling around the world and debuted in the US.
  3. czerdrill
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    czerdrill New Member

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    Shipped vs sold again...
  4. GBH2
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    GBH2 New Member

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    But they all THOUGHT they were buying iPhones because they look the same. :) j/k
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  5. screaminz2002
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    screaminz2002 New Member

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    The iPhone killer was 3g for another year and a phone that looks exactly the same. I considered it right up to 3g. Its kind of pathetic actually.

    Sent from my DROID using DroidForums
  6. BenLand150
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    BenLand150 Premium Member Premium Member

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    I don't see how?

    ICS is good, but not as good as iOS5.

    iOS 5 added a revolutionary new notification system, and the ability to do magical things, like update your phone without a computer.

    And we got amazing new voice command system, that can do things like send messages with your voice.





    /s
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  7. pyro6128
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    pyro6128 New Member

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    I have to admit, you got me with the first two lines. At the 3rd it all made sense haha
  8. screaminz2002
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    screaminz2002 New Member

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    Unfortunately got me too. :)

    Sent from my DROID using DroidForums
  9. jcardona1
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    jcardona1 New Member

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    Read this too somewhere. Shipped does not = sold. We need to compare apples to apples.
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  10. czerdrill
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    czerdrill New Member

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    Yep. Samsung did not sell 17 million smartphones in one quarter. Unless they had an explosion of sales out of the blue (which they didn't), we're talking about shipped here...

    Samsung did this with the galaxy tab as well, where they said they sold millions and it turned out to be thousands...they don't give sales numbers though so we probably won't find out
  11. kodiak799
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    kodiak799 Well-Known Member

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    Car makers do the same thing - dealers buy it so shipped and sold are the same thing and the mfr targets a certain days on-hand in inventor, unless inventory is building beyond normal turnover shipped vs sold is just a timing difference. And, no, I don't see hundreds or thousands of Sammie phones sitting in warehouses or being given away. Sammie has been gaining ground on IPhone fast, and while I doubt they passed them this quarter, it will happen soon.
  12. czerdrill
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    czerdrill New Member

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    Well to be fair no one really sees a store's stock and I know I've never visited warehouses that hold phones. Samsung definitely sold a lot, but I find it hard to believe they sold 17 mil in a quarter...I don't really give them the benefit of the doubt after the galaxy tab thing. Remeber they said they sold two million and when pressed admitted that was shipments and had only sold a few thousand. See no reason why this would be different.
  13. kodiak799
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    kodiak799 Well-Known Member

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    Sales never trail shipments by much. They just don't. Samsung doesn't just ship Best Buy whatever Sammie wants to, and Best Buy doesn't get to send back hundreds of thousands of devices that don't sell. You order it you bought it.

    And this is an analyst (granted, they do miss the mark more than occassionally) extrapolating sales from what I would guess would be segment (smartphone) revenues/profits.
  14. garrett
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    garrett New Member Theme Developer Developer

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    who ever said they were being shipped to retailers.... all shipped means is that they left the manufacturing warehouse. In most cases they were shipped from the manufacturer to Samsung warehousing facilities all over the world.
  15. kodiak799
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    kodiak799 Well-Known Member

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    No, shipped has a fairly precise and generally accepted meaning when reporting financials. "Shipped" means to wholesalers/distributors/customers, not your own warehouse. Your definition of shipped is no different from production - there's a reason they are referring to units shipped rather than produced.
  16. czerdrill
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    czerdrill New Member

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    There could very well be a reason why they're referring to units shipped rather than sold, too of course. Regardless, we won't know because Samsung doesn't release shipment numbers or sold numbers so its all extrapolation and guesswork. I'm still going to stick with Samsung not selling 20M phones in one quarter simply because of what they've done in the past with the same type of figures (granted its not them saying it this time), but who knows.
  17. jcardona1
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    jcardona1 New Member

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    You don't know that for sure. We have no idea what kind of agreements Samsung has. I work in finance/accounting, so I see this every quarter. Our company has several funky little agreements. We are a manufacturer. A lot of our inventory is shipped, but not 'sold'. It sits in the warehouses of distributors as 'consigned' inventory. We shipped it, and it's no longer in our warehouse, but we still own it. We don't recognize the sale and the revenue until the good is "consumed" by the 3rd party. Samsung may very well have similar agreements with wholesalers and distributors.

    Wholesalers and distributors don't want tons of inventory sitting on their books. That is where these consignment agreements come in. They have our inventory, but it's still ours. It's reported on our balance sheet as 'off-site' or consigned inventory. The wholesaler/distributor has the financial liability to the inventory only when it's consumed. At that point we recognize the sale and remove the item from our inventory. It's basic accounting.

    Long story short, shipped DOES NOT always = sold. If they said SHIPPED instead of SOLD, it's because they have not recognized the revenue on these shipments. Reporting them as units SOLD would be misleading, and they know that, that's why they said shipped.
  18. kodiak799
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    kodiak799 Well-Known Member

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    I work in finance/accounting, too, with a background in investments. Financial reporting requirements are different from internal (you own your warehouse inventory, it's on your books as inventory and not revenue). "Shipments" has different meaning than "production", and usually means sold to distribution channels but not end customers - legit revenue booked for Sammie. Shipments are expected to convert to end-customer sales shortly, allowing for lag in transit. This is materially different from simple production. What you are implying is channel stuffing, whereby Sammie overships and the customer will end-up sending that back, and it's an unethical, if not illegal, earnings manipulation practice that happens rarely.

    And, again, this is not Sammie reporting the numbers, it's an analyst making an extrapolation which is probably at least a ltitle off the mark as Czerdrill noted. But probably closer than most acknowledge because he knows approximately the margin on the phones and it's a simple calculation to extrapolate sales based on reported segment profits.
  19. jcardona1
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    jcardona1 New Member

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    Channel stuffing? Did you even read what I wrote? I mentioned consigned inventory, that BELONGS to Samsung and is still on their balance sheet as their very own inventory, but is reported as 'shipped'. HUGE difference from channel stuffing. Consigned inventory can remain consigned indefinitely really.
  20. czerdrill
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    czerdrill New Member

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    This honestly sounds like the far more likely reason for these numbers then Sammie actually selling 20M. Samsung reports these as shipped and there is no risk to the customer's capital unless the product is actually resold.