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Annual Profit of Apple vs. Samsung


Can Samsung Beat The Giant Apple?

Pretty much all wireless carriers offer at least some sort of smartphone to their customers. However, in 2012 for the world of smartphones there were only two top competitors: Apple and Samsung. For that year, both Apple and Samsung divided a total of 101% in profits.

However, in terms of revenue for 2012 it was a different story. For much of 2012 Samsung had a pretty big lead, with $183.5 billion in revenue, while Apple only made $156.5 billion in revenue.

Employee counts for both companies show that Samsung has a staggering lead over Apple in terms of number of employees. Samsung checks in for 2012 with an amazing 220,000 employees, while Apple only employees 115,000. This fight almost doesn’t seem fair with Samsung having a 2 to 1 advantage over Apple.

Research and Development
While Apple may be a top brand, it doesn’t spend much on its advertising and research and development. The company put forward in 2012 about $3.4 billion in research and development and only $1 billion in advertising costs.

This doesn’t seem much when compared to Samsung who spent a whopping $10.5 billion in research and development and almost $3 billion in advertising for marketing their smartphone products.

However in quarter four of 2012, Apple pulled ahead with bigger profits than Samsung, earning $.43 per dollar for every smartphone the company sold while Samsung only netted $.36 per dollar spent on their smartphones. Nokia made $.07 per every dollar spent on their smartphones, while all other phones netted $.14 per dollar spent.

For 2012, Apple’s profits were forty-three percent bigger than Samsung’s. However, Samsung sold more smartphones during quarter three than Apple selling a total of 66.1 million phones, which gave them a 21.8 percent market share increase.

Market Share
Apple however, had a 15.1 percent market share in quarter three of 2012 and only sold 45.8 million phones.

Shipments in 2012 for Samsung for the 2011-12 fiscal year experience a 97.5 percent growth, whereas Apple experienced a 38.3 percent growth during the 2011-12 fiscal year.

In 2012, Apple ranked as the number one choice in smartphone brand loyalty, but Samsung came back in 2013 and beat Apple for first place in smartphone classification. However, Apple came in behind at a close second.

So is Samsung really beating the giant Apple? After comparing the results from the different categories, it would seem that Samsung is indeed winning the fight between them and Apple. However, both brands have a very loyal customer base, so it will be interesting to see what the results turn out for the next quarter. Will Samsung and Apple be the only two smartphone contenders? Or will another contender arise from the pack and spice up the competition?

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