Samsung Still Lags Far Behind Apple

Samsung CES 2013

There is no denying that Samsung has been extremely successful at carving aware market share from Apple, but the South Korean consumer electronics maker has yet to reach the same level of profitability as its arch rival. 

Apple announced yesterday that it brought in $13.1 billion profit on $54.5 billion revenue during the fourth quarter. Samsung has since just reported its own quarterly financial results, posting about $8.27 billion [Update: BGR says $6.6 billion] in profits.

What this means is that, although flagship Samsung devices like the Galaxy S III and Galaxy Note II have been selling in volume, Apple maintains higher profit margins on its products than its competition. But, things are changing.

Apple’s year-over-year revenue growth has fell flat, while its profit margins are decreasing because of higher manufacturing costs and lower priced devices such as the iPad mini. Samsung, on the other hand, continues to report increasing revenues and higher profit margins.

Apple remains the world’s most valuable company, while Samsung still has quite a bit of catching up to do. This year will certainly be interesting for both companies, as the two firms continue to battle for supremacy in the tech space.

[Engadget]

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